Legislature(1999 - 2000)
04/10/1999 10:06 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES SENATE FINANCE COMMITTEE April 10, 1999 10:06 AM TAPES SFC-99 #85, Sides A and B CALL TO ORDER Co-Chair John Torgerson convened the meeting at approximately 10:06 A.M. PRESENT In addition to Co-chair Torgerson, Senators Sean Parnell, Randy Phillips, Loren Leman, Gary Wilken, Al Adams and Lyda Green were present when the meeting was convened. Also Attending: REPRESENTATIVE JEANNETTE JAMES; REPRESENTATIVE ELDON MULDER; REPRESENTATIVE BILL HUDSON; REPRESENTATIVE CARL MORGAN; CATHERINE REARDON, Director, Division of Occupational Licensing, Department of Commerce and Economic Development; FRANK MIELKE, Chief, Right-of- Way, Department of Transportation and Public Facilities; JOHN WRAY, Alaska Dietetic Association; LINDA WILD, Nutritionist; DIANE BARRANS; Executive Director, Post Secondary Education Commission, Department of Education; JOHN BITNEY, Alaska Housing Finance Corporation, Department of Revenue; aides to committee members and other members of the Legislature. Attending via Teleconference: SUMMARY INFORMATION Co-chair Torgerson convened the meeting at approximately 10:12 a.m. He noted that Senator Donley was not present so the committee would first take up HB 12. HOUSE BILL NO. 12 "An Act relating to an easement for the extension of the Alaska Railroad to the Alaska-Canada border." SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 12 "An Act relating to a utility corridor and railroad right-of-way between the Alaska Railroad and the Alaska-Canada border." CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 12(FIN) "An Act relating to a utility corridor and railroad right-of-way between the Alaska Railroad and the Alaska-Canada border." CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 12(FIN) am "An Act relating to a utility corridor and railroad right-of-way between the Alaska Railroad and the Alaska-Canada border." Representative JEANNETTE JAMES was invited to join the committee. She explained HB 12 and explained her sponsor statement. (Arrival of Senator Donley noted at approximately 10:14 a.m.) Representative James continued her statement before the committee. She explained the outline of the corridor. It was a very simple matter. She said advantages to Alaska were obvious: resource development, tourism, job opportunities for all areas of Alaska, with controlled access and without the expensive maintenance problems of other modes of transportation. In response to a question from Senator Leman she said there should be no fiscal note. FRANK MIELKE, Chief of Right-of-Way, Department of Transportation was invited to join the committee. He explained why the route was chosen. It was a matter of putting it on the Department of Natural Resources records. It will be noted that this procedure was not under the normal statutes. Co-chair Torgerson said the right-of-way was not to be less than five feet. Was this correct? Mr. Mielke said this right-of-way allotment was proper in this particular case. It was a typical practice to have an extra wide right-of- way and then taper it down. Senator Adams referred to some costs that may arise in the future. Mr. Mielke said regardless of who actually does the work or spends the money the funding would come through the railroad. Senator Adams asked if this was stated anywhere in the bill? Mr. Mielke said "no". Representative James explained to the committee that the bill notes "other interested parties". Senator Parnell MOVED HB 12 and WITHOUT OBJECTION it was reported out with individual recommendations and accompanying fiscal notes; Department of Transportation and Public Facilities, zero and the Department of Natural Resources, zero. Co-chair Torgerson called SB 88. SENATE BILL NO. 88 "An Act relating to licensure of dietitians and nutritionists; and providing for an effective date." CS FOR SENATE BILL NO. 88(L&C) "An Act relating to licensure of dietitians and nutritionists; and providing for an effective date." Senator Donley briefly explained the legislation. He said there was a zero fiscal note and no impact on the State. At the request of the department he explained the two changes from version "M" and version "K". JOHN WRAY, Bartlett Memorial Hospital was invited to join the committee. He represented the American Dietitians Association. Further, he thanked Senator Donley for introducing this bill. Senator Phillips voiced his concern regarding the bill. (Arrival of Senator P. Kelly at approximately 9:24 a.m.) Senator Parnell asked that Senator Phillips ask one question at a time. Senator Phillips continued voicing the concern of his constituents. Consumers said they could go to the American Dietitian Association; and there were further concerns for the exemptions on page three. Those included: no money to police the bill, no enforcement, creating another bureaucracy; should be a grandfather clause; exemption on page three, line twenty. Those were the main concerns. Mr. Wray asked if they were all a concern? Senator Donley asked the concern for exemptions? Mr. Ray responded. He said he could answer most of the concerns. The CS has gone through a lot of rewrite. He wrote the original bill after a lot of research. The American Dietetic Association was satisfied with this bill. A situation was created where they would have to pay $668 every two years to be licensed. They felt this was not going to work. (Teleconference connection temporarily cut.) After statutes are written from the A.G.'s office the licensing process will be renewals and therefore the costs will go down. He said this was the "price of doing business". Occupational licensing has said they can deal with this matter and it would not cause an increase of their staff. There was confusion about the status of two classes of dietitians. He clarified for Senator Phillips that there are things a nutritionist does that a dietitian does not. Currently, there was no professional organization equivalent for nutritionists. (Teleconference reconnected.) Mr. Wray continued. It was not the intent of this bill to put people out of work. Therefore, it does not include a "grandfather clause". Personally, he has been member of the American Dietetic Association for seventeen years. He does not recall if there are by-laws that would cause concern that ADA could revoke anyone's license. However, he could not answer this question directly. Regarding the exemptions, the original bill had thirteen. The rationale for this is straightforward. For example, he referred to military individuals being stationed somewhere for a two-year period. Almost all licensure bills in the U.S. exempt military individuals. He noted for the committee that probably everyone would not be happy with this bill. Senator Phillips said he thought the original idea of this bill was for consumer protection. Co-chair Torgerson asked if there was anything in the bill regarding military services and being exempt. Mr. Wray said that Elmendorf Air Force base has two dietitians on staff that are military. He does not believe that if one got out of the military they would still have to apply for a license. However, Mr. Wray said he would look into this and get the correct information back to the committee. Co-chair Torgerson said he appreciated that because it would have to be fixed. Senator Green questioned about dietitian licensure, page two of version "M". Mr. Wray advised that there was no internship for nutritionists. Senator Green asked about qualifications. Mr. Wray asked if this was with respect to nutritionists? Senator Green said it was on page two, lines fifteen through seventeen. Mr. Wray explained the way the qualifications system worked. There are five or six individuals around the state providing valuable services for the State of Alaska and they should be recognized. Senator Green said there should be a fiscal note on the anticipated costs for Medicare. This was a concern for her. Co-chair Torgerson concurred. He requested the department be available to answer these questions. Mr. Wray said there was not a provision within Medicare for nutrition therapy to be reimbursed. There was a well- established but limited criteria for Medicaid, however, to his knowledge nothing for Medicare. Senator Green said if there is reimbursement being anticipated at some time they should be made aware of it and plan for it now. Senator Leman asked if 900 hours of work experience represented a year of work? According to his calculations it was really about half a year. Mr. Wray stood corrected. LINDA WILD, Nutritionist was invited to join the committee. She identified herself as being a nutritionist licensed in Washington State. She gave her money each year because licensed recognition was important and gave one professional credentials. People feel comfortable knowing that the particular individual has met certain criteria in their field. She felt that dietitians and nutritionists should be put on the same field as other health care individuals. With regards to the two classes, both dietitians and nutritionists should be recognized. They both must have the necessary work experience. In response to a query from Co-chair Torgerson she said she paid $200 bi-annually to Washington State. She explained that she was on her way to becoming a registered dietitian. Senator Green commented briefly. Ms. Wild said she was a certified nutritionist in the State of Washington. Senator Green asked about her qualifications as related to Alaska. Ms. Wild said because she was qualified in Washington State she was able to "walk" into her position in Alaska. She referred to "midwives" and explained the terms for certification or licensing were basically the same. CATHERINE REARDON, Director, Division of Occupational Licensing, Department of Commerce and Economic Development was invited to join the committee. Co-chair Torgerson asked why this fiscal note was so expensive. Ms. Reardon said the original cost was $28,000/year. She referred to her explanation of the costs. One thing she left out was investigative time. She expected the costs to slow down as time passed. Senator Phillips asked if anyone from the Department of Health and Social Services was available to answer any questions. Ms. Reardon said she was not aware of anyone present. Senator Phillips had question for Medicare and Medicaid. He wanted to know the potential costs. Co-chair Torgerson felt there needed to be work done on the "grandfather" clause and other possible amendments. Senator Donley said he would try to make changes more clear. (Tape #85 switched to Side B at log number 597.) Co-chair Torgerson HELD SB 88 in committee. He then called HB 27. HOUSE BILL NO. 27 "An Act relating to graduate student loans; and providing for an effective date." CS FOR HOUSE BILL NO. 27(HES) "An Act relating to financial aid received for medical education and financial aid received by students participating in the Western Interstate Commission on Higher Education Professional Student Exchange Program; relating to the Western Regional Higher Education Compact; and providing for an effective date." REPRESENTATIVE ELDON MULDER was invited to join the committee. He thanked the committee for hearing HB 27 and explained that it was a simple bill. It would allow Alaska students opportunities or access to special "slots" through use of the Alaska Student Loan program. As he said, the bill would allow the holding of slots within WITCHIE for Alaska students. It would be a full loan repayment plan. The biggest concern is one of access. These are professional fields, which are very competitive to get into. These included for example, dentistry, which were not available at the University of Alaska. And it would be too expensive to establish these degree programs at the University. The bill would allow for slots to be held for Alaskan students. He referred to a letter written from a woman from Wasilla. (read into the record) He felt that the letter explained the situation completely for Alaskan students. Further, passage of the bill would help to correct these difficulties. At this time Representative Mulder passed out an amendment which he said was a technical correction. Co-chair Torgerson asked him to explain this. (No number was issued for this amendment at this time.) Amendment #1 was MOVED by Senator Wilken. Representative Mulder asked that Diane Barrans to be invited to join the committee to explain the amendment. DIANE BARRANS, Executive Director, Post Secondary Education Commissioner, Department of Education was invited to join the committee. Co-chair Torgerson asked her to explain amendment #1, specifically section two. Senator Green asked about section 1 of the bill, the HES version. "Are we just bringing WITCHIE back?" Ms. Barrans explained "WAMI" and "WITCHIE". Senator Green asked the sections of the bill to be identified where these slots would fit in. Representative Mulder said they would come under section three. Ms. Barrans referred again to the amendment. Senator Green asked if the WITCHIE program was being repealed? Ms. Barrans indicated that was correct. Senator Leman asked if there were slots in other states that were given to their residents. He further asked if our students, through the WITCHIE compact, would have the same priority? Ms. Barrans said at the time when we were participating and funding slots that was true. But since the program was no longer funded to include these slots and that the State no longer participated in the programs that was no longer true. Senator Adams asked if in looking at the slots for Alaska students, was there any benefit to the State versus a student paying out-of-state tuition? Ms. Barrans said generally not. Support fee was more than the differential for non-resident tuition. In some other cases it was less. It would all depend on the fee schedule for the degree program. There could be some minor economical benefit, however, the major benefit was that the student would get considered. Senator Donley said he did not understand how forgiveness bought more seats at a university? "We have to buy seats for students applying to the program?" Ms. Barrans asked the question be repeated. Senator Donley asked if we were buying our way into the WITCHIE program? Ms. Barrans indicated that was correct. She explained that the exchange program required states to pay an additional cost in advance. The schools have to know that the money will be available. Ms. Barrans explained the bottom line of the fiscal analysis. It was not an appropriated item, however. Senator Donley asked about the fee being paid. Representative Mulder said the student would not only pay the loan but the slot fee. Senator Donley said there was a special component already in the medical WITCHIE program. Ms. Barrans replied that the students would be incurring about $200,000 debt. Senator Donley asked if the bill would take money from the existing users of the loans to sign at universities for slots for Alaskans? Ms. Barrans said they would just reactivate their status in the program. Senator Donley referred to page two of the bill, WAMI. Where is the repayment program in the bill? Ms. Barrans said it was in the amendment. Senator Donley said he needed more clarification of the amendment. Senator Green asked about changes to the student loan program dealt with about two to three years ago. Is there a ceiling? Ms. Barrans said a cap could not really be put in because they are renegotiated each year. At present, the cap for an undergraduate is $60,000. Senator Wilken asked the total amount of loans to be put out this year. She responded about $69 million. Senator Wilken said this year they recorded a profit. Would this piece of legislation cause a negative impact on this profit? She did not expect so. Senator Donley asked how much a non-WAMI student could borrow? Ms. Barrans responded that the amount was $9,500/year. Senator Donley said there used to be a line item in the budget to pay for WAMI. Would this bill cover the line item effect of previous? Would the department make decision as to what slots were purchased? Senator Donley also asked about medical school? He was concerned that an undergraduate would have maxed out their capacity to borrow. Senator Parnell asked about the $9,500/year borrowing capacity. Ms. Barrans explained this. Senator Parnell asked if there was a medical student loan program only? Ms. Barrans said there was no special loan program. WITHOUT OBJECTION amendment #1 was ADOPTED. Co-chair Torgerson took a brief at ease at approximately 11:31 a.m. Senator Wilken MOVED SCS CSHB 27(FIN) and WITHOUT OBJECTION it was REPORTED OUT with individual recommendations and accompanying fiscal note from the Department of Education, indeterminate amount. Co-chair Torgerson called HB 10. HOUSE BILL NO. 10 "An Act extending the termination date of the Board of Certified Direct-Entry Midwives; and providing for an effective date." Representative Bill Hudson was invited to join the committee. He was willing to answer any questions of the committee. Senator Parnell MOVED HB 10 and WITHOUT OBJECTION it was REPORTED OUT with individual recommendations and accompanying fiscal note from the Department of Commerce and Economic Development, zero. Co-chair Torgerson called HB 71. HOUSE BILL NO. 71 "An Act relating to regional housing authorities." CS FOR HOUSE BILL NO. 71(CRA) "An Act establishing Kawerak, Inc., as the regional housing authority for the area that includes the Seward Peninsula, Unalakleet, and St. Lawrence Island." JOHN WALSH, staff to Representative Foster was invited to join the committee. He explained the bill and briefly referred to the sponsor statement. Senator Parnell referred to an e-mail from one of his constitutents. There was concern the title might be misleading. Senator Parnell MOVED HB 71 and WITHOUT OBJECTION it was REPORTED OUT with individual recommendations and accompanying fiscal note number 1 from the Department of Commerce and Economic Development in the amount of zero. Co-chair Torgerson took a brief at ease at approximately 11:45. He reconvened the meeting again at approximately 11:50 a.m. He called HB 93. HOUSE BILL NO. 93 "An Act relating to the Alaska Housing Finance Corporation's rural assistance loan program and to the definition of 'housing' for purposes of the corporation's housing assistance loan program; and providing for an effective date." Representative CARL MORGAN was invited to join the committee. Said he was going to address the bill in Yupik as it could not be translated into English. He read his complete sponsor statement into the record. (Tape change to #86, side A at approximately noon. Teleconference was being reconnected and there is no tape recording of the meeting for a short period of time.) JOHN BITNEY, AHFC, Department of Revenue was invited to join the committee. He said they supported the bill as currently drafted. Senator Phillips asked the history of the bill. Mr. Bitney said the rural program existed over at the Department of Community and Regional Affairs and was merged into Alaska Housing in 1992. The aspects of the program are delineated by statute and tied to IRS regulations. In this case, at the time the program was set up, the rates were too high and the term "refinance" was not known. He explained conventional tax program. (Teleconference was reconnected.) Co-chair Torgerson took a brief at ease at approximately 12:05 p.m. Teleconference individuals advised they were available to observe only. Co-chair Torgerson said he would HOLD this bill and work with the sponsor and AHFC. ADJOURNMENT Co-chair Torgerson adjourned the committee at approximately 12:10 p.m. SFC-99 (12) 04/10/99
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