Legislature(2019 - 2020)BARNES 124
03/27/2019 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB45 | |
| HB68 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 45 | TELECONFERENCED | |
| *+ | HB 68 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 27, 2019
3:18 p.m.
MEMBERS PRESENT
Representative Gabrielle LeDoux, Co-Chair
Representative Adam Wool, Co-Chair
Representative Zack Fields
Representative Sara Hannan
Representative Josh Revak
Representative Dave Talerico
MEMBERS ABSENT
Representative Louise Stutes
COMMITTEE CALENDAR
HOUSE BILL NO. 45
"An Act extending the termination date of the Board of Dental
Examiners; and providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 68
"An Act relating to the division of labor standards and safety;
relating to the division of workers' compensation; establishing
the division of workers' safety and compensation; and providing
for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 45
SHORT TITLE: EXTEND BOARD OF DENTAL EXAMINERS
SPONSOR(s): REPRESENTATIVE(s) ORTIZ
02/20/19 (H) READ THE FIRST TIME - REFERRALS
02/20/19 (H) L&C, FIN
03/27/19 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 68
SHORT TITLE: LABOR STDRS/SAFETY; WORKER COMPENSATION
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/20/19 (H) READ THE FIRST TIME - REFERRALS
02/20/19 (H) L&C, FIN
03/27/19 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
REPRESENTATIVE DAN ORTIZ
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, presented HB 45.
DAVID NIELSON, Chair
Board of Dental Examiners
Department of Commerce, Community & Economic Development
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 45 and answered
questions from the committee.
KRIS CURTIS, Legislative Auditor
Division of Legislative Audit
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
45.
FRED PARADY, Legislative Liaison
Department of Commerce, Community & Economic Development
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
45.
CATHY MUNOZ, Deputy Commissioner
Department of Labor & Workforce Development
Juneau, Alaska
POSITION STATEMENT: Presented HB 68 and answered questions from
the committee.
GRAY MITCHELL, Director
Division of Workers' Compensation
Department of Labor & Workforce Development
Juneau, Alaska
POSITION STATEMENT: Presented the sectional analysis for HB 68
and answered questions from the committee.
TERRE GALES, Director
Division of Labor Standards and Safety
Department of Labor & Workforce Development
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
68.
DON ETHERIDGE
Alaska American Federation of Labor and Congress of Industrial
Organizations
Juneau, Alaska
POSITION STATEMENT: Testified during the hearing on HB 68.
ACTION NARRATIVE
3:18:29 PM
CO-CHAIR GABRIELLE LEDOUX called the House Labor and Commerce
Standing Committee meeting to order at 3:18 p.m. Representatives
Fields, Revak, Talerico, Hannan, Wool, and LeDoux were present
at the call to order.
HB 45-EXTEND BOARD OF DENTAL EXAMINERS
3:19:43 PM
CO-CHAIR LEDOUX announced that the first order of business would
be HOUSE BILL NO. 45, "An Act extending the termination date of
the Board of Dental Examiners; and providing for an effective
date."
3:20:31 PM
REPRESENTATIVE DAN ORTIZ, Alaska State Legislature, as prime
sponsor of HB 45, introduced the bill and read the following
sponsor statement [original punctuation provided]:
House Bill 45 extends the termination date for the
Board of Dental Examiners until June 30th, 2027. The
Board of Dental Examiners is composed of nine members:
six dentists, two dental hygienists, and one public
member.
Legislative Audit conducted their review of this board
and determined that "the audit concludes that the
board operated in the public's interest by effectively
licensing and regulating dentists, dental hygienists,
and dental assistants. The board monitored licensees
and worked to ensure only qualified individuals
practiced in Alaska. Furthermore, the board was active
in amending regulations to improve the industry. In
accordance with AS 08.03.010(c)(7), the board is
scheduled to terminate on June 30, 2019. We recommend
that the legislature extend the board's termination
date eight years to June 30, 2027."
The Board of Dental Examiners serves an important role
in adopting regulations to carry out the laws
governing the practice of dentistry and dental hygiene
in Alaska, and the continuation of this board will
ensure that high standards of dental care are offered
throughout the state.
3:22:21 PM
REPRESENTATIVE FIELDS recalled that when the Alaska Tribal
Health System (ATHS) implemented and expanded the Dental Health
Aide Therapist (DHAT) program there was some debate within the
dental community about the right way to regulate the program.
He asked if that was something the Board of Dental Examiners
oversees. He sought to clarify the board's current take the
DHAT program and the provision of dental care in tribal
settings.
3:23:02 PM
REPRESENTATIVE ORTIZ admitted that he was unable to answer that
question and deferred to David Nielson.
3:24:03 PM
DAVID NIELSON, Chair, Board of Dental Examiners, Department of
Commerce, Community & Economic Development, noted that he can't
speak for the entire board on the DHAT program; however, he
opined that the model seems to be working well in its current
form. He addressed an issue that had arisen about the DHAT
members not being licensed by the state, explaining that
although that's true, their education includes supervision by a
licensed dentist. He said that because they are not licensed by
the state it allows them to stay in the villages and clinics
where they are serving their population the best, adding that
the aforementioned tension in the dental community has
dissipated.
3:26:27 PM
CO-CHAIR WOOL commented that "it's nice to hear the programs
working and it's also nice to hear him say that the lack of a
state license is actually helped it work and maybe even added to
its success." He asked if that is correct.
MR. NIELSON clarified that it would be best to speak with the
tribal entities to determine the true impact of their program.
Nonetheless, he offered his understanding that if they were
licensed, [the DHAT members] would probably move to a higher
populated area where their work isn't needed as much.
3:27:51 PM
REPRESENTATIVE HANNAN referred the committee to page 7 of the
sunset review on the Board of Dental Examiners [included in the
committee packet] performed by the Division of Legislative Audit
(DLA). The page displayed an unaudited schedule of the board's
revenue and expenditures from FY 14 through March 31, 2018. She
noted that every other year they had a deficit and asked if that
was because licensures are two years at a time.
3:28:40 PM
KRIS CURTIS, Legislative Auditor, Division of Legislative Audit,
Answered yes. She said that with biannual licensing cycles it's
common to see revenues fluctuate every other year.
3:28:54 PM
REPRESENTATIVE HANNAN said she presumed that at the end of the
fiscal year any excess money that was accrued through licensures
rolls into the general fund and the following year they run a
deficit. She asked if that happens regularly with the state
boards.
3:29:29 PM
MS. CURTIS referenced a statute that states board fees must be
set at a level that covers board costs. She explained it's
reviewed every other year rather than on an annual basis. She
alleged hearing testimony that claimed a statute exists which
allows boards to carry balances forward; however, they do track
their deficits and surpluses and either one can last years. She
further noted that boards try to "tweak" those fees every other
year to approximate the cost of the occupation.
3:30:12 PM
REPRESENTATIVE HANNAN directed attention to the audit's second
recommendation: to implement controls to ensure the appropriate
entities are notified when a licensee's prescription authority
is suspended or revoked. She asked if action had been taken to
meet that recommendation.
3:31:11 PM
MS. CURTIS explained that there are two recommendations in the
audit. The first one is a recommendation to the board president
to correct regulation error. The second one is that the DCBPL's
chief investigator, in consultation with the board, should
implement controls to ensure the appropriate entities are
notified when a licensee's prescription authority is suspended
or revoked. She noted that, in response, the department stated
that they have implemented a policy to ensure those entities are
notified. She further noted that the board responded in
agreement to both recommendations and to taking corrective
action.
MS. CURTIS turned attention to the schedule of licensing
activity on page 6 of the audit. She noted that as of January
2018, the board had 2,399 active licensees.
3:33:26 PM
CO-CHAIR WOOL asked if a hygienist can get additional licensing
for local anesthetic.
3:33:50 PM
MS. CURTIS said that is her understanding and deferred the
question to Mr. Nielson.
3:34:04 PM
MR. NIELSON said that is correct. He explained that a hygienist
can have a local anesthetic permit or endorsement on their
license. He added that it is a separate permitting process.
3:35:41 PM
REPRESENTATIVE HANNAN, referencing the attached fiscal, asked if
this was a 50 percent reduction in the travel for the board to
conduct its work.
3:36:04 PM
FRED PARADY, Legislative Liaison, Department of Commerce,
Community & Economic Development, answered no, the 50 percent
reduction has not been taken. He said that cut is given to them
as a general cut across the department, which they can balance
at their discretion.
3:36:47 PM
CO-CHAIR LEDOUX opened public testimony.
3:37:09 PM
MR. NIELSON stated that the dental board serves as a vital role
in the regulation of dentistry while always keeping the health
and welfare of the Alaskan citizens in mind. Licensing,
permitting, certification, and disciplinary action when
appropriate, is a cornerstone of what the public should expect
from the state government if they are to have confidence in
their healthcare providers. He shared that personally, he has
enjoyed the challenge to serve and appreciated the opportunity
to continue fulfilling the board's purpose, adding that he was
in full support of moving HB 45.
3:38:15 PM
REPRESENTATIVE HANNAN mentioned that the previous board
president, Paul S, wrote a letter in response to the audit
regarding the finding about dentists who lost their pharmacy
rights, noting that it was to be discussed at the December 7,
2018 board meeting. She asked if Mr. Nielson was at that board
meeting and whether that topic was addressed by the board.
3:38:52 PM
MR. NIELSON replied that he was at the December meeting and
could not recall whether it was discussed.
3:40:49 PM
CO-CHAIR LEDOUX closed public testimony
[HB 45 was held over.]
HB 68-LABOR STDRS/SAFETY; WORKER COMPENSATION
3:41:17 PM
CO-CHAIR LEDOUX announced that the next order of business would
be HOUSE BILL NO. 68, "An Act relating to the division of labor
standards and safety; relating to the division of workers'
compensation; establishing the division of workers' safety and
compensation; and providing for an effective date."
3:42:11 PM
CATHY MUNOZ, Deputy Commissioner, Department of Labor &
Workforce Development, presented HB 68. She stated that this
bill combines two divisions within the Department of Labor &
Workforce Development (DLWD), the Division of Workers
Compensation (DWC) and the Division of Labor Standards and
Safety (DLSS). The DLSS is primarily focused on workplace
accidents and enforcing laws related to workplace safety. They
oversee wage and hour issues, mechanical inspections, and the
Alaska Occupational Safety and Health (AKOSH) program. The DWC
is focused on the efficient administration of benefits to
injured workers and enforcing laws related to the Alaska
Workers' Compensation Act [AS 23.30]. The missions of both
divisions are complementary, they have even worked together
historically. She reported that HB 68 will further increase
their opportunities to remove silos and capitalize on
efficiencies through a unified management structure. She
further noted that when Dr. Tamika Ledbetter was first appointed
as the department's commissioner her first directive was to
increase collaboration between divisions.
3:44:20 PM
CO-CHAIR LEDOUX asked for the meaning of "removing silos."
3:44:32 PM
MS. MUNOZ indicated that "removing silos" signifies
collaborating across divisions to enhance the services provided
to the Alaska public. An example, she said, is when
[Commissioner Ledbetter] directed the Job Center network to work
closely with Alaska Vocational Technical Center (AVTEC). She
stated that the department is cognizant of the responsibilities
of each division and there is no intent on changing either of
their missions.
3:47:02 PM
GRAY MITCHELL, Director, Division of Workers' Compensation,
Department of Labor & Workforce Development, began the sectional
analysis of HB 68. He addressed sections 1 through 6, which he
explained are name changes from the DLSS to the new division's
name, the Division of Workers' Safety and Compensation. Section
7 would repeal and reenact AS 23.05.067, service fees for
administration of workers' safety and compensation programs, to
reflect that the new division would receive reports of certain
workers' compensation payments. Section 8 would amend AS
23.10.080, powers and duties of the division, by adding a
paragraph to incorporate the workers' compensation duties that
would be administered by the new division. Section 9 through 14
are name changes from the DWC to the new division's name.
Section 15 repeals AS 23.30.002, Division of Workers'
Compensation; director. Section 16 is a transitional provision
to account for pending matters. Section 17 establishes a July
1, 2019 effective date.
3:53:35 PM
CO-CHAIR LEDOUX inquired as to the purpose of the current bill.
3:53:53 PM
MS. MUNOZ replied that the fiscal note speaks to the specific
changes.
3:54:02 PM
MR. MITCHELL explained that the main purpose of the current bill
is to combine two divisions that are currently under separate
administrations and integrating them so that enforcement actions
are better coordinated. He expressed hope that their
integration would produce a more efficient delivery of service
to the public.
3:55:20 PM
REPRESENTATIVE HANNAN directed attention to section 15, which
dissolved the director of the division of workers' compensation.
She asked if that position is currently filled and if that is
the only position that would be terminated.
3:56:24 PM
MR. MITCHELL stated section 15 repeals the authority to appoint
a director and moves those provisions under section 7 in the
current bill. He added that there is no current plan to
eliminate either director.
3:57:48 PM
MS. MUNOZ noted the director of labor standards and safety is an
unfilled position and the deputy director is the manager of
labor standards and safety and does all of the day to day
authority decision making that happens in that division, adding
that it is not their intent to change that.
3:59:10 PM
MR. MITCHELL explained the fiscal notes; Fiscal note 1; fiscal
note 2 is the labor standards and safety division fiscal note;
not laying any positions off but deleting 2
4:00:31 PM
CO-CHAIR LEDOUX asked where the savings come from if no one will
be laid off.
4:00:43 PM
MS. MUNOZ explained that it would result as a reduction to the
general fund support to the department.
4:00:54 PM
MR. MITCHELL said that the positions that would be eliminated by
the current bill would be the AKOSH program chief as well as the
assistant chiefs for both the Enforcement Section and the
Consultation and Training Section. He noted that this would be
an effort to flatten the management structure by eliminating a
position in middle management and having the deputy director
take a greater role in managing the AKOSH program overall.
4:01:51 PM
REPRESENTATIVE FIELDS asked if the AKOSH chief position is
partially exempt or fully exempt.
4:02:00 PM
MR. MITCHELL stated that it's a classified position.
4:02:12 PM
MR. MITCHELL stated that the other position that would be
affected is a vacant office assistant 2 position. The idea is
that an office assistant would be used to assist and assume that
position. He noted that there are two other efficiencies that
are planned. One is to reclassify the division of labor
standards and safety director position to the deputy director
position. The director is at a range 27 and the deputy director
is a range 25.
4:05:12 PM
REPRESENTATIVE FIELDS asked about the possibility of effectively
cross training the two positions to allow for flexibility.
4:05:28 PM
MR. MITCHELL replied there's no legal restriction against that
possibility; however, it's the silo issue "that crops up." He
offered his belief when there's two separate divisions operating
under separate leadership there is an automatic resistance.
4:06:36 PM
REPRESENTATIVE FIELDS sought to clarify the relative size of the
different divisions. He asked for the number of staff per
division.
4:07:01 PM
MS. MUNOZ answered approximately 700 positions in the Department
of Labor & Workforce Development.
4:07:18 PM
MR. MITCHELL, in response to Representative Fields, said there
is 51 positions in the Workers Compensation Division and
approximately 89 in the Labor Standards and Safety Division.
4:07:32 PM
REPRESENTATIVE FIELDS asked for the number of staff in the
Department of Labor & Workforce Development's other divisions.
4:07:47 PM
MS. MUNOZ replied she did not have those specific numbers at
this time and would follow up with the answer.
4:08:36 PM
REPRESENTATIVE FIELDS inquired as to the current number of
subdivisions within the Labor Standards and Safety Division and
AKOSH.
4:08:57 PM
MS. MUNOZ stated within the Labor Standards and Safety Division
there is the Alaska Occupational Safety and Health (AKOSH)
program, the Mechanical Inspection Section, and the Wage and
Hour Administration.
4:09:35 PM
MR. MITCHELL shared his understanding that the sections within
Workers' Compensation include the Adjudications Section, The
Fishermen's Fund, the Workers' Compensation Benefits Guaranty
Fund, the Second Injury Fund, the Special Investigations Unit,
the administrative unit, and the Reemployment Benefits Section.
4:10:37 PM
REPRESENTATIVE FIELDS restated his question, asking for the
number of staff within each section of the Labor Standards and
Safety Division.
4:10:54 PM
TERRE GALES, Director, Division of Labor Standards and Safety,
Department of Labor & Workforce Development, replied there are
20 in the Wage and Hour Administration, approximately 20 in the
Mechanical Inspection Section, and about 40 in the AKOSH
section.
4:11:12 PM
REPRESENTATIVE FIELDS asked, of the 40 in AKOSH, if they are
somewhat evenly divided between consultation and enforcement.
4:11:18 PM
MR. GALES offered his understanding that it's not exactly an
even split. He said there are "a couple more" staff in
enforcement than there are in consultation.
4:12:00 PM
REPRESENTATIVE FIELDS asked Mr. Mitchell how many hours per week
he's worked in general as the division director over the years.
4:12:19 PM
MR. MITCHELL said it varies. He estimated during legislative
session he works approximately 60-70 hours per week and during
the interim approximately 50 hours per week.
4:12:42 PM
REPRESENTATIVE FIELDS asked if there has been a similar workload
for the Labor Standards and Safety Division director.
4:12:55 PM
MR. MITCHELL answered yes.
4:13:00 PM
REPRESENTATIVE FIELDS validated that Mr. Mitchell and the other
directors of the effective divisions work "beyond normal" office
hours.
4:13:23 PM
CO-CHAIR LEDOUX opened public testimony on HB 68.
4:13:53 PM
DON ETHERIDGE, Alaska American Federation of Labor and Congress
of Industrial Organizations, on behalf of the Alaska AFL-CIO,
expressed concern that when two departments are combined, one
gets left behind. He opined that both divisions are very
important to Alaskans.
4:14:45 PM
REPRESENTATIVE HANNAN asked Mr. Etherdige to elaborate on his
concern.
4:15:38 PM
MR. ETHERIDGE explained the concern is that either department
could get left behind. He said there is concern about the Labor
Standards and Safety Division not being able to complete
inspections because they are already "short-handed." He stated
that Workers' Compensation is also an important division to the
AFL-CIO.
4:16:38 PM
REPRESENTATIVE TALERICO reflected on his personal (previous?)
experience in the private sector. He said there is probably and
opportunity to make incredible improvements to any type of state
safety program by having a closer merger with Workers'
Compensation and the safety department. He offered his belief
that having safety people directly connected to the details and
analysis of compensated injuries is the best way to develop a
far better safety culture and develop programs that improve the
safety of all the workers on site. He opined that combination
could make incredible improvements to an entire safety culture,
even statewide.
4:19:02 PM
REPRESENTATIVE FIELDS acknowledged he agrees with the premise
that the two divisions are complementary. He expressed concern
with the loss of the AKOSH chief, adding that it's more of a
technical professional position than the deputy commissioner,
which is more managerial and policy. He expressed concern with
the idea of permanently losing that ability to insure those
AKOSH functions are united.
4:20:42 PM
CO-CHAIR WOOL said he hopes that the projected savings and
efficiencies will be there. He suggested reevaluating this
after some time to see if it will be more streamlined and more
efficient or more work.
4:22:25 PM
REPRESENTATIVE HANNAN expressed curiosity as to whether the
Alaska DLWD have parallels in the federal government, adding
that state agency structures are frequently developed in
response to federal bureaucracy. She further noted that if it
is known where the injuries are happening then preventing them
is a cheaper and more efficient outcome; however, if it results
in a position going from 70 hours per week to 100 hours, it
probably isn't more efficient.
4:24:27 PM
CO-CHAIR LEDOUX sought clarification on the structure of the
division. She asked if, previously, there was both a director
and a deputy director position, and how long director position
had been vacant.
4:25:07 PM
MR. MITCHELL answered no, the deputy director position that's on
the books now is the same position that the director held in the
past - there was no deputy director position. He offered his
belief that in anticipation for this proposed merger, the person
appointed to head the DLSS was appointed as a deputy director to
avoid having to make adjustments in the future.
4:26:04 PM
CO-CHAIR LEDOUX inquired as to whether there would still be the
deputy director of Labor Standards and Safety who is now acting
as the director doing that work.
4:26:51 PM
MR. MITCHELL answered that's exactly right. He offered a "sneak
peak" into their plan, which is to establish an operational
managerial control over all the enforcement functions within the
combined divisions; primarily that's currently within Labor
Standards and Safety (wage and hour, mechanical inspection,
occupational safety and health). Added to that would be the
special investigations unit that's currently in Workers'
Compensation. He said the deputy director would focus on the
operational management of those enforcement inspection type
related functions, while the director would focus on the overall
administrative issues, the adjudication functions in the
division of Workers' compensation, as well as the benefit
programs and providing support to the deputy director. He opined
that the workload wouldn't necessarily change because there will
still be two leaders in place, adding that producing a joint
leadership team creates unification that could overall provide
better service with the combined divisions.
4:29:17 PM
CO-CHAIR LEDOUX expressed uncertainty that this would be a good
idea. She stated that it looks like there would be savings of
283,000 dollars; however, if there used to be a director instead
of the deputy director and the deputy director is functioning as
the director does it really save anything by taking away the
director position.
4:30:05 PM
MR. MITCHELL said the savings associated with reclassifying the
director position to a deputy position are minimal, adding that
makes up approximately 10,000 of the 283,000 dollars. He stated
the big savings comes from flattening the management structure
in Occupational Safety and Health, noting that almost 200,000
dollars of the total comes from that position alone. He said it
depends on the thought process; whether there needs to be a lot
of people overseeing a program for efficiency or to streamline
things from a management perspective. He noted that there will
still be leadership in both main programs within Occupational
Safety and Health and if things start to go awry with either of
those positions then adjustments can be made.
4:32:27 PM
CO-CHAIR LEDOUX announced HB 68 was held over.
4:32:46 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
[4:32] p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 45.Sponsor Statement.pdf |
HL&C 3/27/2019 3:15:00 PM HL&C 4/1/2019 3:15:00 PM |
HB 45 |
| HB 45.Bill Version A.PDF |
HL&C 3/27/2019 3:15:00 PM HL&C 4/1/2019 3:15:00 PM |
HB 45 |
| HB 45.Fiscal Note DCCED.pdf |
HL&C 3/27/2019 3:15:00 PM HL&C 4/1/2019 3:15:00 PM |
HB 45 |
| HB 45.Backup Sunset Review.pdf |
HL&C 3/27/2019 3:15:00 PM HL&C 4/1/2019 3:15:00 PM |
HB 45 |
| HB 68.Bill Version A.PDF |
HL&C 3/27/2019 3:15:00 PM |
HB 68 |
| HB 68.Transmittal Letter.pdf |
HL&C 3/27/2019 3:15:00 PM |
HB 68 |
| HB 68.Sectional.pdf |
HL&C 3/27/2019 3:15:00 PM |
HB 68 |
| HB 68.Fiscal Note.PDF |
HL&C 3/27/2019 3:15:00 PM |
HB 68 |
| HB 68.Fiscal Note 2.PDF |
HL&C 3/27/2019 3:15:00 PM |
HB 68 |
| HB 68.Backup Merger Request.pdf |
HL&C 3/27/2019 3:15:00 PM |
HB 68 |