Legislature(2013 - 2014)SENATE FINANCE 532
04/17/2014 01:30 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB193 | |
| HB305 | |
| HB121 | |
| HB328 | |
| HB143 | |
| HB282 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 193 | TELECONFERENCED | |
| += | HB 305 | TELECONFERENCED | |
| += | HB 121 | TELECONFERENCED | |
| += | HB 328 | TELECONFERENCED | |
| += | HB 143 | TELECONFERENCED | |
| += | HB 282 | TELECONFERENCED | |
| += | HB 204 | TELECONFERENCED | |
| += | HB 231 | TELECONFERENCED | |
| += | HB 19 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
April 17, 2014
2:19 p.m.
2:19:49 PM
CALL TO ORDER
Co-Chair Meyer called the Senate Finance Committee meeting
to order at 2:19 p.m.
MEMBERS PRESENT
Senator Pete Kelly, Co-Chair
Senator Kevin Meyer, Co-Chair
Senator Anna Fairclough, Vice-Chair
Senator Click Bishop
Senator Mike Dunleavy
Senator Lyman Hoffman
Senator Donny Olson
MEMBERS ABSENT
None
ALSO PRESENT
Dirk Craft, Staff, Representative Lance Pruitt; Michael
Paschall, Staff Representative Eric Feige; Representative
Benjamin Nageak; Mary, Schlosser, Staff, Representative
Benjamin Nageak; Victoria Dance, Self, Juneau;
Representative Paul Seaton; Brenda Hewitt, Staff,
Representative Doug Isaacson; Errol Champion, Director ,
Alaska Associations of Realtors.
PRESENT VIA TELECONFERENCE
Lela Klingert, President, Commercial Fishing and
Agricultural Bank, Anchorage; Amanda Unser, Chair, American
Massage Therapy Licensing Coalition, Anchorage; Marty
Hester, Deputy Director, Division of Insurance, Department
of Commerce, Community and Economic Development; Ed
Sniffen, Attorney V, Department of Law, Anchorage.
SUMMARY
CSHB 121(FIN)
COMMERCIAL FISHING & AGRICULTURE BANK
CSHB 121(FIN) was REPORTED out of committee with
a "do pass" recommendation and with a previously
published fiscal impact note: FN2 (CED).
CSHB 143(FIN)
COMMERCIAL FISHING CREWMEMBER LICENSES
CSHB 143(FIN) was REPORTED out of committee with
a "do pass" recommendation and with two
previously published fiscal impacts note: FN4
(LWF) and FN3 (DFG).
HB 193 MUNICIPAL TAXATION OF TOBACCO PRODUCTS
SCSCSHB 193(FIN) was REPORTED out of committee
with a "do pass" recommendation and with one new
fiscal impact note from the Department of Revenue
and one new zero fiscal note from the Department
of Commerce, Community and Economic Development.
HB 231 CATTLE BRAND REGISTRATION
HB 231 was REPORTED out of committee with a "do
pass" recommendation and with a previously
published zero fiscal note: FN1 (REV).
HB 282 LANDLORD AND TENANT ACT
HB 282 was HEARD and HELD in committee for
further consideration.
CSHB 305(FIN)
JUNK DEALER & METAL SCRAPPER LICENSING
CSHB 305(FIN) was REPORTED out of committee with
a "do pass" recommendation and with two
previously published zero fiscal notes: FN1 (COR)
and FN2 (REV).
CSHB 328(L&C)
BOARD/LICENSING OF MASSAGE THERAPISTS
CSHB 328(L&C) was REPORTED out of committee with
a "do pass" recommendation and with one
previously published fiscal impact note: FN1
(CED).
CS FOR HOUSE BILL NO. 193(FIN)
"An Act relating to the joint administration of
tobacco taxes by the state and a municipality."
2:21:17 PM
DIRK CRAFT, STAFF, REPRESENTATIVE LANCE PRUITT,
Vice-Chair Fairclough MOVED to REPORT SCSCSHB 193(FIN) out
of committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
SCSCSHB 193(FIN) was REPORTED out of committee with a "do
pass" recommendation and with a new fiscal impact note from
the Department of Revenue and a new zero fiscal note from
the Department of Commerce, Community and Economic
Development.
CS FOR HOUSE BILL NO. 305(FIN)
"An Act relating to the records of metal scrappers;
repealing the requirement that a junk dealer or metal
scrapper obtain a license; and providing for an
effective date."
Vice-Chair Fairclough MOVED to REPORT CSHB 305(FIN) out of
committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSHB 305(FIN) was REPORTED out of committee with a "do
pass" recommendation and with two previously published zero
fiscal notes: FN1 (COR) and FN2 (REV).
2:23:33 PM
AT EASE
2:27:06 PM
RECONVENED
HOUSE BILL NO. 231
"An Act eliminating the Department of Revenue's
duty to register cattle brands."
Vice-Chair Fairclough MOVED to REPORT HB 231 out of
committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
HB 231 was REPORTED out of committee with a "do pass"
recommendation and with one previously published zero
fiscal note: FN1 (REV).
CS FOR HOUSE BILL NO. 121(FIN)
"An Act relating to the examinations, board, loans,
and records of the Alaska Commercial Fishing and
Agriculture Bank; and providing for an effective
date."
2:29:11 PM
AT EASE
2:32:44 PM
RECONVENED
Vice-Chair Fairclough had a question about the repeal
language and inquired whether the sponsor knew how the
state initially got involved loaning money to the bank.
MICHAEL PASCHALL, STAFF REPRESENTATIVE ERIC FEIGE,
responded that he was not aware of all of the historical
details but ascertained that the state had invested in the
bank and the bank was initially using state money that has
since been repaid.
Vice-Chair Fairclough wondered if the bank would be able to
function if the state withdrew its permits.
LELA KLINGERT, PRESIDENT, COMMERCIAL FISHING AND
AGRICULTURAL BANK, ANCHORAGE (via teleconference),
understood the question as; if the state took action to
rescind CFAB's privileges as agents to accept permits as
collateral would the consequences be detrimental to the
bank. She answered that if the privilege was rescinded the
impacts on future operations of the bank would be "severe
and negative."
Vice-Chair Fairclough relayed that the issue that the
committee was "grappling with" was the banks wish to hire a
lobbyist. She elaborated that even though CFAB repaid its
initial loan from the state, the bank was still in
operation due to using state assets. The committee felt
uncomfortable with the scenario of CFAB hiring a lobbyist
to impact legislators' decisions. She felt that the
scenario created a conflict for members. She inquired what
a lobbyist would do for CFAB that it could not currently do
for itself.
Ms. Klingert replied that a lobbyist would be the eye,
ears, and voice of CFAB during the session. She expounded
that the lobbyist would monitor legislation and identify
any issues that affected CFAB. The bank rarely introduced
its own legislation. The lobbyist would act as a
representative of the bank so CFAB employees would not have
to travel to Juneau to deal with any issues that arose.
Vice-Chair Fairclough queried whether statute prohibited
CFAB from hiring a governmental affairs employee instead of
a lobbyist.
Ms. Klingert responded that she was not aware of any
prohibition against hiring a governmental affairs employee.
She recounted that sometime in the 1990's, Senator Pearce
[1988 - 2001] introduced legislation that prohibited CFAB
and other similar entities from using state money to lobby
state officials. Prior to enactment of the legislation the
prohibition did not exist.
Vice-Chair Fairclough MOVED to REPORT CSHB 121(FIN) out of
committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSHB 121(FIN) was REPORTED out of committee with a "do
pass" recommendation and with one previously published
fiscal impact note: FN2 (CED).
2:39:38 PM
AT EASE
2:40:48 PM
RECONVENED
Co-Chair Meyer handed the gavel over to Co-Chair Kelly.
CS FOR HOUSE BILL NO. 328(L&C)
"An Act establishing the Board of Massage Therapists;
relating to the licensing of massage therapists; and
providing for an effective date."
2:41:51 PM
AMANDA UNSER, CHAIR, AMERICAN MASSAGE THERAPY LICENSING
COALITION, ANCHORAGE (via teleconference), briefly spoke in
support of HB 328. She related that the massage therapists
were aware that licensing fees were associated with state
licensure.
REPRESENTATIVE BENJAMIN NAGEAK, introduced HB 328 and
related that it established a board of massage therapy to
provide regulation for certification, educational
standards, promote a code of ethics, public safety, self-
regulation, accountability, business development, grievance
process and increased access to therapy. He added that the
legislation would allow massage therapist to directly bill
insurance.
VICTORIA DANCE, SELF, JUNEAU, related her extensive
experience in the massage therapy profession. She had
serious concerns and "pragmatic" issues with the bill. She
shared that the coalition had only surveyed 43 massage
therapists out of an estimated 600 in the state, and that
17 respondents only favored licensing if "it was done
right." She thought that the bill was a good start in
bringing state licensure into alignment with other state
licensing programs. She believed that the legislation did
not reflect current competency industry standards, the
licensing fees would be high, and that the bill would not
enable therapists to directly bill insurance. She detailed
that the Entry Level Analysis project established a
competency standard for massage therapists of 625 hours.
The recommendations were established after HB 328 was
introduced. She relayed that 500 hours of education was an
arbitrary standard based on relaxation massage and not
medical or therapeutic massage. She continued that the
licensing fee would be very high, which created a hardship
for entry level therapists. Fifty-three percent of states
had licensing fees set at $100 to $150. She cautioned that
investigations could lead to high licensing fees due to the
existence of "massage parlors." The licensing board in
Arizona had to deal with approximately 12 investigations
each year related to massage parlors and the West Virginia
board recently undertook an investigation that costs $200
thousand that resulted in increased fees. She pointed out
that Washington was the only state massage therapy board
that had a mandate to bill third party insurance. She
worried that the bill was not the adequate vehicle to
authorize third party insurance billing for massage
therapists. She summarized that the legislation did not
adequately address public protection by allowing
educational licensing requirements under 625 hours and that
the fees were too high for entry level and part-time
therapists.
2:52:47 PM
Ms. Unser addressed the concerns raised by Ms. Dance. She
maintained that 500 hours was the national standard and
that the board would be implementing continuing education
standards. The coalition estimated that the licensing fees
would be $225 each year, which was within national
standards. The fees were equivalent to performing four to
eight massages over a two year period and were a tax write
off. She offered that investigations related to massage
parlors were criminal and not board investigations. She
assured the committee that individual insurance companies
set policies regarding accepting massage therapists as
preferred providers and most allowed the practice. Online
courses for CPR and continuing education were included in
the bill to provide rural therapists easier and less costly
access to complete required continuing education.
Vice-Chair Fairclough cited page 3 of the bill under
"Qualification for a License." She related that Ms. Dance
indicated that the 625 hour educational standard was only
recently changed and asked for confirmation that 500 hours
remained the national standard.
Ms. Unser assured Vice-Chair Fairclough that the American
Massage Therapy Association (AMTA), Associated Bodywork and
Massage Professionals (ABMT), and the National Association
of Massage Therapy upheld the 500 hour standard.
Senator Olson wondered what types of complaints were made
against massage therapists.
MARY, SCHLOSSER, STAFF, REPRESENTATIVE BENJAMIN NAGEAK,
replied that issues of sexual inappropriateness related to
massage parlors could possibly happen. She related that she
never had a complaint after receiving massage therapy.
Co-Chair Kelly thought that complaints concerning massage
parlors would be a criminal issue.
Vice-Chair Fairclough noted that Ms. Dance indicated that
only Washington allowed third party billing. She inquired
whether massage therapy had its own medical codes and how
billing would work.
Ms. Unser responded that specific codes for massage therapy
procedures existed. She voiced that insurance companies do
recognize massage therapists as third party billers in
states that have state licensure. Each individual insurance
company had different requirements regarding massage
billing that could include a doctor's referrals, medical
necessity, or limited number of treatments.
Co-Chair Kelly asked what average licensing fees in other
states were.
Ms. Unser responded that the national average was $250 per
year.
Senator Bishop referenced Section 10 on page 10. He
wondered whether the section contained the "grandfathering
provisions."
Ms. Unser replied in the affirmative. She interjected that
according to previous testimony by the Division of
Insurance direct billing would be guided by individual
insurance policies.
3:01:15 PM
AT EASE
3:02:37 PM
RECONVENED
Co-Chair Kelly CLOSED public testimony
Ms. Schlosser referenced the document titled, "States
Regulating Massage Therapy" (copy on file) which contained
a map of the U.S. designating the states that regulated
massage therapy and noted that Alaska was behind the curve.
She maintained that licensing was a matter of
professionalism and public safety. She stated that without
licensure any cases of inappropriate touch had to be
pursued as a civil case.
3:03:55 PM
AT EASE
3:05:13 PM
RECONVENED
Co-Chair Kelly inquired whether the legislation allowed
massage therapist to directly bill insurance companies.
MARTY HESTER, DEPUTY DIRECTOR, DIVISION OF INSURANCE,
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
(via teleconference), responded that HB 328 amended Title 8
and the changes did not alter or affect Title 21 of the
insurance code. The department did not anticipate a cause
and effect relationship between Title 21 and HB 328.
Vice-Chair Fairclough inquired whether the bill allowed
massage therapists to directly bill insurance.
Mr. Hester responded that the bill did not mandate what
insurance policies should cover. The bill did not mandate a
particular type of coverage or the extent of the coverage.
Vice-Chair Fairclough understood that the bill did not
mandate massage coverage but wondered whether the bill
prevented coverage.
Mr. Hester specified that the Affordable Care Act (ACA)
mandated preventive and rehabilitative care services. The
state's benefit plan was based on a Premera plan that
included massage therapy. State insurance plans that were
compliant with the ACA were required to cover massage
therapy. However, the ACA did not specify to what extent
the services should be covered.
Co-Chair Kelly inquired whether insurance companies would
cover massage therapy services if the state did not have
licensure.
Mr. Hefter responded that massage coverage was dependent on
the individual policy.
Vice-Chair Fairclough noted for the record the she obtained
the report titled "The Core Entry Level Analysis Project"
from the Entry Level Analysis project by the Coalition of
National Massage Therapy Organizations completed in
December, 2013. She relayed that the project's goals were
to define knowledge and skill components of entry level
education and recommendations, recommend the number of
minimum hours of education… for the safe and competent
practice of massage professionals." She confirmed that the
report did recommend 625 hours of educational training but
was uncertain whether the board had adopted the
recommendation.
Ms. Schlosser replied that report was a "survey" and had
not been adopted yet; as a result the national standard
remained at 500 hours. She added that, once established the
massage board had the ability to add additional educational
hours.
Vice-Chair Fairclough reported that the AMTA standard was
500 hours.
3:14:24 PM
AT EASE
3:17:41 PM
RECONVENED
Co-Chair Meyer returned as Chair.
Senator Dunleavy observed that some massage therapists
wanted to be licensed while others did not. He wondered
whether licensing could be optional and what the sponsor's
thoughts were regarding optional licensing.
Ms. Schlosser responded that the objective of licensing was
to set a standard. She related that the sponsor's and
coalition's intent was to set standards for the profession
in Alaska.
Co-Chair Kelly believed that massage therapy professionals
wanted to set a standard to gain legitimacy as a
"professional health field" and that the legislation
furthered that goal.
Vice-Chair Fairclough discovered that some states required
more than 500 hours of educational training and noted that
Arizona required 700 hours. However, it appeared that the
majority of states required 500 hours.
Vice-Chair Fairclough MOVED to REPORT CSHB 328(L&C) out of
committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSHB 328(L&C) was REPORTED out of committee with a "do
pass" recommendation and with one previously published
fiscal impact note: FN1 (CED).
3:20:09 PM
AT EASE
3:24:01 PM
RECONVENED
CS FOR HOUSE BILL NO. 143(FIN)
"An Act relating to crewmember fishing licenses; and
providing for an effective date."
3:24:16 PM
REPRESENTATIVE PAUL SEATON, presented HB 143 and stated
that the temporary crew member license was a "loophole"
that was increasing in use. The bill would close the
loophole. He detailed that the temporary seven day
commercial fishing license was authorized in 2005, but
resulted in [non-resident] crewmembers obtaining multiple
and sequential temporary licenses, which were intended for
tourists or short time participants. In short duration
fisheries like Bristol Bay, crew members were obtaining
temporary licenses instead of purchasing non-residential
commercial fishing licenses. He reported that the
Department of Fish and Game (DFG) lost $285 thousand in
revenues due to the abusive practice. In 2005, 47 temporary
crew licenses were purchased and in 2012, 1,344 were
purchased. The legislation would increase the department's
revenues by approximately $95 thousand. The temporary
license would remain available and the licensee would be
able to apply for reimbursement of the temporary licensing
fee if an annual license was subsequently purchased.
Co-Chair Meyer noted that the bill was revenue positive.
Senator Bishop thought that the bill would "bolster" the
Fishermen's Fund.
Representative Seaton responded in the affirmative. He
explained that the fund collected 11 percent from crew
licenses and that temporary licenses were only $30.
Senator Dunleavy inquired what would happen if the bill was
not passed.
Representative Seaton answered that crew members would
increasingly continue to abuse the system. He noted that
some individuals were purchasing up to six sequential
temporary licenses rather than purchase the $250 annual
crew license.
Senator Bishop commented that not passing the bill would
put a strain on the Fisherman's Fund, which assists
fishermen with medical expenses.
Vice-Chair Fairclough inquired why the effective date was
January 1, 2015. She wondered how a crewmember license was
obtained versus a sports license.
Representative Seaton replied that crewmember licenses were
obtained similar to sports fishing licenses, sold through
vendors, and were in paper form. The effective date was
chosen because licenses were already printed and new
regulations were not in place for the upcoming season.
3:29:05 PM
AT EASE
3:30:00 PM
RECONVENED
Vice-Chair Fairclough asked when the bill was introduced.
Representative Seaton stated that the bill was introduced
on February 27, 2013.
Co-Chair Meyer CLOSED public testimony.
Vice-Chair Fairclough MOVED to REPORT CSHB 143(FIN) out of
committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CSHB 143(FIN) was REPORTED out of committee with a "do
pass" recommendation and with two previously published
fiscal impacts note: FN4 (LWF) and FN3 (DFG).
3:31:26 PM
AT EASE
3:37:46 PM
RECONVENED
Co-Chair Meyer handed the gavel over to Co-Chair Kelly.
3:37:49 PM
AT EASE
3:38:04 PM
RECONVENED
CS FOR HOUSE BILL NO. 282(JUD)
"An Act relating to the rights and obligations of
residential landlords and tenants; and relating to the
taking of a permanent fund dividend for rent and
damages owed to a residential landlord."
3:38:46 PM
BRENDA HEWITT, STAFF, REPRESENTATIVE DOUG ISAACSON,
informed the committee that the legislation contained
provisions that had been requested by landlords, tenants,
and property managers. She elaborated that the legislation
allowed both the landlord and tenant to verify the premise
condition statement, which catalogued the condition of the
property. The bill provided for a long term pet deposit,
which was previously capped to the same time limit as the
security deposit cap of two months. Another provision of
the bill defined "normal wear and tear," which was more
suitable than the current language, "normal non-abusive
living." The legislation required landlords to maintain a
separate accounting of security deposits to ensure that the
landlord had the funds to reimburse the renter for the
deposit when vacating the premises. The bill allowed
landlords to have up to thirty days to refund damage
deposits to provide sufficient time to assess the cost of
damage if damage was discovered. The current fourteen day
time limit was retained if no damage was found. The bill
defined "service animals', permitted the rental of dry
cabins [cabins without running water], and allowed
landlords to restrict the number of persons living in a
dwelling. Additionally, the legislation permitted eviction
for illegal activities. She furthered that the landlord may
require professional dry cleaning of carpets if the
landlord professionally dry cleaned the carpet prior to
rental. Finally, HB 282 allowed landlords to attach a
permanent fund dividend for unpaid rent or damages.
Currently, dividend (PFD) attachment was legal, but the
bill placed rent as a higher priority than commercial
creditors.
Senator Dunleavy inquired whether there would be a change
in who would have access to the premises.
Ms. Hewitt responded that the issue was not addressed in
the legislation.
ED SNIFFEN, ATTORNEY V, DEPARTMENT OF LAW, ANCHORAGE (via
teleconference), confirmed that the bill did not change any
laws related to access.
ERROL CHAMPION, DIRECTOR, ALASKA ASSOCIATION OF REALTORS,
supported the legislation. He related that he worked
closely with the sponsor to develop the language in the
bill and updated the provisions to protect both the tenant
and the landlord.
Vice-Chair Fairclough inquired when the bill was
introduced.
3:44:40 PM
AT EASE
3:44:57 PM
RECONVENED
Ms. Hewitt replied that the bill was introduced on February
22, 2014.
Vice-Chair Fairclough requested clarity on the provision
that placed rent or damages as a higher priority PFD
attachment over commercial creditors.
Ms. Hewitt detailed that there were established priorities
for PFD attachment and the provision added rent and damages
to the list as number eight. She shared that rent was
intangible and landlords were not able to repossess
possessions in lieu of unpaid rent, so the thought was to
place landlords higher on the list than general creditors.
Co-Chair Kelly CLOSED public testimony.
HB 282 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
3:48:17 PM
The meeting was adjourned at 3:48 p.m.
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