Legislature(2011 - 2012)BARNES 124
01/24/2011 03:15 PM House LABOR & COMMERCE
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| Overview(s): Department of Commerce, Community, and Economic Development | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
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ALASKA STATE LEGISLATURE
JOINT MEETING
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
January 24, 2011
3:23 p.m.
MEMBERS PRESENT
HOUSE LABOR AND COMMERCE
Representative Kurt Olson, Chair
Representative Craig Johnson, Vice Chair
Representative Dan Saddler
Representative Paul Seaton
Representative Steve Thompson
Representative Lindsey Holmes
Representative Bob Miller
SENATE LABOR AND COMMERCE
Senator Dennis Egan, Chair
Senator Linda Menard
Senator Cathy Giessel
Senator Bettye Davis
MEMBERS ABSENT
SENATE LABOR AND COMMERCE
Senator Joe Paskvan, Vice Chair
COMMITTEE CALENDAR
OVERVIEW(S): DEPARTMENT OF COMMERCE~ COMMUNITY~ AND ECONOMIC
DEVELOPMENT
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
SUSAN BELL, Commissioner
Department of Commerce, Community & Economic Development (DCCED)
Juneau, Alaska
POSITION STATEMENT: Presented an overview of the DCCED
divisions, programs, and functions.
DON HABEGER, Director
Division of Corporations, Business, and Professional Licensing
Department of Commerce, Community & Economic Development (DCCED)
Juneau, Alaska
POSITION STATEMENT: Answered questions during the Overview of
the Department of Commerce, Community & Economic Development
(DCCED).
ACTION NARRATIVE
3:23:58 PM
CHAIR KURT OLSON called the joint meeting of the House and
Senate Labor and Commerce Standing Committees to order at 3:23
p.m. Present at the call to order from the House Labor &
Commerce Committee were Representatives Olson, Seaton, Johnson,
Saddler, Thompson, Holmes and Miller. Present from the Senate
Labor & Commerce Committee were Senators Davis, Giessel, Menard,
and Egan. Representative Herron was also in attendance.
^OVERVIEW(S): Department Of Commerce, Community, and Economic
Development
OVERVIEW(S): Department Of Commerce, Community, and Economic
Development
3:24:37 PM
CHAIR OLSON announced the only item on the agenda would be an
overview of the Department of Commerce, Community and Economic
Development (DCCED).
3:24:40 PM
SUSAN BELL, Commissioner, Department of Commerce, Community, &
Economic Development (DCCED), began by introducing DCCED staff
present at the meeting. She presented a PowerPoint overview of
the department. She reported the department's mission is to
promote a healthy economy, strong communities and protect
consumers in Alaska [slide 2]. She identified four department
priority areas, which include coordinate, develop, and promote
its programs for sustainable economic growth. The DCCED's
Economic development activities are organized in the Division of
Economic Development, Alaska Seafood Marketing Institute (ASMI),
the Alaska Aerospace Development Corporation (AADC), and the
Alaska Industrial Development and Export Authority (AIDEA).
Sustainable energy programs are implemented through the Alaska
Energy Authority (AEA). The regulatory and consumer protection
activities are implemented in four divisions: the Division of
Banking and Securities, Division of Business & Professional
Licensing, the Division of Insurance, and the Regulatory
Commission of Alaska (RCA). The Division of Community and
Regional Affairs (CRA) and Serve Alaska work to assist
communities to achieve maximum local self-government and to
foster volunteerism statewide, she stated.
COMMISSIONER BELL related that six DCCED core agencies or
divisions provide services: Administrative Services, Banking
and Securities, Community and Regional Affairs, Corporations,
Business and Professional Licensing, Economic Development, and
Insurance [slide 3].
3:27:11 PM
COMMISSIONER BELL noted that the DCCED also houses seven
corporate agencies [slide 4]. She pointed out the DCCED's
administrative interaction with the corporate entities varies
considerably. In some instances, the DCCED participates on the
board, in other instances the department provides administrative
services for the corporate agency, and some entities function
more independently.
3:27:45 PM
COMMISSIONER BELL outlined the departmental organizational chart
that amplified her earlier comments [slide 5]. She explained
that the corporate agencies are listed to the left and right of
the organization, with the core agencies on the bottom. She
explained that together the DCCED offers considerable breadth
and engages in a wide array of businesses, communities, not-for-
profit organizations, and individual consumers throughout the
state in its daily activities.
3:28:25 PM
COMMISSIONER BELL referred to a map of Alaska [slide 6], which
identifies the location of its 538 employees. She related that
the stars indicate the existence of at least a Division of
Community and Regional Affairs (DCRA) office. The map does not
reflect seasonal employees in the public lands information
center in Tok, the Alaska Aerospace Corporation (ADC) operations
in Kodiak, or the Alaska Seafood Marketing Institute (ASMI)
office in Bellevue, Washington, she said. She identified the
DCCED staff located in the Kotzebue, Nome, Bethel and Dillingham
field offices as DCRA staff.
3:29:37 PM
COMMISSIONER BELL elaborated on the DCCED's changes and
accomplishments [slide 7]. The Banking and Securities Division
consists of 24 employees located in Anchorage and Juneau with an
overall budget of approximately $3.5 million. It conducts a
wide-range of activities such as to register and license banks
and chartered banks, provide consumer education, file ANCSA
proxy corporate filings, and engage with banks, mortgage lenders
and corporations. The division collected over $11 million in
fees last year, conducted 38 examinations of depository and non-
depository institutions, issued 38 money transmitter licenses,
and 205 new mortgage licenses, she reported. She highlighted
that the DCCED's consumer protection aspect, noting the division
partnered with other lead states in acquiring Alaska's share of
global settlements and investment firms and is currently
finalizing written agreements with each firm. She noted the
division partners with the federal government to examine the
financial strength of banks.
COMMISSIONER BELL turned to the Division of Community and
Regional Affairs (DCRA), which she stated consists of 60
employees and whose current budget is $10.8 million. Its
employees conduct extensive day-to-day contact with
municipalities, not-for-profit organizations, and tribal
entities. She identified core programs that provide local
government assistance and a wide array of technical assistance
ranging from accounting, elections, interpreting state statutes,
all of which helps ensure daily functionality of small
governments throughout the state. One program legislators may
be familiar with is the Rural Utility Business Advisory program
offered in 167 communities throughout the state. This program
focuses on the sustainability of water and wastewater programs.
The CRA works with the Local Boundary Commission and the state
assessor to provide land management assistance, and publishes a
number of reports in a community database, Lien Watch and other
publications. The DCRA is engaged with communities of all
sizes, with its particular emphasis is to ensure the
sustainability of communities with populations of 2,500 or less.
COMMISSIONER BELL offered that the DCCED administers a number of
grants. She noted one of the DCCED's responsibilities is to
oversee $1.2 billion in grants appropriated in last year's
capital budget. The grant amounts represented twice the dollar
volume as well as a dramatic increase in the transaction volume.
The DCCED is currently working to finalize these grants to some
entities. The DCCED is also actively engaged in working on
grant agreements and the processes to administer them. In FY 10,
the CRA distributed $34 million in federal funds for the Payment
In Lieu Of Taxes (PILT), National Forest Receipts, Fisheries
Business Tax and the Fisheries Landing Tax programs.
Additionally, in 2010 the Bulk Fuel Bridge Loan Program provided
funding to 21 different communities for communities not eligible
for bulk fuel loans through AEA, which are then assured to
obtain a bridge loan through its DCRA division. She stated the
DCCED's goal to offer its participants a method of
sustainability for loan repayment to allow participants and
allow them to segue into a more traditional loan program.
3:34:36 PM
COMMISSIONER BELL referred to the Division of Corporations,
Business and Professional Licensing (DCBPL) [slide 8]. She
advised that this division's primary function is to issue
business licenses and process corporate filings. She related
that the DCBPL has made significant improvements to overcome a
serious backlog. This past year it reduced the delay in issuing
business and corporate licenses from 14 weeks to 2 weeks or
less. Additionally, the DCCED has worked to increase technology
use, including on-line filings and transactions for all of its
activities. With respect to professional licensing, the
division oversees licensing for 40 professions, of which 20 have
boards to assist them in developing regulations and providing
administrative support, while the remaining 20 professions are
assisted solely by division staff. The DCBPL collected nearly
$14 million in fees and its investigators handled 701 complaints
resulting in 556 cases and 397 disciplinary actions, ranging
from fines, education, and monitoring to license revocations.
The DCCED's goal is to facilitate functioning businesses while
providing public protection.
COMMISSIONER BELL turned to the Division of Economic Development
(DED), relating that staff is located Anchorage, Fairbanks, and
Juneau. She noted the Alaska Public Lands Information Center
(APLIC) in Tok is also administered by the DED. The DED's
budget is nearly $9 million. One recent change was the merger
of the Division of Investments and the Office of Economic
Development. The department's goal and purpose for the merger
was to provide a framework to better serve the business
community throughout the state by realigning its functions. She
mentioned that last year her role was as the Governor's special
assistant, which was concurrent with Deputy Commissioner
Thayer's appointment. In that capacity, she noted that
substantial concern and discussion arose with respect to the
state's economic development functions. Some people had
expressed concern that the DCCED and the state had fragmented
programs with a narrowly defined focus on a few important
industries such as the sectors involving minerals, seafood,
forest products, tourism, and the film office. Administrative
Order #257 merged the Division of Investments with the Office of
Economic Development. Merging the two divisions strengthens the
department's economic development's functions and enables the
agency to interact more with the business community statewide,
she said.
3:39:07 PM
COMMISSIONER BELL outlined that the majority of its financing
staff oversees a dozen loan programs that target small
businesses. She reported that aside from AIDEA, which is
primarily the commercial development finance arm, the DED staff
is largely located in Juneau, with a few staff in Anchorage.
The DED's portfolio is primarily comprised of commercial fishing
programs, with a number of its participants engaged in acquiring
boats, quotas, and to repower boat engines. She highlighted a
number of underutilized loan programs have not met the DCCED's
goals, such as the Capstone Avionics, the Rural Development
Investment Fund (RDIF), and Small Business Economic Development
(SBED). She related that having offices in Anchorage,
Fairbanks, and Juneau, allows the department to better share
information, and improves communication and feedback to loan
officers and from a policy perspective, which allows managers to
take advantage of industry expertise. She said the Governor
introduced a bill today that would provide financing for several
components, including a Microloan Revolving Fund, a Mariculture
Revolving Loan Fund, and Commercial Charter Fisheries Revolving
Loan Fund. She anticipated that legislators would have an
opportunity this legislative session to discuss the merits of
these programs more fully, noting the ideas came from the
business community. She asserted that from a financing
standpoint the DCCED is poised to interact with the business
community statewide. She added that this also positions the
DCCED to examine other activities such as marketing, research,
business and technical assistance, outreach and coordination
with other agencies. She offered her belief that this merger
gives the department the ability to leverage staff and be more
effective. Since this change is recent, the DCCED is still
working on position changes and program development, but she
said she thought that this change will enable the department to
be more effective and will result in a more robust economic
development in the state.
3:42:00 PM
COMMISSIONER BELL moved on to discuss financing in the division.
She outlined that the DED made 268 loans totaling $20.3 million
from six different loan programs. In terms of business
outreach, state chambers and business leaders have recently
acknowledged that the DCCED is more engaged with the private
sector than previously. She anticipated further strengthening
and improvements in these areas. She pointed out one focus as
really thinking from a business retention and expansion
perspective. She recalled an example she used in a recent
speech with respect to a company furloughing some of its pilots.
The subsequent fallout blamed the organization for changing its
administrative structure, noting the adverse impact the
downsizing would have on Alaska's economy. However, from the
DCCED's perspective, that "thinking is backwards", she said.
Instead, the state should be thinking more systematically about
retaining businesses and whether financing, facilities, or
coordination could better serve a business. She remarked that
the DCCED will focus on attracting and retaining businesses in
the state.
COMMISSIONER BELL highlighted the significant emphasis on the
film program, with respect to the Alaska Film Production
Incentive Program. She reported that 29 film productions have
been prequalified to receive tax credits and four have completed
the process and were approved for nearly $250,000 in tax
credits. Since the completion of the film, Everybody Loves
Whales, as well as from other productions, the department has
experienced an increased awareness of the film incentive tax
credits. The DCCED is working to be as effective as possible
using its staff, financial resources, and partners to develop a
more robust industry. Thus far, the outreach to communities and
the private sector has been significant. She said she hopes to
achieve greater economic depth and value from the Alaska Film
Production Incentive Program. She related the DED conducted
marketing and research components in minerals, seafood, tourism,
and forestry industries. Last year the DED's engaged with the
visitor industry to work on the business perspective as well as
with cruise lines and tour operators to understand their
concerns. This effort assisted the department in advising the
governor, the legislature, and the industry to help support the
cruise ship head tax reductions and increased marketing. She
reiterated that the DCCED used a combination of market research,
outreach, and policy advice in that instance, which she said she
hoped that is the kind of interaction and engagement that could
be replicated in other industries.
3:46:04 PM
COMMISSIONER BELL brought up the next core agency, the Division
of Insurance (DOI) [slide 9]. She reported this division
collected over $62 million in premium taxes, penalties, and fees
in FY 10. She said the DOI is charged with licensing insurance
providers, ensuring the financial solvency in compliance of
insurance providers, and conducts consumer education and
protection. Its director, Linda Hall, and her staff take their
mission seriously. In 2010, criminal investigations resulted in
seven convictions, two of which resulted in jail sentences and
time served. She stressed that individuals, businesses, and
entities rely on insurance, and problems can result in ruin for
a person, a business, or a community. The DOI collects premium
taxes, penalties and fees for its services and must work with
increasingly complex insurance programs and policies. She
highlighted that from a regulatory and investigative standpoint
that it has become increasingly time-consuming to monitor the
market. She noted that last year the DOI investigated 306
consumer complaints, taking action that resulted in payments of
over $250 thousand to Alaska's consumers. The consumer
protection and fraud investigation works hand-in-hand to handle
any flare ups, she said.
3:48:47 PM
COMMISSIONER BELL turned to corporate entities in the DCCED
[slide 10]. In November 2010, the Alaska Aerospace Corporation
(AAC) held a launch that some legislators attended. In May
2011, another launch is planned and she extended an invitation
for members to attend. She expressed her excitement in touring
the Kodiak facility, especially in the company of U.S. Pentagon
staff and NASA Kennedy Space Center personnel who understand
what a tremendous resource the aerospace program is for Alaska.
The AAC's management is actively working to bring additional
customers to Alaska. She pointed out the governor has
introduced an executive order to move the corporation from the
DCCED to the Department of Military & Veterans Affairs. The
DCCED supports this change as it recognizes the considerable
economic impact on job creation and business benefits.
Additionally, whether serving military or commercial clients or
a combination as the Alaska Aerospace Corporation grows, the
community of Kodiak, Southcentral, and all of Alaska will
benefit greatly, as will the private sector.
COMMISSIONER BELL turned to the Alaska Energy Authority (AEA),
noting the AEA just completed a significant document, the 2010
Alaska Energy Pathway. Some of its programs include Rural Power
Systems Upgrade Program (RPSU), Bulk Fuel Program and the
Renewable Energy Fund Grant Recommendation Program - ReFUND.
She related that the Renewable Energy Fund Grant Program
approved totaled $150 million for 133 projects. Additionally,
other programs include the Alternative Energy and Energy
Efficiency Program, which examines energy efficiency for
commercial facilities. Currently, the DCCED is involved in the
process of hiring a new executive director. She said she
anticipated the department would conduct interviews in the next
week or two to fill the position left vacant after the director
resigned last fall.
3:51:55 PM
COMMISSIONER BELL discussed the overview of the Alaska
Industrial Development Export Authority (AIDEA) [slide 11]. She
explained that AIDEA is involved in commercial development
finance, with projects that the state owns directly, and the
state also engages in loan participation. She commended AIDEA
for completing its strategic plan, as well as for efforts taken
to further educate its staff and board. She related that AIDEA
has examined its flexibility and responsiveness and has brought
in some new financing tools. A bill recently introduced this
legislature would examine a proposal for new market tax credits.
The entity has been increasingly creative to work to stimulate
economic development. Its Revolving Loan Fund assets increased
by $37 million and its total funds are just under $400 million.
The AIDEA dividend to the state, approved by the board for FY
12, will be $29 million, with the total dividends paid to the
state reaching over $304 million since its inception. She
characterized AIDEA as an asset for businesses, providing
tremendous earning power for the state.
3:53:30 PM
COMMISSIONER BELL recognized the Alaska Seafood Marketing
Institute (ASMI) staff present at the hearing and began her
overview of the ASMI. She said that in many ways the seafood
industry has had a banner year. Since 2002, Alaska seafood
export value has increased nearly 23 percent from $1.78 billion
to $2.19 billion in 2009. The ASMI has been aggressively
working in the international and domestic markets, including
helping food service programs and retailers to recognize how
best to utilize Alaska's fish and seafood assets. She reported
that ASMI had a pavilion at the European Seafood exposition,
with on-site sales totaling nearly $50 million on-site, with
follow-on sales projected to reach over $500 million. She
reiterated that ASMI partners with other entities, commercial
fishermen, the Alaska travel industry on consumer media. She
characterized the ASMI as a vibrant organization.
3:55:16 PM
COMMISSIONER BELL turned to the Regulatory Commission of Alaska
(RCA) [slide 12]. She related that the DCCED works closely
administratively with the RCA. The commissioners for the RCA
are appointed and the DCCED commissioner or deputy commissioners
do not sit on the RCA's Board of Directors. She noted that
99.95 percent of the tariff filings made in FY 10 were reviewed
and processed within regulatory timelines. Nearly 92 percent of
Power Cost Equalization (PCE) eligible utilities were in
compliance at the end of FY 10. Additionally, in FY 10, 100
percent of the final orders in adjudicatory dockets were
reviewed by an assistant attorney general and all of the final
decisions were issued on or before the statutory deadline. The
RCA is currently monitoring 598 active certificates and
regulates a broad range of wastewater systems, electric, natural
gas, telecommunications, and pipelines. She reiterated that
this agency works independently.
COMMISSIONER BELL reported the last corporate agency, Serve
Alaska, funded through the AmeriCorps Vista program has four
employees with a budget of $3.5 million, largely comprised of
federal grants. This agency helps provide volunteer service for
education, public safety, health, and the environment. She
noted that this small staff interacts statewide.
3:57:39 PM
COMMISSIONER BELL referred to an overview slide of the DCCED's
budget [slide 13]. She detailed that the total department's
budget request for FY 12 is $204 million, which represents a
reduction of 4 percent from last year's budget of $213 million.
She detailed the FY 12 budget request by line item, noting the
breakout of $55 million for personal services, $2.5 million for
travel, $3.6 for commodities, $6.9 million for capital outlay,
and $69.0 million in grants.
3:58:58 PM
COMMISSIONER BELL explained the FY 12 budget is also broken out
by funding source [slide 14]. She pointed out the last bar on
the bar graph illustrates the reduction in the overall budget
from $213 million to $204 million. In conclusion, she
reiterated the tremendous breadth of the department, working
from rural areas to rockets, covering municipalities of all
sizes, businesses of all sizes, and interacting with consumers.
The DCCED is poised to move forward and be increasingly
effective in its economic development programs, continue the
strength in the regulatory, consumer protection and local
government assistance programs she stated. She reiterated she
anticipates an increased use of technology, expanding beyond the
online programs and an overall increase in the effectiveness of
the department.
3:59:47 PM
REPRESENTATIVE HOLMES expressed interest in two areas, which she
was pleased were discussed extensively: corporations and
economic development. She noted that her concerns are being
taken seriously and she commended the commissioner on making
strides in reducing the processing time for corporate filings
and eliminating the registrations' backlog. She related that
the business community and her constituents have registered
complaints about the processing time. She pointed out that when
conducting a large business process, that New York bankers did
not understand why they could not obtain certified copies of all
the documents on the day of the closing. She commended the
division's staff, recognizing that the staff has been swamped
with applications. She encouraged ongoing communications
between the department and her office. She said she is happy to
hear the efforts being made in economic development, in addition
to the oil and gas industry, which can help attract and sustain
other businesses and industry.
4:01:50 PM
SENATOR MENARD asked the reason that the DCCED has "pulled back"
on one of the deputy commissioners.
COMMISSIONER BELL responded that the DCCED is relatively small
department, consisting of 538 employees, not including the
Alaska Railroad Corporation. She reiterated the recent merger
of the Division of Investments and Economic Development and the
impact it will have on the department's efficiency. She related
that she is comfortable with her position and noted that Deputy
Commissioner Curtis Thayer has now been with the department for
over a year. He was initially asked to work with five
divisions. She acknowledged that serving on commissions and
sub-cabinets stresses the commissioner and deputy commissioners
a little, but felt the overall system is working well. In part,
the system works well due to the department size, physical
locations in Anchorage and Juneau, and its overall team
approach. Recently, the second deputy commissioner position was
reclassified to special assistant. This deputy commissioner
located in Anchorage is project oriented and efficient. These
changes have worked well for the department, she concluded.
4:03:50 PM
SENATOR MENARD asked for clarification that the DCCED is
supportive of transferring the Alaska Aerospace Corporation
(AAC) to the Department of Military & Veterans Affairs (DMVA).
COMMISSIONER BELL responded that the DCCED's focus has been the
sustainability of the corporation, not only for the physical
plant in Kodiak, but to heighten awareness of the unique orbits
and other advantages. After examining the agency, the DCCED
concluded that aligning the aerospace function with MVA provides
the access to launch clients and key contacts that enhance the
corporation's opportunities for sustainable funding. She
related that the AAC will not just serve commercial clients,
such as satellite launches, but the AAC will also pursue
government and private clients. She offered her belief that
having the agency located in a military organization could help
it to secure federal launches and would afford it better access.
She recalled some reports and publications also reviewed the
economic development of the organization. The DCCED wants to
perpetuate the economic impact, and assist the corporation to
sustain, grow, and thrive.
4:06:10 PM
COMMISSIONER BELL, in response to Senator Menard, related that
Florida and Brandenburg, California aerospace organizations are
federal entities. Alaska is unique in that the Kodiak facility
is a state asset. She recalled that the Florida and California
personnel complimented Kodiak on its customer service and
responsiveness. She said she thought the alignment in MVA will
further enhance communication since its circle is different from
the DCCED's circle.
4:07:15 PM
REPRESENTATIVE SEATON recalled a budget request of $40 million
over a three-year period for operational subsidies. He asked
for clarification on the budget request, with respect to the
DCCED and MVA budgets.
COMMISSIONER BELL answered that the budget request is reflected
in the DCCED's FY 12 budget. She related her understanding that
in terms of transferring the request to the MVA budget, it would
result in a net zero impact but she would also obtain technical
advice to figure out the mechanics of doing so. She indicated
that the actual FY 12 budget request for FY 12 is $4 million.
She elaborated that for aerospace launches of this magnitude,
the state's partners need the state to demonstrate continuity of
its commitment. Launches take years to plan and the purpose of
the $40 million has been to demonstrate to the marketplace that
Alaska is committed, will maintain its launch facility, and be
able to conduct business. She reiterated the budget request for
this fiscal year is for $4 million.
4:09:25 PM
REPRESENTATIVE SADDLER remarked that he attended the November
2010 launch. He asked whether there has been a shift in the
corporate name.
COMMISSIONER BELL explained that last year the name changed from
the Alaska Aerospace Development Corporation to the Alaska
Aerospace Corporation (AAC), recognizing that the facility is
now firmly established and operational and the development phase
has been completed.
4:10:09 PM
REPRESENTATIVE SADDLER asked for details on the new financing
tools for AIDEA.
COMMISSIONER BELL answered that one component relates to the new
market tax credit. She acknowledged that while she is not as
well versed as AIDEA on the financing tools, it was her
understanding that the new market tax credit is a development
tool that allows an entity to make an investment in an
economically underutilized and disadvantaged area, which is
determined by census data. This credit is designed to attract
investments to economically disadvantaged areas. She offered
her further belief that the timeframe is for a seven-year window
and during that time an entity would only repay interest, which
allows the investment to "get some legs" underneath it before
paying traditional loan repayments. The program has more
technical aspects available through Alaska growth capital and is
an allocation issued by the federal government. If this plan
passes, AIDEA would be eligible to receive some of the
allocation. The AIDEA would consider using this as a tool for
its clients. She pointed out that last year legislation passed
that would allow AIDEA to be a partial owner. This year, the
entity would like to clarify that the AIDEA has the authority to
participate with a limited liability corporation (LLC).
4:12:27 PM
SENATOR GIESSEL recalled one of the DCCED's objectives is to
provide consumer protection. She stated that a federally
mandated program under the Board of Nursing, which is also
federally funded, provides oversight of certified nurse aide
programs. She asked for a status report on the position.
4:13:43 PM
DON HABEGER, Director, Division of Corporations, Business, and
Professional Licensing, Department of Commerce, Community, and
Economic Development (DCCED), explained that in FY 02, a
position for Nurse Coordinator 1 was removed from the budget,
although he said he was uncertain why it was deleted. He stated
that the DCCED receives $100,000 in federal funds from the
Department of Health and Social Services (DHSS), which pays for
a licensing examiner in the nurse aide program. He advised that
last week the Board of Nursing advised him that it would like to
go back to prior program, and while he is looking for a means to
do so, he has not yet found a solution.
4:14:59 PM
CHAIR OLSON related that he has some concern about the staffing
level in Division of Insurance (DOI). He related his
understanding that in the past 12 months the division has picked
up responsibility to implement "Obamacare" and other federal
changes such as the Surplus Lines Insurance Multi-State
Compliance Compact (SLIMPAC). He asked whether the division has
adequate staffing to deal with the federal mandates.
COMMISSIONER BELL answered that Director Hall has been a key
part of the team working to address health care changes, which
she then characterized as a rigorous process with firm
deadlines. She indicated that Ms. Hall networks with other
states. She stated that the DCCED supports the governor's
budget, but at the same time she also recognized that the
changes have created additional stress for staff. She offered
to follow-up on the concern and meet with the director to obtain
more information. She agreed this division is "working around
the clock."
CHAIR OLSON related that he works closely with Director Hall but
has not discussed this issue with her.
4:17:34 PM
CHAIR OLSON also expressed the same concern about the Regulatory
Commission of Alaska (RCA), since it has been given the added
responsibility for gas storage and recognizing the timeliness of
the proposed gas line approval. He related his understanding
that the RCA lost some key people, although he was unsure if it
was due to salary issues or some other issue. He related the
importance of having the RCA fully staffed while the state wends
its way through the proposed gasline project process.
COMMISSIONER BELL agreed that the RCA has increased
responsibility. She also acknowledged that Chair Pickett is
quite dedicated. She advised that the DCCED is working with the
Department of Administration to reconsider some earlier
decisions made on classification study to ensure the RCA can
attract employees. She offered to follow-up on this concern.
CHAIR OLSON expressed his support for the DOI, further noting
that it appears to him to be a "cash cow" since it brings in
revenue equal to nine times its budget.
4:20:37 PM
ADJOURNMENT
There being no further business before the committees, the joint
meeting between the House Labor and Commerce Standing Committee
and the Senate Labor & Commerce Standing Committee was adjourned
at 4:20 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| DCCED Overview Slide Show January 24 2011 Final [Read-Only] [Compatibility Mode].pdf |
HL&C 1/24/2011 3:15:00 PM |
DCCED Overview |