Legislature(2017 - 2018)SENATE FINANCE 532

04/12/2017 01:30 PM FINANCE

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Heard & Held
Moved CSSB 51(FIN) Out of Committee
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 12, 2017                                                                                            
                         1:36 p.m.                                                                                              
1:36:08 PM                                                                                                                    
CALL TO ORDER                                                                                                                 
Co-Chair MacKinnon called the Senate Finance Committee                                                                          
meeting to order at 1:36 p.m.                                                                                                   
MEMBERS PRESENT                                                                                                               
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Click Bishop, Vice-Chair                                                                                                
Senator Shelley Hughes                                                                                                          
Senator Peter Micciche                                                                                                          
Senator Donny Olson                                                                                                             
Senator Natasha von Imhof                                                                                                       
MEMBERS ABSENT                                                                                                                
ALSO PRESENT                                                                                                                  
Lacey Sanders,  Analyst, Legislative  Finance Division;  Sara                                                                   
Chambers,  Deputy   Director,  Corporations,   Business,  and                                                                   
Professional   Licensing,   Division   of     Department   of                                                                   
Commerce,  Community and Economic  Development; Jeff  Jessee,                                                                   
Legislative  Liaison,  Alaska  Mental  Health  Trust;  Teresa                                                                   
Holt, Ombudsman, State Long Term Care.                                                                                          
SB 51     EXTEND BOARD OF VETERINARY EXAMINERS                                                                                  
          CSSB  51 (FIN) was REPORTED  out of  committee with                                                                   
          a "do  pass" recommendation  and with  a previously                                                                   
          published  fiscal note: FN  1(CED). There  being NO                                                                   
          OBJECTION, it was so ordered.                                                                                         
SB 83     PROTECT: VULNERABLE ADULTS/LONG TERM CARE                                                                             
          SB 83 was HEARD and HELD in committee for further                                                                     
SENATE BILL NO. 51                                                                                                            
"An  Act extending  the  termination  date  of the  Board  of                                                                   
Veterinary Examiners; and providing for an effective date."                                                                     
1:37:10 PM                                                                                                                    
Co-Chair  MacKinnon  announced that  a  CS had  already  been                                                                   
1:37:39 PM                                                                                                                    
AT EASE                                                                                                                         
1:37:52 PM                                                                                                                    
1:37:57 PM                                                                                                                    
LACEY SANDERS,  ANALYST, LEGISLATIVE FINANCE  DIVISION, (LFD)                                                                   
clarified  some previous  information  provided  by LFD.  She                                                                   
announced  that the fiscal  note for  extending the  Board of                                                                   
Veterinarian  Examiners  reflected approximately  $3600.  The                                                                   
information   presented   previously   contained   additional                                                                   
information.  The fiscal note  only reflected board  services                                                                   
and  travel, but  there  were  additional costs  above  those                                                                   
costs for  the board of  approximately $138,000.  Those costs                                                                   
would  be continued,  even without  the  continuation of  the                                                                   
board. She furthered  that LFD provided a projection  for the                                                                   
board  continuation  at  the   same  level  of  spending  and                                                                   
revenues.  She stated that  the projection  showed the  board                                                                   
in  a   deficit.  She  stressed   that  the   LFD  projection                                                                   
encouraged  the division  to provide  additional  information                                                                   
on  their  anticipated  revenues  would  be  for  2017,  that                                                                   
deficit projection might contain an adjustment.                                                                                 
Co-Chair  MacKinnon  wondered  whether  the actual  cost  was                                                                   
available.  She recalled an  increase from  $300 to  $500 for                                                                   
the licensees. She  asked what the department  had quantified                                                                   
for   expenses,  or   was  there   a   calendar  and   timing                                                                   
difference.  She remarked  that there  had been an  assertion                                                                   
that the  state was using a  fiscal year, and  the department                                                                   
was  using   a  calendar  year   because  of   the  licensure                                                                   
requirements.  Ms. Sanders  deferred to  the department.  She                                                                   
shared  that she  was provided  with  information within  the                                                                   
Professional Licensing  Report to the Legislature,  which was                                                                   
on a  calendar year  basis. She stated  that the  majority of                                                                   
the  revenue would  be collected  during  the current  fiscal                                                                   
year. She  could not  speak to  the department's  expenditure                                                                   
projections for  2017. She remarked  that the  department was                                                                   
closely monitoring each board.                                                                                                  
Senator  Olson  queried  a  comparison   to  other  board  of                                                                   
comparable  size and  comparable licensee  for the  services,                                                                   
travel, and fixed  costs. Ms. Sanders replied  that she could                                                                   
not  respond with  a comparison,  because she  looked at  the                                                                   
individual boards  on a case by  case basis. She  stated that                                                                   
each board  had its own set  of licensees and their  own sets                                                                   
of requirements.                                                                                                                
1:42:39 PM                                                                                                                    
SARA CHAMBERS,  DEPUTY DIRECTOR, CORPORATIONS,  BUSINESS, AND                                                                   
PROFESSIONAL LICENSING,  DIVISION OF DEPARTMENT  OF COMMERCE,                                                                   
COMMUNITY AND ECONOMIC DEVELOPMENT, introduced herself.                                                                         
Co-Chair MacKinnon  queried the projected expenses  to better                                                                   
understand  the  licensure  and licensee  deficits,  and  the                                                                   
strategy  for reversing  the deficits.  Ms. Chambers  replied                                                                   
that  the  licensing   fee  had  increased  for   FY  17  for                                                                   
veterinarians  from $300  to $500.  She  remarked that  there                                                                   
were no anomalies  with that increase. That  board was fairly                                                                   
conservative,  and comparable  to other  similar boards.  She                                                                   
agreed to provide further information.                                                                                          
Senator  von Imhof  wondered  whether  boards  set their  own                                                                   
fees based  on their  own determined  expenses. Ms.  Chambers                                                                   
responded  that statute  required each  licensing program  to                                                                   
pay 100  percent of its own  expenses. She stated  that there                                                                   
were 44  licensing programs in  the division, with 21  of the                                                                   
boards rolled  into the  professional licensing  fund source.                                                                   
She  remarked  that  there was  a  partnership  between  each                                                                   
board and the division in allocating expenses.                                                                                  
1:45:20 PM                                                                                                                    
Senator von Imhof  wondered how the board would  pay expenses                                                                   
during  a  time  of  board  deficit  reaction.  Ms.  Chambers                                                                   
replied that licensing  programs ran on a  biennial licensure                                                                   
cycle. She  stated that almost  every program would be  in an                                                                   
annual deficit, because  the funds would not  be fulfilled in                                                                   
the given  year. She furthered  that the boards were  able to                                                                   
roll forward  any surplus.  She announced  that the  goal was                                                                   
to identify a  "sweet spot" of surplus that  would carry over                                                                   
through the year without being exorbitant.                                                                                      
Vice-Chair Bishop looked at the one previous fiscal note.                                                                       
Vice-Chair  Bishop  MOVED to  REPORT  CSSB  51 (FIN)  out  of                                                                   
committee  with   individual  recommendations   and  attached                                                                   
fiscal note. There being NO OBJECTION, it was so ordered.                                                                       
CSSB  51 (FIN)  was  REPORTED  out of  committee  with a  "do                                                                   
pass" recommendation  and with a previously  published fiscal                                                                   
note:  FN  1(CED).  There  being  NO  OBJECTION,  it  was  so                                                                   
1:49:13 PM                                                                                                                    
AT EASE                                                                                                                         
1:51:22 PM                                                                                                                    
SENATE BILL NO. 83                                                                                                            
     "An Act relating to the protection of vulnerable                                                                           
    adults and residents of long term care facilities."                                                                         
1:52:01 PM                                                                                                                    
JEFF  JESSEE,  LEGISLATIVE  LIAISON,   ALASKA  MENTAL  HEALTH                                                                   
TRUST, introduced himself.                                                                                                      
TERESA  HOLT, OMBUDSMAN,  STATE  LONG  TERM CARE,  introduced                                                                   
Mr. Jessee  announced that  he accepted  a new position  with                                                                   
the University of Alaska.                                                                                                       
Vice-Chair Bishop thanked Mr. Jessee for his service.                                                                           
Senator von Imhof thanked Mr. Jessee for his service.                                                                           
Co-Chair  MacKinnon thanked  Mr.  Jessee for  his service  in                                                                   
the Alaska Mental Health Trust Authority (AMHTA).                                                                               
Senator  Hughes expressed  her gratitude  and shared  a story                                                                   
of Mr. Jessee.                                                                                                                  
Senator Micciche thanked Mr. Jessee for his service.                                                                            
Mr.  Jessee stated  that  the Office  of  the Long-term  Care                                                                   
Ombudsman was  under the AMHTA  jurisdiction. He  stated that                                                                   
the previous  location  of the  office also  ran some  of the                                                                   
long-term  care facilities  that the office  was supposed  to                                                                   
oversee and  handle complaints. He  shared that the  bill was                                                                   
prompted by  some required changes  at the federal  level. He                                                                   
felt that  the changes  were good  policy, regardless  of the                                                                   
federal requirement.                                                                                                            
2:00:30 PM                                                                                                                    
Ms. Holt announced  that the bill would amend  the provisions                                                                   
of AS 47.62  for the Office of the Long-term  Care Ombudsman;                                                                   
and AS  47.24 for  the Protection  of Vulnerable Adults.  The                                                                   
legislation  would  insure  the   alignment  with  the  Older                                                                   
Americans   Act  and   its  implementing   regulations.   She                                                                   
announced  that   in  2016,  the  Older  Americans   Act  was                                                                   
reauthorized,  and  new regulations  for  the  Office of  the                                                                   
Long-term  Care  Ombudsman were  created.  As  a result,  the                                                                   
Administration  for Community Living  reviewed all  states to                                                                   
ensure compliance with the changes.                                                                                             
Vice-Chair Bishop asked that Ms. Holt identify herself.                                                                         
Ms. Holt introduced herself.                                                                                                    
Ms.  Holt  stated  that  the  review  identified  two  Alaska                                                                   
statutes that  were identified as  out of alignment  with the                                                                   
Older Americans  Act and  the new  regulations. She  believed                                                                   
that, regardless  of the  federal oversight, the  legislation                                                                   
provided good changes  for the program. The  bill would align                                                                   
state  statutes  with  federal statutes  and  regulations  to                                                                   
ensure  the  Office  of the  Long-term  Care  Ombudsman  only                                                                   
shares  resident   information  with  informed   consent;  to                                                                   
ensure  the Office  of  the  Long-term Care  Ombudsman  could                                                                   
obtain  records  to investigate  and  make referrals  when  a                                                                   
resident  was   unable  to  provide  informed   consent;  and                                                                   
provided    new    terms   for    resident    and    resident                                                                   
representative.  She explained  that,  due to  a conflict  of                                                                   
interest, the  legislation removed  the option for  mandatory                                                                   
reporters to  meet reporting  requirements by submitting  the                                                                   
report to  the Office  of the  Long-term Care Ombudsman.  The                                                                   
legislation clarified  a separation in the role  of the Long-                                                                   
term  Care  Ombudsman  from  the  Department  of  Health  and                                                                   
Social Services.  The legislation  clarified that  the Office                                                                   
of  the Long-term  Care Ombudsman  may  serve individuals  in                                                                   
long-term care who were under the age of sixty.                                                                                 
Co-Chair MacKinnon  wondered whether  the committee  wanted a                                                                   
walk-though of the Sectional Analysis.                                                                                          
Senator von Imhof felt that the bill was straightforward.                                                                       
Co-Chair  MacKinnon  wondered   whether  the  bill  had  gone                                                                   
through  the Senate  Judiciary  Committee.  Ms. Holt  replied                                                                   
that it did not.                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
Co-Chair   MacKinnon   announced    that   there   department                                                                   
representatives available for questions.                                                                                        
Vice-Chair  Bishop discussed  the two  zero fiscal notes:  FN                                                                   
2(REV) and FN 1(DHS).                                                                                                           
Co-Chair  MacKinnon announced  that amendments  were due  the                                                                   
following day by noon.                                                                                                          
SB  83   was  HEARD  and   HELD  in  committee   for  further                                                                   
2:05:29 PM                                                                                                                    
The meeting was adjourned at 2:05 p.m.                                                                                          

Document Name Date/Time Subjects
SB 83 ACoA ltr of support.pdf SFIN 4/12/2017 1:30:00 PM
SB 83
SB 83 Transmittal Letter.pdf SFIN 4/12/2017 1:30:00 PM
SB 83
SB 83 support.pdf SFIN 4/12/2017 1:30:00 PM
SB 83