Legislature(2019 - 2020)SENATE FINANCE 532

03/11/2020 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 137 EXTEND BOARD OF PAROLE TELECONFERENCED
Heard & Held
-- Public Testimony --
+ SB 172 EXTENDING THE STATE MEDICAL BOARD TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+ HB 206 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Moved SCS CSHB 206(FIN) Out of Committee
                 SENATE FINANCE COMMITTEE                                                                                       
                      March 11, 2020                                                                                            
                         9:03 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:03:55 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  Stedman   called  the  Senate   Finance  Committee                                                                    
meeting to order at 9:03 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Natasha von Imhof, Co-Chair                                                                                             
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Click Bishop                                                                                                            
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
Senator Bill Wielechowski                                                                                                       
Senator David Wilson                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Pete  Ecklund, Staff,  Senator Bert  Stedman; Senator  Peter                                                                    
Micciche,  Sponsor; Michael  Willis,  Intern, Senator  Peter                                                                    
Micciche; Kris Curtis,  Legislative Auditor, Alaska Division                                                                    
of  Legislative  Audit;  ELIZABETH REXFORD,  STAFF,  SENATOR                                                                    
DONNY   OLSON;   Sara   Chambers,  Director,   Division   of                                                                    
Corporations,    Business   and    Professional   Licensing,                                                                    
Department of Commerce,  Community and Economic Development;                                                                    
Alysia Jones, Executive  Administrator, Alaska State Medical                                                                    
Board, Juneau.                                                                                                                  
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Charles  McKee,  Self,  Anchorage; Jeff  Edwards,  Director,                                                                    
Board  of  Parole,  Anchorage;  Sarah  Bigelow-Hood,  Alaska                                                                    
State  Medical  Board   Member,  Anchorage;  David  Boswell,                                                                    
Alaska State Medical Board  Member, Fairbanks; Richard Wein,                                                                    
Alaska State Medical Board Member, Sitka.                                                                                       
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 137    EXTEND BOARD OF PAROLE                                                                                                
                                                                                                                                
          SB 137 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
SB 172    EXTENDING THE STATE MEDICAL BOARD                                                                                     
                                                                                                                                
          SB 172 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
CSHB 206(FIN)                                                                                                                   
          APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          SCS CSHB 206(FIN) was REPORTED out of committee                                                                       
          with a "do pass" recommendation.                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 206(FIN)                                                                                                
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive mental health  program; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
9:05:21 AM                                                                                                                    
                                                                                                                                
Co-Chair von Imhof MOVED to ADOPT the committee substitute                                                                      
for CSHB 206(FIN), Work Draft 31-GH2198\K (Bruce, 3/10/20).                                                                     
                                                                                                                                
Co-Chair Stedman OBJECTED for discussion.                                                                                       
                                                                                                                                
9:05:46 AM                                                                                                                    
                                                                                                                                
PETE ECKLUND, STAFF, SENATOR BERT STEDMAN, explained the                                                                        
committee substitute.                                                                                                           
                                                                                                                                
Co-Chair Stedman noted that $13.9 million was for FY 20,                                                                        
and there was roughly $250 million approved to draw from                                                                        
the CBR.                                                                                                                        
                                                                                                                                
9:09:16 AM                                                                                                                    
                                                                                                                                
Mr. Ecklund continued to discuss the changes in the                                                                             
committee substitute.                                                                                                           
                                                                                                                                
Senator Hoffman remarked  that the $9 million  was listed as                                                                    
grants, and he appreciated the  issue because of the eminent                                                                    
threat  of  Covid-19.  He  wondered   whether  there  was  a                                                                    
determination  of  how  the  $9   million  grants  would  be                                                                    
distributed to the people that need it.                                                                                         
                                                                                                                                
Mr. Ecklund understood  that there would be  10 people hired                                                                    
in the  epidemiology unit,  and did  not know  whether there                                                                    
was a plan for the grant distribution.                                                                                          
                                                                                                                                
Co-Chair  Stedman REMOVED  their OBJECTION.  There being  NO                                                                    
OBJECTION, the proposed committee substitute was ADOPTED.                                                                       
                                                                                                                                
Co-Chair  Stedman wondered  if  there was  someone from  the                                                                    
department  that   could  speak  about  the   issue  of  the                                                                    
coronavirus.                                                                                                                    
                                                                                                                                
Co-Chair von Imhof believed that  the money would be used to                                                                    
hire   five   public   health    nurses,   three   or   more                                                                    
epidemiologists,  and one  emergency technicians.  She noted                                                                    
that  there  could  potentially   be  tents,  testing  kits,                                                                    
oxygen, and  other things related  to containing  the virus.                                                                    
She  stressed the  importance of  distributing the  money as                                                                    
soon as possible.                                                                                                               
                                                                                                                                
9:15:36 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  stressed  that  the funds  needed  to  be                                                                    
available as soon as possible.                                                                                                  
                                                                                                                                
Senator   Olson  wondered   whether  the   tents  were   for                                                                    
prevention.                                                                                                                     
                                                                                                                                
Co-Chair von  Imhof believed  that the  actual documentation                                                                    
for  the  supplemental  item addressed  the  employees.  She                                                                    
remarked  that   there  were  other  discussion   about  the                                                                    
possible alternative location to send people.                                                                                   
                                                                                                                                
Co-Chair  Stedman  remarked that  it  was  difficult to  get                                                                    
answers.                                                                                                                        
                                                                                                                                
Senator    Hoffman   noted    that    Alaska   received    a                                                                    
disproportionate number of travelers,  because of the cruise                                                                    
industry. He  reiterated the importance  of the  approval of                                                                    
the funding.                                                                                                                    
                                                                                                                                
Co-Chair von Imhof MOVED to  report SCS CSHB 206(FIN) out of                                                                    
Committee  with individual  recommendations. There  being NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Co-Chair  Stedman remarked  that the  bill would  be on  the                                                                    
floor of the Senate that day.                                                                                                   
                                                                                                                                
SCS CSHB 206(FIN)  was REPORTED out of committee  with a "do                                                                    
pass" recommendation.                                                                                                           
                                                                                                                                
Co-Chair Stedman handed the gavel to Co-Chair von Imhof.                                                                        
                                                                                                                                
9:19:12 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:21:57 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 137                                                                                                           
                                                                                                                                
     "An Act extending the termination date of the Board of                                                                     
     Parole; and providing for an effective date."                                                                              
                                                                                                                                
9:22:37 AM                                                                                                                    
                                                                                                                                
SENATOR PETER MICCICHE,  SPONSOR, explained the legislation.                                                                    
He  remarked that  it  was an  uncomplicated  bill, and  the                                                                    
Board would extend to five years.                                                                                               
                                                                                                                                
9:23:30 AM                                                                                                                    
                                                                                                                                
MICHAEL  WILLIS, INTERN,  SENATOR PETER  MICCICHE, explained                                                                    
the legislation.                                                                                                                
                                                                                                                                
9:24:49 AM                                                                                                                    
                                                                                                                                
KRIS  CURTIS,   LEGISLATIVE  AUDITOR,  ALASKA   DIVISION  OF                                                                    
LEGISLATIVE  AUDIT,  explained the  audit  of  the Board  of                                                                    
Parole.                                                                                                                         
                                                                                                                                
9:32:13 AM                                                                                                                    
                                                                                                                                
Senator Hoffman looked at number  2, and wondered whether it                                                                    
required funding.                                                                                                               
                                                                                                                                
Ms.  Curtis replied  that  the  commissioner described  that                                                                    
there  was  already  corrective action  to  update  Highland                                                                    
Mountain Correctional  Center. She remarked  that additional                                                                    
corrective  action would  occur  in the  constraints of  the                                                                    
budget.                                                                                                                         
                                                                                                                                
Senator Hoffman queried a timeframe to address the issue.                                                                       
                                                                                                                                
Ms. Curtis replied that they did not provide a timeline.                                                                        
                                                                                                                                
Senator Bishop  wondered whether  there would be  contact to                                                                    
the department.                                                                                                                 
                                                                                                                                
Ms.  Curtis replied  that she  did not  have a  mechanism to                                                                    
follow up on the finding unless there was another audit.                                                                        
                                                                                                                                
Co-Chair von Imhof OPENED public testimony.                                                                                     
                                                                                                                                
9:34:17 AM                                                                                                                    
                                                                                                                                
CHARLES MCKEE,  SELF, ANCHORAGE (via  teleconference), asked                                                                    
for  proof of  jurisdiction stated  in a  hearing he  had on                                                                    
September 30. He had asked  the court for consideration, but                                                                    
only one charge was dismissed.                                                                                                  
                                                                                                                                
9:36:57 AM                                                                                                                    
                                                                                                                                
JEFF  EDWARDS, DIRECTOR,  BOARD  OF  PAROLE, ANCHORAGE  (via                                                                    
teleconference),   stated   that   he  was   available   for                                                                    
questions.                                                                                                                      
                                                                                                                                
Senator Wielechowski  looked at  the no-show  percentage and                                                                    
wondered whether  there was effort to  lower that percentage                                                                    
number.                                                                                                                         
                                                                                                                                
Mr. Edwards replied in the affirmative.                                                                                         
                                                                                                                                
Senator Wielechowski  asked for an example  of technical and                                                                    
a nontechnical violation.                                                                                                       
                                                                                                                                
Mr. Edwards  responded that  a nontechnical  violation would                                                                    
be something  like a  new criminal charge,  as opposed  to a                                                                    
technical violation,  which would  be something like  a drug                                                                    
or alcohol use violation.                                                                                                       
                                                                                                                                
Co-Chair von Imhof CLOSED public testimony.                                                                                     
                                                                                                                                
Senator Bishop reviewed the fiscal note.                                                                                        
                                                                                                                                
SB  137  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
SENATE BILL NO. 172                                                                                                           
                                                                                                                                
     "An Act extending the termination date of the State                                                                        
     Medical Board; and providing for an effective date."                                                                       
                                                                                                                                
9:40:48 AM                                                                                                                    
                                                                                                                                
SENATOR DONNY OLSON, SPONSOR, introduced the legislation                                                                        
                                                                                                                                
9:41:19 AM                                                                                                                    
                                                                                                                                
ELIZABETH  REXFORD, STAFF,  SENATOR  DONNY OLSON,  discussed                                                                    
the bill.                                                                                                                       
                                                                                                                                
9:43:00 AM                                                                                                                    
                                                                                                                                
KRIS  CURTIS,   LEGISLATIVE  AUDITOR,  ALASKA   DIVISION  OF                                                                    
LEGISLATIVE AUDIT, discussed the  audit of the State Medical                                                                    
Board.                                                                                                                          
                                                                                                                                
9:49:03 AM                                                                                                                    
                                                                                                                                
Senator Olson  looked at  the issue related  to some  of the                                                                    
shortfalls, and noted the lack  of reporting. He asked about                                                                    
the other state's requirements.                                                                                                 
                                                                                                                                
Ms. Curtis replied in the affirmative.                                                                                          
                                                                                                                                
Senator Olson  queried the  seriousness of  the disciplinary                                                                    
actions.                                                                                                                        
                                                                                                                                
Ms. Curtis replied that they  were civil fine actions, so it                                                                    
depended on the reason for the fine.                                                                                            
                                                                                                                                
Senator Olson looked at page 11,  and noted FY 16, FY 17, FY                                                                    
18 and  remarked on the  100 increase  between FY 16  and FY                                                                    
18. He queried the reason for the significant change.                                                                           
                                                                                                                                
Ms. Curtis  deferred to the  Board chair. She  believed that                                                                    
there was normally an explanation for an increase.                                                                              
                                                                                                                                
9:51:12 AM                                                                                                                    
                                                                                                                                
SARAH  BIGELOW-HOOD,  ALASKA  STATE  MEDICAL  BOARD  MEMBER,                                                                    
ANCHORAGE  (via teleconference),  stated that  there was  no                                                                    
current Chair of the board.                                                                                                     
                                                                                                                                
Co-Chair von Imhof  wondered whether there was  an intent to                                                                    
appoint a new Chair soon.                                                                                                       
                                                                                                                                
Ms.  Bigelow-Hood replied  in  the  affirmative. She  stated                                                                    
that the entire  board was new, and would meet  to decide on                                                                    
a new Chair.                                                                                                                    
                                                                                                                                
9:51:52 AM                                                                                                                    
                                                                                                                                
Senator  Wielechowski noted  that  the  audit recommended  a                                                                    
five-year  extension, but  the  bill only  had a  three-year                                                                    
extension. He queried any thoughts on the difference.                                                                           
                                                                                                                                
Ms.  Curtis replied  that the  recommendation of  five years                                                                    
was based on a cost benefit related to conducting an audit.                                                                     
                                                                                                                                
Co-Chair von Imhof wondered what  happened in the House when                                                                    
presented with the five-year extension.                                                                                         
                                                                                                                                
Ms. Curtis replied  that there was a concern  about the lack                                                                    
of compliance.                                                                                                                  
                                                                                                                                
Senator  Olson wondered  how often  a board  did not  have a                                                                    
Chair   realizing  that   the  members   had  recently   had                                                                    
appointments.                                                                                                                   
                                                                                                                                
Ms.  Curtis  replied  that  it was  highly  unusual  in  her                                                                    
experience,  and  noted  that there  was  something  similar                                                                    
occurring in the Board of Nursing.                                                                                              
                                                                                                                                
Co-Chair von Imhof wondered how  long the Chair position had                                                                    
been vacant.                                                                                                                    
                                                                                                                                
Ms. Bigelow-Hood  replied that  she did  not know,  and that                                                                    
she had only been appointed for approximately one week.                                                                         
                                                                                                                                
Co-Chair von Imhof wondered how  long the Chair position had                                                                    
been  vacant, and  when it  was anticipated  that the  Chair                                                                    
position would be filled.                                                                                                       
                                                                                                                                
9:54:45 AM                                                                                                                    
                                                                                                                                
DAVID BOSWELL, ALASKA STATE  MEDICAL BOARD MEMBER, FAIRBANKS                                                                    
(via  teleconference), responded  that five  of seven  board                                                                    
positions  had only  recently been  appointed in  March. The                                                                    
first order of  business would be to organize  and appoint a                                                                    
Chair.                                                                                                                          
                                                                                                                                
Co-Chair  von  Imhof  wondered why  there  was  almost  near                                                                    
complete turnover on the board.                                                                                                 
                                                                                                                                
Mr. Boswell guessed that it was the need for compliance.                                                                        
                                                                                                                                
Senator  Wielechowski wondered  why  five out  of the  seven                                                                    
people left the board.                                                                                                          
                                                                                                                                
Mr. Boswell replied that he did not know.                                                                                       
                                                                                                                                
Co-Chair von  Imhof wanted  to see the  list of  the current                                                                    
board members and their terms.                                                                                                  
                                                                                                                                
Mr. Boswell replied that his  position was term limit-ed out                                                                    
at eight years.                                                                                                                 
                                                                                                                                
Senator Wilson felt that Ms.  Chambers could address some of                                                                    
the questions.                                                                                                                  
                                                                                                                                
9:57:32 AM                                                                                                                    
                                                                                                                                
SARA CHAMBERS, DIRECTOR,  DIVISION OF CORPORATIONS, BUSINESS                                                                    
AND   PROFESSIONAL   LICENSING,  DEPARTMENT   OF   COMMERCE,                                                                    
COMMUNITY AND ECONOMIC DEVELOPMENT, deferred to Ms. Jones.                                                                      
                                                                                                                                
9:57:54 AM                                                                                                                    
                                                                                                                                
ALYSIA JONES, EXECUTIVE  ADMINISTRATOR, ALASKA STATE MEDICAL                                                                    
BOARD, JUNEAU,  remarked that there  was a full  turnover of                                                                    
the board as of March 3,  2020. She remarked that there were                                                                    
two that had early terminations.                                                                                                
                                                                                                                                
Senator  Wielechowski surmised  that two  member terms  were                                                                    
terminated before their terms were complete.                                                                                    
                                                                                                                                
Ms. Jones agreed.                                                                                                               
                                                                                                                                
Senator   Wielechowski  wondered   why   their  terms   were                                                                    
terminated early.                                                                                                               
                                                                                                                                
                                                                                                                                
Ms.   Jones  replied   that  she   did   not  receive   that                                                                    
information, but were only notified of the changes.                                                                             
                                                                                                                                
Co-Chair  von Imhof  wondered how  the board  member and  by                                                                    
whom they were notified that their term was to end early.                                                                       
                                                                                                                                
Ms. Jones replied that the  Boards and Commission would call                                                                    
and notify the member of the change.                                                                                            
                                                                                                                                
10:00:01 AM                                                                                                                   
                                                                                                                                
Senator   Wielechowski   requested   the  reason   for   the                                                                    
termination of the membership.                                                                                                  
                                                                                                                                
Senator Bishop stressed the importance  of the State Medical                                                                    
Board. He  felt that  there should  be continuity  on public                                                                    
safety.                                                                                                                         
                                                                                                                                
Senator Wielechowski stressed that  the mission of the board                                                                    
was to  protect the health of  the state. He wanted  to know                                                                    
the reason for the turnover.                                                                                                    
                                                                                                                                
Ms. Chambers  would request a  response from  the Governor's                                                                    
Office.                                                                                                                         
                                                                                                                                
Senator  Olson wondered  who would  ensure  that there  were                                                                    
disciplinary actions against the "bad actors."                                                                                  
                                                                                                                                
Ms. Chambers replied that the  board continued to go through                                                                    
the    investigative    process    with    the    department                                                                    
investigators.                                                                                                                  
                                                                                                                                
Senator  Olson   queried  the  last  time   the  board  took                                                                    
disciplinary action.                                                                                                            
                                                                                                                                
Ms. Jones  replied that the  board typically took  action at                                                                    
their  quarterly  meetings,  and  the last  meeting  was  on                                                                    
February 6 and 7 of 2020.  The new board would be meeting in                                                                    
the upcoming May.                                                                                                               
                                                                                                                                
Co-Chair von  Imhof asked whether  the meeting  minutes were                                                                    
available to the public.                                                                                                        
                                                                                                                                
Ms.  Jones replied  that  the meetings  of  the most  recent                                                                    
meeting would be available at the end of the week.                                                                              
                                                                                                                                
10:05:11 AM                                                                                                                   
                                                                                                                                
Senator Olson  assumed that there  was no action  because of                                                                    
the turnover.  He wanted  to know the  last time  action was                                                                    
taken against someone.                                                                                                          
                                                                                                                                
Co-Chair von  Imhof stressed the importance  of disciplinary                                                                    
action.                                                                                                                         
                                                                                                                                
Ms. Jones  replied that the investigations  were ongoing, so                                                                    
the action would be brought  to the board at the appropriate                                                                    
time.                                                                                                                           
                                                                                                                                
Ms.  Chambers  noted  that  if  there  was  a  need  for  an                                                                    
emergency action,  it was initiated by  her department after                                                                    
the information was given, so  a meeting could be called for                                                                    
the action.  She stressed that  all of the  boards, required                                                                    
of turnover, could meet as needed.                                                                                              
                                                                                                                                
Senator Olson appreciated the ability for emergency action.                                                                     
                                                                                                                                
10:07:41 AM                                                                                                                   
                                                                                                                                
RICHARD WEIN, ALASKA STATE MEDICAL  BOARD MEMBER, SITKA (via                                                                    
teleconference),  stated that  he was  a new  member of  the                                                                    
board. He called  in to support the passage of  the bill. He                                                                    
remarked that  was important for  physicians to do  no harm.                                                                    
He felt  that he was  convinced that a meeting  should occur                                                                    
as soon as possible to fully  vet the current issues. He was                                                                    
critically aware  of the issues facing  the board, including                                                                    
coming into compliance with the current audit.                                                                                  
                                                                                                                                
Senator Wilson  stated that he  did not have a  question for                                                                    
Dr. Wein.                                                                                                                       
                                                                                                                                
Co-Chair von Imhof OPENED public testimony.                                                                                     
                                                                                                                                
Co-Chair von Imhof CLOSED public testimony.                                                                                     
                                                                                                                                
10:11:33 AM                                                                                                                   
                                                                                                                                
Senator Wilson remarked that the  board would not be able to                                                                    
pick a new Chair until after confirmations.                                                                                     
                                                                                                                                
Ms. Jones replied in the affirmative.                                                                                           
                                                                                                                                
Senator Bishop reviewed the fiscal note.                                                                                        
                                                                                                                                
Co-Chair von Imhof discussed the following day's agenda.                                                                        
                                                                                                                                
SB 172 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
10:14:06 AM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:14 a.m.                                                                                         
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
SB 172 Explanation of Changes v. A to M 3.4.2020.pdf SFIN 3/11/2020 9:00:00 AM
SB 172
SB 172 Supporting Document - Audit of DCCED State Medical Board w responses 04.16.2020.pdf HFIN 3/22/2020 11:00:00 AM
SFIN 3/11/2020 9:00:00 AM
SB 172
SB 172 Sponsor Statement 3.3.2020.pdf SFIN 3/11/2020 9:00:00 AM
SB 172
SB 137 Parole-Board Sunset Audit 20-20116-19.pdf HFIN 3/19/2020 9:00:00 AM
SFIN 3/11/2020 9:00:00 AM
SSTA 2/18/2020 3:30:00 PM
SB 137
SB 137 Sponsor Statement 2.6.2020.pdf SFIN 3/11/2020 9:00:00 AM
SSTA 2/18/2020 3:30:00 PM
HB 206 work draft version K.pdf SFIN 3/11/2020 9:00:00 AM
HB 206
HB 206 LFD Multi-Year Agency Summary.pdf SFIN 3/11/2020 9:00:00 AM
HB 206
SB 172 DCCED Memo to SFIN 3.13.2020.pdf SFIN 3/11/2020 9:00:00 AM
SB 172