Legislature(2013 - 2014)SENATE FINANCE 532
04/14/2014 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB239 | |
| HB240 | |
| HB241 | |
| HB242 | |
| HB234 | |
| HB210 | |
| HB378 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 239 | TELECONFERENCED | |
| + | HB 240 | TELECONFERENCED | |
| + | HB 241 | TELECONFERENCED | |
| + | HB 242 | TELECONFERENCED | |
| + | HB 234 | TELECONFERENCED | |
| + | HB 210 | TELECONFERENCED | |
| + | HB 378 | TELECONFERENCED | |
| + | HB 75 | TELECONFERENCED | |
| += | SB 220 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
April 14, 2014
9:10 a.m.
9:10:10 AM
CALL TO ORDER
Co-Chair Meyer called the Senate Finance Committee meeting
to order at 9:10 a.m.
MEMBERS PRESENT
Senator Kevin Meyer, Co-Chair
Senator Anna Fairclough, Vice-Chair
Senator Click Bishop
Senator Mike Dunleavy
Senator Lyman Hoffman
Senator Donny Olson
MEMBERS ABSENT
Senator Pete Kelly, Co-Chair
ALSO PRESENT
Representative Lora Reinbold; Crystal Koeneman, Staff,
Representative Lora Reinbold; Kris Curtis, Director,
Division of Legislative Audit; Sara Chambers, Director,
Division of Corporations, Business, and Professional
Licensing, Department of Commerce, Community and Economic
Development; Representative Mike Hawker; Representative
Charisse Millet; Vasilios Gialopsos, Staff, Representative
Charisse Millett; Rebecca Rooney, Staff, Representative
Peggy Wilson; Amy Erickson, Director, Division of Motor
Vehicles, Department of Administration.
PRESENT VIA TELECONFERENCE
Leanne Carrothers, Alaska Physical Therapy, Anchorage; T.W.
Patch, Chairman, Regulatory Commission of Alaska,
Nashville; Christie Reinhardt, Governor's Council On
Disabilities and Special Education, Anchorage; Jeanne
Gerhardt-Cyrus, Self, Kiana; Mark Regan, Director,
Disability Law Center, Anchorage; Aves Thompson, Executive
Director, Alaska Trucking Association, Anchorage.
SUMMARY
SB 220 PERS/TRS STATE CONTRIBUTIONS
SB 220 was SCHEDULED but not HEARD.
CSHB 75(FIN)
CONTRIBUTION FROM PFD: AUDITS; UNIVERSITY
CSHB 75(FIN) was SCHEDULED but not HEARD.
CSHB 210(FIN)am
SCHOOLS: RESTRAINT, SECLUSION, CRISIS TRG
CSHB 210(FIN)am was HEARD and HELD in committee
for further consideration.
HB 234 EXTEND REGULATORY COMMISSION OF ALASKA
HB 234 was HEARD and HELD in committee for
further consideration.
HB 239 EXTEND BOARD OF EXAMINERS IN OPTOMETRY
HB 239 was HEARD and HELD in committee for
further consideration.
HB 240 EXTEND BOARD OF CHIROPRACTIC EXAMINERS
HB 240 was HEARD and HELD in committee for
further consideration.
HB 241 EXTEND BOARD OF MARITAL & FAMILY THERAPY
HB 241 was HEARD and HELD in committee for
further consideration.
HB 242 EXTEND PT & OCCUPATIONAL THERAPY BOARD
HB 242 was HEARD and HELD in committee for
further consideration.
CSHB 378(TRA)
MOTOR VEHICLES: REGISTRATION, COMMERCIAL
CSHB 378(TRA) was HEARD and HELD in committee for
further consideration.
HOUSE BILL NO. 239
"An Act extending the termination date of the Board of
Examiners in Optometry; and providing for an effective
date."
9:11:32 AM
REPRESENTATIVE LORA REINBOLD, explained that HB 239 would
extend the Board of Examiners in Optometry through June 30,
2022. The Division of Legislative audit reviewed the
activities of the board and concluded that the board's
termination date should be extended the full 8 years.
Without the extension optometry licensing would continue
under the direction of the division, rather than the board
and all costs associated with licensing would continue to
be incurred by the division. She explained that the board
adopted regulations to carry out laws governing the
practice of optometry in Alaska; making final licensing
decisions and taking disciplinary action when necessary.
The board consisted of 4 optometrists and 1 public member.
She spoke to the fiscal note reflected that the board had a
current cumulative deficit of $44,755. Fees were raised
during the last biennium and a fee analysis would be
conducted in spring of 2014 in order to determine whether
the fees needed adjustment. She stated that licensees would
renew in December 2014 and any fee adjustments would go out
for public comment in summer 2015. She noted that the board
was working in the best interest of the state to promote
health, welfare and safety of Alaskans.
9:13:45 AM
Co-Chair Meyer queried the deficit reflected in the fiscal
note.
9:14:15 AM
Vice-Chair Fairclough announced that there was an issue of
indirect costs of investigations, spread across all the
professional licensing boards. She stated the division had
come before Legislative Budget and Audit (LB&A) in the past
requesting help with accounting issues, which resulted in
LB&A infusing approximately $1 million in an attempt to
assist the various boards with large deficits. She shared
that the deficit would be seen in fiscal notes for many of
the boards and that LB&A was working to understand how the
department was spreading costs. She said that $64 of
indirect cost was being spread to every licensee across the
state and the subcommittee of LB&A had yet to receive the
necessary information to justify the spread. She noted that
cost spreading among licensing boards was currently not
proportionate.
9:16:02 AM
Representative Reinbold noted that a report from the
Legislative Budget and Audit Committee (LB&A) (copy on
file) that outlined the specifics could be found in member
packets.
9:16:36 AM
Senator Olson queried why the investigation driven increase
in licensing fees should be extended out 8 years, rather
than a shorter amount that would reign in the expenditures
more quickly.
Representative Reinbold deferred the question to the
Division of Legislative Audit.
Senator Olson asked how many optometrists were licensed in
the state, and of those how many had been investigated
under licensing action.
9:17:38 AM
CRYSTAL KOENEMAN, STAFF, REPRESENTATIVE LORA REINBOLD,
deferred to Department of Commerce, Community and Economic
Development.
9:17:58 AM
Senator Olson asked whether other healthcare providers were
governed by the optometrist board.
Representative Reinbold replied that the board was limited
to the scope of optometry.
9:18:55 AM
KRIS CURTIS, DIRECTOR, DIVISION OF LEGISLATIVE AUDIT,
explained that the division had conducted a review of the
Board of Examiners in Optometry to determine whether the
public interest was being served and whether the board
should be extended. The division concluded that the board
was serving the public interest by effectively licensing
and regulating optometrists and recommended that the
board's termination date be extended the maximum 8 years,
June 30, 2022. The division made one recommendation to the
Director of the Division of Corporations, Business and
Professional Licensing to continue efforts to improve their
case management system integrity and confidentiality. She
furthered that in past years detailed information about
investigations had been included in audits, but that the
practice had been disregarded because the case management
system was not reliable. The division had been unable to
pull summary investigative information because certain
information in the system was unreliable. She noted that
Page 12 of the audit provided information on board
expenditures and revenues. The licensing fees had been
reduced from $420 to $200 in FY07. That decrease had
effectively reduced any available surplus at that time.
Licensing fees had not been adjusted for the FY11 renewal
period which had contributed to a continuing deficit. She
stated that she could not speak to the reason why the fees
had not been increased.
9:21:06 AM
Senator Olson wondered whether the licensing fee had been a
factor in whether the number of optometrists in the state
was increasing or decreasing.
Ms. Curtis directed committee attention to page 14, which
listed the information on the licensees. From FY06 through
FY12 the board had issued new licenses to 85 applicants.
9:21:37 AM
Senator Olson asked how many licenses were withdrawn or not
renewed.
Ms. Curtis replied that the information was not presented
in the report. She said that a count as of February 28,
2013 there were 174 licensed optometrists in Alaska. She
noted the chart in the report that allocated the new
licenses by fiscal year. She said that the impact of the
setting of fees on the surplus and deficit was examined
every time the division performed a sunset audit. The
division did not issue a recommendation to adjust fees due
to the fact that they had been adjusted for the FY13 cycle
and that that period was not over; therefore, the division
could not gauge how effective the increase in fees was to
address the deficit.
9:22:36 AM
Senator Olson noted that there were only 174 licensees that
were regulated by the board and pointed out that other
boards in the state dealt with several thousand licensees.
He wondered whether the optometrist board could be absorbed
by one of the larger boards.
Ms. Curtis replied that the decision would be a policy call
that would not be made by the division.
9:23:21 AM
Vice-Chair Fairclough stated that the issue of cost being
spread over a small group of people would arise during all
of the licensing hearings. She said that the policy
discussion at LB&A concerned what should be done with
investigations and the cost distribution.
Ms. Curtis added that in 1992 the governor had a task force
to examine boards and commissions, and out of that task
force the structure of allocating investigative costs to
the board came about. She felt that after 20 years
structure should be revisited.
9:25:29 AM
Co-Chair Meyer asked how much the fees for the board were.
SARA CHAMBERS, DIRECTOR, DIVISION OF CORPORATIONS,
BUSINESS, AND PROFESSIONAL LICENSING, DEPARTMENT OF
COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, responded
that the fees were raised in 2013 to $400.
9:25:48 AM
Co-Chair Meyer asked if the amount was adequate to cover
costs going into the future.
Ms. Chambers responded that the department analyzed fees
according to statutory requirements and with the
partnership of the board with the goal of balancing
approximate expenditures and revenues. She believed that
$400 was a reasonable amount to anticipate covering future
deficit.
9:27:01 AM
Co-Chair Meyer OPENED public testimony.
Co-Chair Meyer CLOSED public testimony.
HB 239 was HEARD and HELD in committee for further
consideration.
HOUSE BILL NO. 240
"An Act extending the termination date of the Board of
Chiropractic Examiners; and providing for an effective
date."
9:28:08 AM
Representative Reinbold explained that HB 240 would extend
the termination date of the Board of Chiropractic Examiners
to June 30, 2022. The Division of Legislative Audit
reviewed the activities of the board and concluded that the
board's termination date should be extended the full 8
years. Without the extension the chiropractic license would
continue under the direction of the division, rather than
the board. The board made final licensing decision and took
disciplinary actions with person who violated licensing
laws. The board consisted of 4 licensed chiropractic
physicians and 1 public member. In FY13 there were 514
licensees. She pointed out to the committee that the fiscal
notes reflected that in FY13 the revenue of the board was
$179,215, expenditures were $168,800. The board had a
current cumulative surplus of $80,344. Licensing fees for
the board had been set consistent with statute and the
board was operating with the best interest of the public to
protect and promote the public health, welfare and safety
of Alaskans.
9:30:10 AM
KRIS CURTIS, DIRECTOR, DIVISION OF LEGISLATIVE AUDIT,
testified that the division conducted an audit of the board
to determine whether the public's interest was being served
and whether the sunset should be extended. The audit
concluded that the board was serving the public's interest
by effectively licensing and regulating chiropractors. She
stated that the division recommended the full 8 year
extension. The division had 2 audit recommendations for
improving board operations; first, to the Office of the
Governor, to ensure the statutory requirements for board
members were met before appointment. It had been found that
the current public member was a licensed pharmacist, yet
statute prohibits the public member from having a direct
financial interest in the healthcare industry. The second
recommendation was to the Director of the Division of
Corporations, Business and Professional Licensing to
improve the case management systems integrity and
confidentiality.
9:31:40 AM
Co-Chair Meyer noted that the board maintained a surplus
and that the fees had gone down since FY07. He wondered if
the fee would lessen in the future.
SARA CHAMBERS, DIRECTOR, DIVISION OF CORPORATIONS,
BUSINESS, AND PROFESSIONAL LICENSING, DEPARTMENT OF
COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, responded
that if the board maintained a surplus position the
department would attempt to lower the fees.
Co-Chair Meyer OPENED public testimony.
Co-Chair Meyer CLOSED public testimony.
9:34:03 AM
Co-Chair Meyer spoke to the fiscal note.
HB 240 was HEARD and HELD in committee for further
consideration.
HOUSE BILL NO. 241
"An Act extending the termination date of the Board of
Marital and Family Therapy; and providing for an
effective date."
9:34:57 AM
Ms. Reinbold stated that HB 241 would extend the
termination date of the board of Marital and Family Therapy
to June 30, 2018. She stated that the Division of
Legislative Audit reviewed the activities of the board and
concluded that the board's termination date should be
extended 4 years. If the board was not extended martial and
family therapy licensing would continue under the direction
of the division, rather than the board. The board consisted
of 3 marital and family therapists and 2 public members. In
FY13 there were 111 licensees. She noted the biennial data
for FY13 reflected in the fiscal note showed expenditures
of $85,187 and revenues of $63,165. The board had a current
ending surplus of $112,195. She stated that fees had been
lowered during the last biennium and a fee analysis would
be conducted in spring of 2014 to determine whether fees
needed to be adjusted. Licensees would renew in December
2014, and any fee adjustments would go out for public
comment.
9:36:34 AM
Co-Chair Meyer asked how long the board had existed.
Representative Reinbold deferred the question to Department
of Commerce, Community and Economic Development.
9:37:12 AM
KRIS CURTIS, DIRECTOR, DIVISION OF LEGISLATIVE AUDIT,
stated that LB&A did a sunset review audit of the board.
The audit concluded that the board was serving the public
interest by effectively licensing and regulating marital
and family therapists. The audit recommended that the
board's termination date be extended 4 years; half of the
statutory maximum. The reduced extension recommendation was
mainly due to the board not fully addressing the prior
sunset audit recommendation to pursue regulation changes
that are necessary to protect the public interest. Although
the board had initiated one regulatory change, it had not
addressed the need for distance therapy or distance
supervision. The audit recommended that the board develop a
strategy to address the need for distance supervision. The
audit included 2 additional recommendations; to the Office
of the Governor and the board to work together to fill
vacant board seats in a timely manner and to the Division
of Corporations, Business and Professional Licensing to
continue efforts to improve case management systems
integrity and confidentiality.
9:38:33 AM
Co-Chair Meyer noted the consistent theme in the audits of
the recommendation of case management system integrity and
confidentiality.
Ms. Curtis responded that the recommendation had been
showing up in sunset audits for the past two years because
the system had been replaced in 2010 and had not gone well.
Conversion, reporting and case efficiency problems had all
been discovered.
9:39:06 AM
SARA CHAMBERS, DIRECTOR, DIVISION OF CORPORATIONS,
BUSINESS, AND PROFESSIONAL LICENSING, DEPARTMENT OF
COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, spoke to the
e issue. She stated that the division had been working
diligently to be responsive to the audit concerns and the
belief was that a stable point with the current contractor
had been reached. She stressed that continuing strategies
would be examined into the future and that the issue should
not be an audit concern in 2015.
Co-Chair Meyer OPENED public testimony.
Co-Chair Meyer CLOSED public testimony.
9:40:26 AM
Vice-Chair Fairclough remarked that LB&A would work with
the division in order to examine surpluses and deficits
pertaining to licensing boards. She said that the
department was acting within legislative parameters to
apply the licensing fees. She noted that investigations
seemed to be triggering some of the shortfalls.
HB 241 was HEARD and HELD in committee for further
consideration.
HOUSE BILL NO. 242
"An Act extending the termination date of the State
Physical Therapy and Occupational Therapy Board; and
providing for an effective date."
9:41:46 AM
Representative Reinbold explained that HB 242 would extend
the termination date of the Physical Therapy and
Occupational Therapy Board to June 30, 2022. She stated
that the Division of Legislative Audit reviewed the
activities of the board and found that it should be
extended for the full 8 years. She said that if the board
was not extended the licensing would continue under the
direction of the division, rather than the board. The board
consisted of 1 physician, 3 physical therapists or physical
therapy assistants, 2 occupational therapists or occupation
therapy assistants and 1 public member. The work of the
board was to adopt regulations and carry out laws governing
physical and occupational therapy in Alaska. The board made
final licensing decisions and took disciplinary action
against people who violated licensing laws. In FY13 there
were 913 licensees. In FY13 the biennium data showed that
the board's revenues were $250,000; the board's
expenditures were $325,365. The board had a cumulative
deficit of $55,238. The proposed fee adjustment in
regulations that were publicly noticed March 17, 2014 would
raise the licensing fees from $180 to $240, which would
address the deficit. She testified that the board was
operating the in best interest of the public to protect and
promote the public health, welfare and safety of Alaskans.
9:44:19 AM
Kris Kris Curtis, Legislative Auditor, Alaska Division of
Legislative Audit testified that the division had conducted
an audit of the board to determine whether it was serving
the public interest and whether it should be extended. The
audit concluded that the board was serving the public
interest by effectively licensing and regulating physical
therapists, physical therapy assistants, occupational
therapists and occupational therapy assistants. The
division recommended the maximum 8 year extension. She
stated that the audit was fairly clean with only one
recommendation addressing the case management systems and
confidentiality.
9:45:39 AM
Co-Chair Meyer OPENED public testimony.
LEANNE CARROTHERS, ALASKA PHYSICAL THERAPY, ANCHORAGE (via
teleconference), stated that she was available for
questions.
Co-Chair Meyer CLOSED public testimony.
HB 242 was HEARD and HELD in committee for further
consideration.
9:46:07 AM
AT EASE
9:49:57 AM
RECONVENED
HOUSE BILL NO. 234
"An Act extending the termination date of the
Regulatory Commission of Alaska; and providing for an
effective date."
9:50:39 AM
REPRESENTATIVE MIKE HAWKER, explained that the legislation
would extend the termination date of the Regulatory
Commission of Alaska (RCA) to June 30, 2022. He noted that
the commission differed from other professional licensing
boards; the commission was one of the state's few
independent, quasi-judicial regulatory commissions. He
stated that the RCA was responsible for ensuring the safe,
adequate and fair public utility and pipeline services
across the state. He explained that the audit objectives in
evaluating the reauthorization of the Regulatory Commission
of Alaska were no different than other boards and
commissions; it must demonstrate a continued need for its
continued existence and show that it has been operating in
an effective and efficient manner. The bill recommended and
8 year extension and was consistent with the recommendation
of the Division of Legislative Audit. He offered a brief
history of the commission. He asserted that the commission
was currently functioning well in discharging its assigned
responsibilities. He shared that legislative auditors had
included an appendix on Pages 23 through 30, which included
information gathered by the auditors from people who had
had dockets dealt with by the RCA. The users of the RCA
proved to be very satisfied with the work performed by the
commission. He pointed out to the committee Page 18 of the
audit, which included a summary pie chart that detailed in
aggregate how the users viewed the RCA's function; 70
percent felt that the commission was operating in a very
good/good rating, with only 8 percent giving a poor rating.
He continued to Page 31 of the audit which showed that the
regulatory cost charge base was sufficient for the
commission to operate. The RCA had maintained an adequate,
but not excessive reserve for operations. He thought that
the commission needed the full year reauthorization period.
9:56:22 AM
Co-Chair Meyer requested further clarification of the
second recommendation in the recent audit.
Representative Hawker deferred to the Division of
Legislative Audit and the RCA chairman.
9:57:10 AM
Senator Hoffman noted page 31, and wondered if there would
be an addition of personal and contract services and what
the cost would be over the next 8 years.
Representative Hawker remarked that the primary fund source
for the RCA was approximately $9 million in RCA receipts.
He said that beyond the recognition that the commission was
a receipt authority, he deferred the question to the RCA
9:59:01 AM
Co-Chair Meyer remarked that the Regulatory Commission of
Alaska chairman.
9:59:53 AM
T.W. PATCH, CHAIRMAN, REGULATORY COMMISSION OF ALASKA,
NASHVILLE (via teleconference), explained that the concerns
regarding the performance of the RCA had been raised by the
committee in 2011. At that time, the committee offered the
commission guidance and set a termination date of June 30,
2014. He said that the RCA, under the guidance of the
committee, provided to the legislature a report on January
16, 2012. The report laid out a program to address utility
company concerns and legislative concerns regarding
discovery regulations, and set out a program to consider
and adopt best practices whereby sooner decisions could be
made in those proceeding wherein a utility proposed a new
revenue requirement or where a utility proposed to adopt a
new rate design. Subsequent to the report the RCA began to
consider several regulation changes; it sought public
comment and implemented new and aggressive internal
protocols to assist rate payers and utility constituencies.
He asserted that the changes were resulting in decisions in
those types of complex cases in just over 300 days, which
was a reduction from the statutory time allowed of 450
days. He said that in reducing the time in which a final
decision in a rate case was derived at, the RCA achieved
the result without enhancement in funding, additional
staffing, new enabling legislation, reported adverse impact
on the utility industry or protestation by rate payers. He
testified that the progress resulted in better credit
ratings for utilities across the state, which resulted in
lower capital costs and lower customer rates. He stressed
that there was a strong relationship between agency
managers and industry. He felt it was important to
recognize that the commission had assisted the legislature
and many other state agencies.
10:04:00 AM
Mr. Patch noted that the commission had worked with the
legislature and the governor on the interior energy project
and the stand along gas pipeline legislation. The
commission was currently assisting Alaska Gasline
Development Corporation on tariff and open season issues as
well as working with the Alaska Energy Authority and the
Alaska Industrial Development and Export Authority on
important planning and development issues. He urged the
committee to approve the extension of the sunset date.
10:05:39 AM
Co-Chair Meyer remarked that the commission was successful.
10:05:53 AM
Senator Hoffman reiterated his previous question.
Mr. Patch responded that there was an authorization for the
collection of approximately $9 million.
Senator Hoffman said that in the budget and reflected in
the fiscal note there was a 20 percent increase in
salaries, he wondered if it reflected an increase for
salaries for management positions. He noted the increase in
contracting services and highlighted that the numbers on
Page 31 of the audit differed from those in the fiscal
note. He understood that there were no general funds
involved but requested justification for the fiscal note
and what the process the board went through when approving
a budget.
Mr. Patch replied that the legislature set an authorized
entitlement to collect and from that entitlement the
commission collected the regulatory cost charges and an
amount of money that was made available to the Regulatory
Affairs and Public Advocacy Section that was generally the
consumer advocate representing rate payers. He added that
when funds were not expended the monies were returned to
rate payers as a credit against the next year's cycle of
calculated regulatory cost charges.
10:08:20 AM
Senator Hoffman queried whether there would be an increase
in salaries that would total over $1 million in the
proposed personal services. Mr. Patch replied that there
was not an authorization to increase salaries; rather,
there was approval for additional staff.
10:09:23 AM
Co-Chair Meyer remarked that the fiscal note did not
reflect an increase in staff numbers.
Representative Hawker interjected that it was important to
notice that the governor's request was for FY15, the most
recent numbers in the unaudited schedule of revenues and
expenditures was for FY12, and was 3 years out-of-date. He
noted that the commissioner's salaries were established in
statute and could not be increased without a statutory
change. He highlighted that the fiscal note included a $1.3
million Department of Law Regulatory Affairs and Public
Advocacy transfer, which would need to be included in
additional expenditures and was, undoubtedly, the largest
share of the reconciling item.
10:11:15 AM
AT EASE
10:11:45 AM
RECONVENED
10:11:48 AM
Representative Hawker spoke to the difference between the
numbers on Page 31 of the audit and the fiscal note. He
stated that the transfer to the Department of Law
Regulatory Affairs and Public Advocacy was noted on the
bottom Page 31 of the audit. The transfer was included in
the fiscal note and made up a significant amount of the
contract services differential.
Co-Chair Meyer CLOSED public testimony.
10:13:21 AM
KRIS CURTIS, LEGISLATIVE AUDITOR, ALASKA DIVISION OF
LEGISLATIVE AUDIT, stated that the audit of the commission
had found that the RCA was working in the public interest
and reiterated the recommendation for the 8 year extension.
She highlighted two audit recommendations; first, it was
recommended that the RCA continue to improve its case
management data, as the division had encountered high error
rates when running tests in 2013. Secondly, the division
recommended that the legislature consider clarifying
statutory timelines for rule making, or "regulatory,"
proceedings. She stated that statutes required RCA to issue
a final order in a rule making docket no later than 730
days after completer petition for a change was filed, or
after the commission initiated proceedings. There was a
provision for one 90 day extension for good cause; statutes
prohibited RCA from terminating a proceeding in a docket,
and then opening a proceeding in another docket on
substantially the same matter. The audit had found that on
occasion the RCA had split rule making proceedings into two
dockets, the first to consider whether there was a need for
regulations in an area of concern or interest. Once public
testimony and comments were obtained regarding the
potential regulations, the docket was closed. If the record
indicated a need for regulations, RCA opened a second
docket to consider adopting the regulations. The division
found that the process allowed the RCA to take up to 4.5
years to complete proceedings. She said that RCA management
believed that including clear intent language in the
dockets initiating order made the process transparent and
complied with statute. The division had found that RCA was
including clear intent language in the dockets and in that
regard the process was transparent. The division wanted to
raise the issue for legislative consideration because the
process appeared to evade statutory timelines and did not
appear to serve the regulated community or the public
interest. The recommendation was for the legislature to
consider clarifying statutes to ensure RCA complied with
legislative intent when processing regulatory dockets.
10:16:00 AM
Co-Chair Meyer believed that the recommendation would have
to be implemented through a new and separate piece of
legislation.
Representative Hawker said that the legislature could do
anything it chose; however, there had been a long history
of keeping reauthorization bills "clean".
10:16:37 AM
Mr. Patch disagreed with the audit recommendation. He
stated that the orders of the commission, as regulatory
proceedings were opened and closed, contained very clear
and explicit statements of the RCA's intention as it
engaged in the process. He noted that one of the matters
before the committee in past RCA sunset extension hearings
was the matter of discovery; should the RCA have an
articulated discovery concern, after consideration the
consensus had been that the commission should adopt a
discovery regulation. He stressed that decided whether the
commission should adopt discovery regulations was different
that deciding what the language of the regulations would
contain and how it would allow parties to discover
information. He did not believe that it was necessary to
change the law for two reasons: first, the current
statutory prohibition states that the commission would not
seek to evade the legislature's intent; secondarily,
subsequent to the last reauthorization the commission had
adopted a procedure that allowed the commission to consider
and obtain matters of public opinion in an informational
docket which had no timeline.
10:20:36 AM
Senator Hoffman looked at the fiscal note and Appendix C of
the audit, and remarked that in FY11 there was
approximately $62,000 of revenue that came from the Power
Cost Equalization Program (PCE) that had jumped up to
$93,000 FY12. He requested clarification as to the
breakdown of the revenue.
Mr. Patch replied that Alaska Energy Authority (AEA) had
provided yearly grants of $140,000. The commission had
certain responsibilities under the PCE program and billed
against the grant for quantification, analysis and
community assistance in obtaining the benefits of the
program. He stated that the numbers cited in the fiscal
note was the funds that the commission had expended in past
years against the grant.
10:22:16 AM
Senator Hoffman wondered if Ms. Curtis could respond to the
$30,000 increase from FY11 to FY12.
Ms. Curtis replied that she could not. She pointed out that
the numbers listed in Appendix C had been unaudited and
that the figures had been provided by the commission for
inclusion into the report for informational purposes.
10:23:00 AM
Senator Hoffman requested that the auditor or the chairman
of the commission provide a copy of the grant to the
committee.
10:23:24 AM
Representative Hawker announced that the line item was an
on-demand type of spending activity; the commission had not
spent the entire $140,000 in each year and in the 9 months
of FY13, the expenditure had been only $55,000.
10:24:19 AM
Co-Chair Meyer remarked that the fiscal note was
substantial, but it had been adequately justified.
10:24:39 AM
HB 234 was HEARD and HELD in committee for further
consideration.
CS FOR HOUSE BILL NO. 210(FIN) am
"An Act relating to crisis intervention training for
school personnel; and relating to restraint and
seclusion of students in public schools."
10:25:24 AM
REPRESENTATIVE CHARISSE MILLET, read from the sponsor
statement:
Alaska is currently one of the less than 15 states
that have no statewide policy regarding how children
can either be physically restrained or secluded in
schools. Placing students in positions where they are
immobilized or put into a room by themselves are
emotionally charged subjects that require our
attention. The conditions under which these actions
are allowed are vague and require clarification. The
three areas that require clarification include: what
constitutes physical restraint and seclusion; under
what conditions physical restraint and seclusion can
be exercised; what actions are required of school
personnel.
Students need to attend a school that is safe. Parent
need to know if their child was involved in an
incident of restrain or seclusion and the reasons for
these actions need to be clearly defined. School
personnel and administrators need to know that the
actions they take to protect the safety of their
students were justified and that they will not be held
liable for carrying out their duties correctly.
House Bill 210 is a balanced approach to ensure school
safety. It requires that a school district's safety
plan be made available to parents, legal guardians,
students and the public. If an incident of restraint
or seclusion occurs, the student's parents or legal
guardians need to be informed the same day as the
incident. With the exception of emergency situations,
only those who have undergone training approved by the
Department of Education and Early Development can
engage in physical restrain or seclusion. Each school
district needs to report all instances of restraint
and seclusion on an annual basis to the Department of
Education and Early Development.
HB 210 will protect students from trauma, keep parents
informed of what happens to their child, and support
teachers and school personnel tasked with incredibly
difficult decisions. By ensuring a statewide,
consistent set of rules, we make our schools safer for
everyone. I would respectfully request your support.
Representative Millet added that seclusion or restraint was
a position of last resort and that the focus should be to
de-escalate a bad situation. She highlighted that the
training portion was the most important part of the
legislation to ensure the protection of students and of the
state.
10:28:35 AM
Co-Chair Meyer understood that school districts lacked a
current policy.
Representative Millet replied that most school districts
had a policy in place; however, smaller districts did not
of a plan, nor had they been training staff with de-
escalation, seclusion and restraining tactics.
10:29:08 AM
Senator Hoffman queried whether the mandate would be
funded.
Representative Millet noted that there was a $14,000 fiscal
note that would cover administration costs and that the
Mental Health Trust Authority would put a program called
"Train the Trainer" into place. This program would have a
nominal cost of $200, which the sponsor hoped could be
covers by the authority or another type of grant process,
and would bring administrators from other communities in to
train their peers in de-escalation and restraint tactics.
10:30:33 AM
CHRISTIE REINHARDT, GOVERNOR'S COUNCIL ON DISABILITIES N
SPECIAL EDUCATION, ANCHORAGE (via teleconference),
testified in support of the legislation. She shared the
story of her high-functioning, autistic son and his
struggles in the public school system. She shared that some
of the staff in his school had been trained in de-
escalation techniques and positive behavior intervention
support. She furthered that behavioral plans and functional
behavioral assessments had been made available to her son.
She believed that having the policies and procedures in
place had protected her son and his peers. She felt that
the legislation had been crafted to be the most useable and
effective seclusion and restraint legislation.
10:33:47 AM
JEANNE GERHARDT-CYRUS, SELF, KIANA (via teleconference),
spoke in support of the legislation. She testified that her
daughter had been diagnosed with Fetal Alcohol Syndrome
Disorder (FASD) and had a hard time function in a
traditional school setting. She lamented that the staff in
her school had not been trained to handle students with
behavioral disorders which would end up with the situation
escalating negatively. She believed that the cost of the
program was minimal when compared to the cost for school
districts for mediation with parents. She shared that her
daughter suffered Post Traumatic Stress Disorder due to her
encounters in her early educational career.
Co-Chair Meyer handed the gavel to Vice-Chair Fairclough.
10:37:40 AM
Ms. Gerhardt-Cyrus shared her daughter's testimony:
I strongly support this bill. When I was in school
everyone thought that I was psychotic and that is why
I have no friends. This year with the right services
and no restraint or seclusion I am doing better and
have been on the honor roll since the beginning of the
year due to the fact that I can walk out and sign out
when I need to go for a walk and clear my head.
10:38:35 AM
MARK REGAN, DIRECTOR, DISABILITY LAW CENTER, ANCHORAGE (via
teleconference), testified in support of the legislation.
He stated that the use of restraint and seclusion in
schools had been a major issue for approximately the past
10 years. He shared that on the national level there had
been injuries and even deaths associated with the problem
of proper restraint and seclusion for students. He offered
that one of the drivers of the legislation was the notice
provisions for parents. He discussed studies that indicated
the misuse of restraint and seclusion in schools and that
congress, as well as several other states, had entertained
discussions of similar legislation. He thought that
shifting over to an approved training models and support
from the Department of Education and Early Development
could make it easier for small schools districts in rural
areas to properly care for students.
Vice-Chair Fairclough CLOSED public testimony.
10:42:21 AM
Senator Olson wondered if the sponsor had solicited the
perspective of the medical community or healthcare
providers.
10:42:39 AM
VASILIOS GIALOPSOS, STAFF, REPRESENTATIVE CHARISSE MILLETT,
stated that the sponsor had interacted with the Alaska
Nurse's Association and other medical bodies, discussing
particularly the provisions surrounding student safety. It
was the understanding of the sponsor that the medical
bodies that were involved in discussion of the bill in
previous committees were satisfied with the legislation
before the committee.
10:43:17 AM
Senator Olson asked if the discussions had included
providers that could prescribe medications for chemical
restraint.
Mr. Gialopsos replied that the definition of chemical
restraint in the bill was the product of the Board of
Nursing and associated nursing groups; it had been
understood that any chemical that would be used for
disciplinary purposes would be disallowed for use by school
personnel, but would need to be handled by a medical
professional, in a separate setting.
CSHB 210(FIN)am was HEARD and HELD in committee for further
consideration.
CS FOR HOUSE BILL NO. 378(TRA)
"An Act relating to motor vehicle registration;
relating to drivers' licenses; relating to instruction
permits; relating to commercial motor vehicles and
commercial motor carriers; and providing for an
effective date."
10:44:51 AM
REBECCA ROONEY, STAFF, REPRESENTATIVE PEGGY WILSON, noted
that the bill had been crafted at the request of the
Department of Motor Vehicles. She provided a sponsor
statement:
HB 378 changes Alaska statutes to align them with the
updated Federal Motor Carriers Administration (FMCSA)
regulations. It will make the roads a safer place for
all Alaskans by allowing the Division of Motor
Vehicles (DMV) to refuse to register or to revoke a
registration for a motor carrier or commercial vehicle
that does not meet these federal safety standards.
If HB 378 is not passed this session Alaska will be
out of compliance with federal regulations. Non-
compliance could result in the federal government
decertifying Alaska's CDL program. The decertification
would jeopardize Alaska's federal highway funding. DOT
reports that based on 2014 apportionments, this could
mean a loss of up to $34M in federal dollars. In
addition to the loss of federal funds the DMV will not
be able to issue, renew or upgrade any CDL or permits.
HB 378 adds additional safety-related improvements to
the commercial permitting requirements to comply with
federal mandates, which include raising the age to
obtain an instruction permit for a commercial driver
from 17 to 18 years of age, and limiting the period of
validity to 180 days with the ability to renew the
commercial permit for a period of 180 days instead of
two years. A five year timeframe is added that will
allow a person to apply for an instructional permit
after they have been issued a certain class of
license.
A Commercial Driver License (CDL) permit will be
disqualified in the same manner as a commercial
license if the driver is operating out of service or
is convicted for crimes that include driving under the
influence, refusal to submit to a chemical test,
manslaughter, or negligent homicide resulting from
driving a motor vehicle or for the commission of a
felony using a motor vehicle. Texting while driving
will also be made a serious traffic violation by which
CDL operators could lose their license or permit for a
period of time.
Additionally, HB 378 contains clarifying language for
registration fees charged for vehicles over 10,000
pounds used for personal use and in an individual's
name. This clarification makes it clear that vehicles
with an empty weight over 10,000 pounds (except motor
homes used for personal use) will be charged the same
as commercial vehicles of the same weight.
10:47:38 AM
AMY ERICKSON, DIRECTOR, DIVISION OF MOTOR VEHICLES,
DEPARTMENT OF ADMINISTRATION, stated that the legislation
would allow DMV to refuse to register vehicles that had
been placed out-of-service by the Federal Motor Carrier
Safety Association (FMCSA). Reasons for denial included:
· Unsatisfactory safety rating from the FMCSA
· Failure to pay levied FMCSA fees
· Motor carrier determined to be an imminent hazard
· Failure for a new entrant to obtain or schedule and
audit within 18 months
Ms. Erickson spoke to Section 8 of the bill, which allowed
a person to acquire an instruction permit for license in a
previously held class.
10:49:45 AM
AVES THOMPSON, EXECUTIVE DIRECTOR, ALASKA TRUCKING
ASSOCIATION, ANCHORAGE (via teleconference), spoke in
support of the legislation. He stated that the association
was a statewide association representing the interests of
nearly 200 companies in Alaska. The bill made technical
corrections to the CDL program required by the FMCSA on
certain commercial driver violations and the consequences
of those violations. These technical corrections bring the
Alaska DMV into compliance with federal regulations and
compliance is required to allow the CDL program to work. He
spoke to the subject of compliance with the feds on the CDL
program. Although the sanctions have never been applied by
FMCSA, there is always a first time. The consequences of
decertification of the CDL program are very severe.
Issuance of new CDL's would stop immediately and all CDL's
would be invalid upon their expiration date. This means
that a commercial vehicle driver could not drive
commercially in Alaska or any other state without getting a
CDL from another state. The federal highway dollars are
important but DMV must be able to issue valid CDL's.
Vice-Chair Fairclough CLOSED public testimony.
10:52:11 AM
AT EASE
10:53:07 AM
RECONVENED
CSHB 378(TRA) was HEARD and HELD in committee for further
consideration.
CS FOR HOUSE BILL NO. 75(FIN)
"An Act amending certain audit requirements for
entities receiving contributions from permanent fund
dividends; requiring the three main campuses of the
University of Alaska to apply to be included on the
contribution list for contributions from permanent
fund dividends; and requiring the university to pay an
application fee for each campus separately listed on
the contribution list for contributions from permanent
fund dividends."
CSHB 75(FIN) was SCHEDULED but not HEARD.
SENATE BILL NO. 220
"An Act relating to additional state contributions to
the teachers' defined benefit retirement plan and the
public employees' defined benefit retirement plan; and
providing for an effective date."
SB 220 was SCHEDULED but not HEARD.
Vice-Chair Fairclough stated that the committee would hear
HB 75 and HB 278 later that day.
ADJOURNMENT
10:53:53 AM
The meeting was adjourned at 10:53 a.m.