Legislature(2007 - 2008)SENATE FINANCE 532
03/13/2007 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB59 | |
| SB81 | |
| HB18 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 59 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | SB 81 | ||
| = | HB 18 | ||
MINUTES
SENATE FINANCE COMMITTEE
March 13, 2007
9:02 a.m.
CALL TO ORDER
Co-Chair Bert Stedman convened the meeting at approximately
9:02:29 AM.
PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice Chair
Senator Kim Elton
Senator Donny Olson
Senator Joe Thomas
Senator Fred Dyson
Also Attending: DOUG LETCH, Staff to Senator Gary Stevens;
DARWIN PETERSON, Staff to Senator Lyda Green; DENNIS EGAN,
President and General Manager, Alaska Juneau Communication, past
President and current Board Member, Alaska Broadcasters
Association; RICHARD BENEVIDES, Staff to Senator Bettye Davis;
PAT DAVIDSON, Director, Division of Legislative Audit; MIKE
PAWLOWSKI, Staff to Representative Kevin Meyers;
Attending via Teleconference: From Ketchikan: BOB KERN,
President, TLP Communications Inc.; From offnet locations: JAKE
LIBBY, President, Palmer Rotary Club; SCOTT SMITH, President,
Alaska Broadcasters Association; MIKE HOGAN, Executive Director,
Alaska Physicians and Surgeons, Inc.; DENNIS VALENZENO, PhD,
Director, Alaska WWAMI [Washington, Wyoming, Alaska, Montana and
Idaho] Biomedical Program, University of Alaska-Anchorage;
SUZANNE TRYCK, WWAMI
SUMMARY INFORMATION
SB 59-BROADCASTING PROMOTING CHARITABLE GAMING
The Committee heard from the sponsor, a service organization, a
business association and a private business. A committee
substitute was adopted and amended. The bill was reported from
Committee.
SB 81-EXTEND BOARD OF MIDWIVES
The Committee heard from the sponsor and the Division of
Legislative Audit. The bill was reported from Committee.
HB 18-POSTSECONDARY MEDICAL & OTHER EDUC. PROG.
The Committee heard from the sponsor and the University of
Alaska. The bill was held in Committee.
9:03:52 AM
SENATE BILL NO. 59
"An Act relating to the use of broadcasting to promote
charitable raffles and lotteries."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Stedman announced intent to report this bill from
Committee barring any issue raised at this hearing.
9:04:26 AM
Senator Huggins moved for adoption of CS SB 59, 25-LS0410\C, as
a working document.
There was no objection and the committee substitute was ADOPTED.
9:05:24 AM
DOUG LETCH, Staff to Senator Gary Stevens, sponsor of the bill,
testified to the portion of the bill that relates to the use of
broadcast media to promote raffles and lotteries.
9:06:27 AM
Mr. Letch expressed the intent of this bill to "level the
playing field" for Alaska broadcasters. Currently statute
prohibits broadcasters from airing "truthful and non-misleading
advertisements" of lawful charitable gaming activity. Because of
this, those involved in local charitable organizations,
including Boy Scouts of America, Girl Scouts of America, senior
centers, football leagues, little leagues, and others, are not
allowed to utilize radio and television to advertise raffles and
other fundraising events. Such advertisement is allowed in print
media.
Mr. Letch remarked that existing statute could impede "positive
governmental interests" because the Alaska Broadcasting
Association member stations are not allowed to assist non-profit
organizations in efforts to generate funding.
9:07:10 AM
Mr. Letch furthered that the current law could deny broadcasters
equal protection under the federal and State constitutions
because it prohibits "without rational basis" broadcast media
from engaging in conduct allowed for print media. This includes
third-party advertising promoting charitable gaming activities.
Mr. Letch gave as an example the prohibition against the Boy
Scouts of America from advertising its raffles on local radio
stations.
Mr. Letch spoke of his experience in broadcasting in Alaska and
emphasized its importance.
9:07:52 AM
Mr. Letch attested that promotion of small raffles is simple.
However, larger raffles such as the football league in Kodiak
require more promotion, which this legislation would allow.
9:08:59 AM
Co-Chair Stedman requested an explanation of the language of
Section 5 adding a new paragraph to AS 05.15.690 pertaining to a
"cabbage classic" at the Alaska State Fair in Palmer.
9:09:25 AM
Mr. Letch deferred to Senator Green's staff.
9:09:37 AM
DARWIN PETERSON, Staff to Senator Lyda Green, testified that
this language was "selected as a policy call by the Senate
President working with the Palmer Rotary Club." The existing
language of AS 05.15.690 lists the classics for charitable
events permitted by law. Many specify the venue and the
administrator of the classic, including the Kenai River Classic,
which specifies that the Kenai Chamber of Commerce administers
that event.
Mr. Peterson qualified that the cabbage classic location would
not have to be limited to the Alaska State Fair, nor would it
have to be administered by the Palmer Rotary Club. The Palmer
Rotary Club has historically operated the contest and the
contest has always been held at the Alaska State Fair. Senator
Green determined that the language of Section 5 would therefore
be consistent with the remainder of the statute. However, the
Committee could delete such specification from the bill. The
existing classic would be allowed to continue and other cabbage
classics would be allowed as well.
9:11:14 AM
JAKE LIBBY, President, Palmer Rotary Club, testified via
teleconference from an offnet location to the logic of
identifying the cabbage classic as the event held at the Alaska
State Fair. This event is already nationally recognized in
conjunction with the Giant Cabbage Weigh-Off at the Alaska State
Fair. Few other opportunities for a cabbage classic exist.
9:12:30 AM
Senator Olson surmised from the language of Section 3 that youth
organizations in general are unable to participate in charitable
events unless those events are listed as exceptions. He asked
the reason for this.
9:13:02 AM
Mr. Peterson responded that, as a "policy call of the state",
such activities have been closely managed. Specific statutory
authority allows for this oversight.
9:13:21 AM
Senator Olson asked the difference between a raffle and
"outright gambling".
Mr. Peterson answered that the profits of a raffle are paid to
charity.
9:13:34 AM
Senator Elton pointed out that because the provision of Section
5 limits the cabbage classic to the one event held at the Alaska
State Fair, the language of Section 3 referring to "cabbage
classics" should be in the singular rather than plural.
9:14:01 AM
Mr. Peterson agreed.
9:14:06 AM
Amendment #1: This conceptual amendment deletes "cabbage
classics" and inserts "cabbage classic" where it appears in
Section 1 on page 1, line 10; in Section 2 on page 2 line 4; and
in Section 3 on page 2, line 10. The amended language reads as
follows.
Section 1. AS 05.15.100(a) is amended to read:
(a) The department may issue a permit to a
municipality or qualified organization. The permit gives
the municipality or qualified organization the privilege of
conducting bingo, raffles and lotteries, pull-tab games,
ice classics, race classics, rain classics, goose classics,
mercury classics, deep freeze classics, canned salmon
classics, salmon classics, king salmon classics, dog
mushers' contests, snow machine classics, fish derbies,
animal classics, crane classics, cabbage classic, Calcutta
pools, and contests of skill.
Section 2. AS 05.15.115(c) is amended to read:
(c) A permittee may not contract with more than one
operator at a time to conduct the same type of activity.
For the purposes of this subsection, bingo games, raffles
and lotteries, pull-tab games, ice classics, race classics,
rain classics, goose classics, mercury classics, deep
freeze classics, canned salmon classics, salmon classics,
king salmon classics, dog mushers' contests, snow machine
classics, fish derbies, animal classics, crane classics,
cabbage classic, Calcutta pools, and contests of skill are
each a different type of activity.
Section 3. AS 05.15.180(b) is amended to read:
(b) With the exception of raffles, lotteries, bingo
games, pull-tab games, rain classics, goose classics,
mercury classics, deep freeze classics, dog mushers'
contests, snow machine classics, canned salmon classics,
salmon classics, animal classics, crane classics, cabbage
classic, Calcutta pools, and king salmon classics, an
activity may not be licensed under this chapter unless it
existed in the state in substantially the same form and was
conducted in substantially the same manner before January
1, 1959. A snow machine classic may not be licensed under
this chapter unless it has been in existence for at least
five years before the licensing. An animal classic may not
be licensed under this chapter unless it was in existence
before November 1, 2002.
Senator Elton offered a motion for adoption.
Without objection the amendment was ADOPTED.
9:15:52 AM
SCOTT SMITH, President, Alaska Broadcasters Association,
testified via teleconference from an offnet location to
reiterate the Association's desire to better serve the needs of
communities. Currently broadcasters are unable to promote these
charitable events in any way. Broadcasters would like to help
promote and provide outreach to organizations to assist in these
fundraising efforts.
9:17:00 AM
BOB KERN, President, TLP Communications Inc., testified via
teleconference from Ketchikan, that the corporation operates
KFMJ Radio and publishes the local newspaper. He also serves a
member of the Alaska Public Broadcasting Commission (APBC), and
although he was not speaking on its behalf, this legislation
would "favorably impact" the 26 public radio and television
stations overseen by the APBC. Those stations would be allowed
to assist nonprofit groups and organizations in promoting
activities in their communities.
Mr. Kern stated that this bill would also eliminate a "huge
amount of confusion that exists between Alaska and the other
states in the union and FCC [Federal Communications Commission]
regulations." Alaska is one of two states in which stations are
unable to broadcast gaming or lottery announcements.
Mr. Kern told of a situation in which a local radio station in
Ketchikan and the American Diabetes Association "ran afoul" of
State and federal statutes. In a written statement, the FCC
informed it would not prosecute or fine the station because the
Association held a gaming permit issued by the State and the
raffle was not in violation of FCC regulations. State and FCC
rules are not consistent with each other and should be
clarified.
9:20:37 AM
DENNIS EGAN, President and General Manager, Alaska Juneau
Communication, past President and current Board Member, Alaska
Broadcasters Association, testified in Juneau in support of the
bill, reading his testimony into the record as follows.
SB 59 affords a solution to the disparate treatment
currently being imposed on Alaska's broadcasters by current
Alaska statute.
Alaska statute prohibits, but only via radio and
television, the advertising of lawful charitable gaming or
conduct. Newspapers and related media are free to advertise
the very same activity and conduct that radio and
television stations may not advertise.
Recognizing the unfair burden placed upon broadcasters,
Congress passed the Charity Games Advertising Clarification
Act of 1988. It has been in effect since 1990. Congress
opened the door for broadcasters to advertise for a
charity, not to conduct charitable gaming.
The new federal law left it up to the individual states to
ratify the federal law. To this date, nearly every state
has allowed broadcasters in their respective states to
become fully consistent with federal law.
Under the Charity Games Advertising Act signed into law by
President Regan in 1988, federal law prohibits the
acceptance of any advertising from a business is primary
purpose is the conducting of a gaming activity… charitable
or otherwise.
We feel that being allowed to announce that the local
volunteer fire department is having a raffle to raise funds
for CPR equipment, or the senior center is selling tickets
on an afghan to raise funds for the senior citizen Care-A-
Van, or the high school sports teams are selling tickets
for a raffle to raise funds for travel, is not detrimental
to anyone.
Alaska's broadcasters are not trying to suggest to you what
activities should be permissible in the state. What we are
asking is that all media including print, electronic,
direct mail and even the signs we see on municipal buses
have the same ground rules when it comes to promotion.
Congress recognized this inequity with passage of the 1988
Charity Games Clarification Act.
As a federal licensee, broadcasters are one of the most
highly regulated industries in the United States.
We urge you to provide equity, and give your favorable
consideration of SB 59.
9:23:44 AM
Senator Olson requested clarification that Alaska is one of only
two states that allow "blanket charitable events being
advertised."
9:23:54 AM
Mr. Egan affirmed.
9:24:19 AM
Co-Chair Stedman pointed out that the fiscal note may need
modification to account for increased fee generation from the
cabbage classic.
9:25:16 AM
Mr. Letch did not oppose this.
9:25:28 AM
Senator Huggins offered a motion to report CS SB 59, 25-
LS0410\C, as amended from Committee with individual
recommendations and a forthcoming fiscal note.
There was no objection and CS SB 59 (FIN) was REPORTED from
Committee with a forthcoming fiscal note from the Department of
Revenue.
AT EASE 9:26:05 AM / 9:27:57 AM
9:28:01 AM
SENATE BILL NO. 81
"An Act extending the termination date for the Board of
Certified Direct-Entry Midwives; and providing for an
effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
Co-Chair Stedman announced intent to report this bill from
Committee.
9:28:57 AM
RICHARD BENEVIDES, Staff to Senator Bettye Davis, sponsor of the
bill, read the sponsor statement into the record as follows.
Senate Bill 81 extends the sunset date of the Board of
Certified Direct-Entry Midwives until June 30, 2015, in
accordance with the recommendations of the Legislative
Auditor. The legislative auditor has concluded the Board of
Certified Direct-Entry Midwives meets the statutory
requirements of public need and is in compliance with AS
08.01.065(c), which requires occupational licensing fees to
cover the regulatory costs of that occupation.
The board has served as a means to make people practicing
Midwifery aware of the level of experience and education
expected of them. It consists of five members appointed by
the Governor: one public member, two certified direct-entry
midwives (CDMs), one certified nurse midwife, and one
physician licensed by the Alaska State Medical Board who is
either an obstetrician or who has specialized obstetric
training.
Their duties include examining and certificating
applicants, permitting apprentices, holding hearings and
ordering disciplinary sanctions. They maintain all
educational records; approve curricula, training, and
programs for direct entry midwives and apprentices. They
have worked proactively to ensure that public safety has
been maintained while improving the profession of Midwives.
They have successfully incorporated Certified Professional
Midwife standards into Alaska's Certified Direct-Entry
Midwives licensing program and worked with the State to
establish Medicaid procedures for CDM services, thereby
placing Alaska among eight states which both license their
traditional midwives and provide Medicaid reimbursement for
their services. They continue to work to create and revise
regulations that ensure proper training and increase
educational requirements.
Women seeking an alternative to hospital care for normal
pregnancy and birth rely on the diligence of the board to
enhance both the quality and accessibility of their
healthcare. We urge your support on passage of this bill.
9:30:51 AM
Mr. Benevides informed that approximately ten percent of all
births in Alaska are done through midwifery. Additionally,
membership on this board has the highest licensing fee.
9:31:09 AM
Co-Chair Stedman cited a letter to the Division of Legislative
Audit from Dana Brown, Chair of the Certified Direct-Entry
Midwives Board dated October 26, 2006 and included in the audit
report [copy on file] on page 17. The text of the letter reads
as follows.
This is written in response to the preliminary audit report
concerning the Board of Certified Direct-entry Midwives. I
concur with the recommendation that the legislature extend
the termination date of the board to June 30, 2015. My
conclusions are the same as those in the audit report. In
the Analysis of Public Need section on page 8, it implies
that the board increased certification requirements for
apprentice direct-entry supervisors. We tried to do this
but were unable to change regulation because of wording in
statute. Someday the Midwives Association of Alaska will
need to go to the legislature and try to get legislation
passed to change wording in statute so that certain regs.
can be addressed. I concur with the rest of the report. I
am very pleased with the report.
AT EASE 9:32:14 AM / 9:32:23 AM
Mr. Benevides was unaware of specific regulatory changes sought
by the Board.
9:32:44 AM
Senator Olson asked the number of licensees in the State.
9:32:51 AM
Mr. Benevides deferred to the Division of Legislative Audit.
9:32:59 AM
PAT DAVIDSON, Director, Division of Legislative Audit, listed
the number of Certified Direct-Entry Midwife (CDM) licensees at
the end of 2006 as 28 and the number of registered apprentices
at that time as eight.
Senator Olson asked the number of births and the number of "bad
outcomes".
9:33:34 AM
Ms. Davidson did not know the number of births performed or the
number of negative outcomes. The Division reviews the
investigations conducted by the Board and the outcomes of those
investigations. It found that investigations were conducted in a
timely manner and with satisfactory outcomes.
9:34:07 AM
Senator Olson asked if any disciplinary actions against members
were taken in the past year.
9:34:17 AM
Ms. Davidson did not know.
Senator Olson asked the number of disciplinary actions taken in
the history of the Board.
9:34:43 AM
Ms. Davidson again did not have the information, but assured she
would research the matter.
9:34:54 AM
Senator Olson asked if Certified Direct-Entry Midwives have
authority to prescribe any medication.
9:35:01 AM
Ms. Davidson did not know.
9:35:04 AM
Mr. Benevides interjected that midwives are prohibited from
practicing unless they are located within a certain number of
miles to a practicing doctor. Additionally, midwives are
prohibited from performing any "medically difficult" births. The
last disciplinary action taken by the Board was against a person
practicing without a license.
9:35:59 AM
Senator Olson asked about the continuing education requirements
and whether those requirements have changed in recent years
similar to changes imposed by the State medical board.
9:36:17 AM
Mr. Benevides could not speak to the details of continuing
education requirements.
9:36:36 AM
Co-Chair Stedman asked Ms. Davidson's recommendation on the
aforementioned need for statutory changes.
9:36:39 AM
Ms. Davidson did not have adequate information to provide a
complete answer. The Division determines whether boards or
commissions are able to "carry out their business" and "leaves"
necessary statutory changes to the board or commission to
pursue.
9:37:31 AM
Co-Chair Stedman, noting that the Board was operating at a
deficit, asked whether the license fee rates should be
reevaluated.
9:38:08 AM
Ms. Davidson directed attention to Exhibit 1 of the Analysis of
Public Need on page 9 of the audit report. Exhibit 1 is a
spreadsheet titled, "Board of Certified Direct-Entry Midwives,
Schedule of License Revenues and Board Expenditures, FY 03 - FY
06, (Unaudited)". Fees are levied on a two-year basis, with the
Board receiving most revenue every second year, including FY 05
and FY 03. The lesser revenue generated in the intervening years
should be adequate to sustain the program through that year. The
greater amounts collected in subsequent years have been utilized
to reduce the cumulative deficit. She highlighted the Ending
Cumulative Deficits for FY 03: $8,188; FY 04: $45,026; FY 05:
$13,000; and FY 06: $24,395. This pattern of reduction to the
deficit would continue as fee rates would be unchanged for 2007.
The balance should be zero barring any unforeseen spending
increases, and at that time the fee should be reduced.
Ms. Davidson informed that expenditures "spiked" in 2002 and
2003 primarily in contractual costs with the Department of Law
and for investigations.
9:40:25 AM
Co-Chair Stedman asked about the high litigation costs
referenced in the audit report.
9:40:37 AM
Ms. Davidson pointed out that statute requires that occupational
boards must be self financed. Therefore, the board incurs the
costs associated with investigations, legal actions and drafting
of new legislation. The increased costs incurred by this board
do not cause "particular concern". A board with as few members
as the Board of Certified Direct-Entry Midwives has high
licensing fees.
9:41:34 AM
Senator Thomas asked why the personal services and contractual
expenses of FY 03 and FY 04 were higher than FY 05 and FY 06.
9:42:03 AM
Ms. Davidson responded that the contractual costs are comprised
of legal fees involving investigations. She could not address
the disparities in the personnel services costs.
9:42:33 AM
Senator Thomas, citing page 10 of the audit, noted that the
Division of Occupational Licensing, Department of Commerce,
Community and Economic Development, opened nine investigative
cases during the period of July 2002 and June 2006 pertaining to
the Board of Certified Direct-Entry Midwives. He asked if any of
these investigations were ongoing at this time and whether
additional legal fees associated with the complaints were
expected.
9:43:18 AM
Ms. Davidson had no direct information. Fees associated with the
investigative cases depend on the direction each case takes.
Investigation and legal fees concern all boards and commissions
because their expense requires license fees to "swing" from one
year to the next. However, these boards and commissions must
deal with the costs of investigations and be self sufficient.
9:44:20 AM
Senator Elton, returning to the letter from the Board Chair on
page 17 of the audit report, suggested "cognitive differences"
exist between the understanding of the Board and that of the
Division of Legislative Audit. He cited a finding on page 12 of
the audit, which reads as follows.
It appears that the board has effectively and efficiently
obtained its objectives and purposes. In proposing
regulatory changes, the board has worked to ensure the
objective of the regulation is clearly defined. They have
provided for consistent language throughout the Certified
Direct-Entry Midwives regulations and have updated the
regulations and statutes to reflect new changes in the
professional environment. Evidence suggests the board
establishes and meets its operational objectives annually.
Senator Elton surmised that the audit report deems the Board to
be solely responsible for drafting legislation, although the
Board itself is "complaining" that it could not draft
regulations.
Senator Elton commented that he supports this Board. Members of
the profession have not protested the amount of the licenses.
9:45:59 AM
Ms. Davidson would discuss the matter with the Board Chair. The
Board claims it could not draft regulations because it does not
have statutory authority. However, the Division of Legislative
Audit has determined the Board does have sufficient authority.
9:46:34 AM
Senator Huggins asked if a "clear message" could be gleaned from
the number and types of complaints filed, as listed on page 10
of the audit.
9:46:59 AM
Ms. Davidson perceived no clear message. The Division of
Legislative Audit reviews the types of complaints and their
source. Because most of the complaints were filed by a Peer
Review Committee member (67 percent) or by another governmental
agency (22 percent), the issues were primarily administrative,
such as incomplete applications.
9:47:54 AM
Senator Olson pointed out the current licensing fee of $2,088
and asked whether the profession had "any relief in sight" that
could encourage more people to enter the midwifery field.
Midwifery offered a "nice option" for those physicians unwilling
or unable to perform births due to high malpractice insurance
rates.
9:48:33 AM
Ms. Davidson responded that the license fees could not be
reduced because the governing Board must be self sufficient.
9:48:54 AM
Mr. Benevides recalled testimony provided in the previous
committee of referral on this bill from a CDM expressing
willingness to pay the large amount because that person "loved
their job". This midwife was reassured that the activities of
those in the profession were overseen by the Board.
Mr. Benevides informed of two different regulations published
the prior month pertaining to reimbursement and facility
reimbursement for Certified Direct-Entry Midwives. Those
regulations could be the same as those referenced in the letter
by the Board Chair. A new set of proposed regulations has also
been opened to public comment.
9:50:13 AM
Senator Huggins, referring to Senator Olson's statement that
some doctor's could be unable to afford malpractice insurance,
hypothesized that a "lower profile of litigation" could result
in lower insurance rates for midwives. Senator Huggins commented
in the irony that the "least qualified" professionals with the
"highest risk" would have the lowest profile.
9:51:01 AM
Senator Olson corrected any misinterpretation of his earlier
remarks asserting that midwives are "very well trained" with
skill levels equal to many doctors. Midwives do no have the
ability to perform surgery and therefore are unable to perform
cesarean section births.
9:51:39 AM
Senator Huggins asked the type of insurance carried by Certified
Direct-Entry Midwives.
9:51:50 AM
Mr. Benevides was unsure. Because of "law structure" midwives
are not allowed to participate in high risk pregnancies.
9:52:12 AM
Senator Olson shared that CDMs normally participate in group
insurance coverage. License fees are often paid by the
corporation that employs the midwife or the organization in
which the midwife practices.
9:52:37 AM
Senator Dyson suggested that the discussion on this bill
highlighted a policy issue. The Legislature's determination that
all boards and commissions must be financially self sufficient
could provide an adverse incentive for these boards to
adequately "police" their members. Investigations increase a
board's operating costs and licensure fees must subsequently be
increased. This issue is most predominant in the mental health
boards, as the boards that have prosecuted the most cases also
have the highest license fees. As a result new members to the
mental health care profession consider joining boards with lower
fees. This reduces the membership on the boards that diligently
pursue the conduct of its professionals.
9:54:09 AM
Senator Huggins offered a motion to report the bill from
Committee with individual recommendations and accompanying
fiscal note.
There was no objection and SB 81 was REPORTED from Committee
with zero fiscal note #1 from the Department of Commerce,
Community and Economic Development.
AT EASE 9:54:53 AM / 9:56:35 AM
9:56:38 AM
SENATE CS FOR CS FOR HOUSE BILL NO. 18(SED)
"An Act amending the functions and powers of the Alaska
Commission on Postsecondary Education; and relating to the
repayment provisions for medical education and
postsecondary degree program participants."
This was the second hearing for this bill in the Senate Finance
Committee.
9:57:02 AM
Co-Chair Stedman announced that the Committee would review
additional information but would not report this bill from
Committee at this time. Fiscal issues must be addressed.
9:57:26 AM
MIKE PAWLOWSKI, Staff to Representative Kevin Meyers, sponsor of
the bill, testified to a memorandum dated February 26, 2007 from
Representative Meyer to Co-Chair Stedman [copy on file]. Mr.
Pawlowski noted this memorandum addressed questions raised at
the previous hearing and highlighted the responses to Co-Chair
Hoffman's questions as follows.
1. What is the long-term effectiveness of the WWAMI
program? How many WWAMI [Washington, Wyoming, Alaska,
Montana and Idaho] graduates are still practicing in the
State of Alaska?
a. The first WWAMI class graduated in 1975. 60% of all
WWAMI graduates are still practicing in Alaska today.
2. How many WWAMI graduates practice in Bethel? How many
WWAMI graduates practice in rural Alaska?
a. While WWAMI graduates have previously practiced in
Bethel and Western Alaska, there are none currently
practicing in the region. Students have however, been
accepted from the area and students from rural Alaska
represent a significant portion of the incoming WWAMI
classes. Out of the 60% of WWAMI graduates practicing
in Alaska, almost 1 in 4 are currently practicing in a
rural community, compared to only 1 in 10 in the other
WWAMI states.
9:59:18 AM
Mr. Pawlowski continued overviewing the memorandum and the
question posed by Senator Elton as follows.
3. Address whether the Senate Special Committee on
Education's amendment functions to increase or decrease the
chances a participant will go in to general/family
practice. Did the amendment increase the participant's
costs in light of the fact that family practice is one of
the lowest paid specialties in medicine?
a. The answer to the first part of the question is
difficult since it requires speculation on an
individual's educational and professional choices. The
amendment clearly increases the debt burden a student
takes on during their studies and through their
residency. For example, if a student borrowed their
portion of tuition, the obligation they would have
accrued after 3, 5, or 7 years of residency at the
current interest rate of 7.5% would be:
3 years: $93,172
5 years: 107,672
7 years: 124,429
When viewed in combination with the student's tuition
payments of $15,500 per year, a WWAMI student is faced
with the prospect of coming out of residency with as
much as $200,000 in outstanding obligations, in
addition to whatever they accrued during their
undergraduate career. If interest didn't accrue, the
student's WWAMI obligation would be $75,000. Whether
this difference pushes an individual toward one
particular specialty or another is difficult to say.
However, in accruing a higher obligation a person has
substantially increased their incentive to return to
Alaska to practice.
10:00:23 AM
Co-Chair Stedman noted information regarding the Alaska WWAMI
Biomedical Program website was submitted by Senator Olson [copy
on file].
10:00:53 AM
MICHELLE RISK, University of Alaska, testified via
teleconference from an offnet location that she was available to
respond to questions on the fiscal note.
10:01:13 AM
MIKE HOGAN, Executive Director, Alaska Physicians and Surgeons,
Inc., testified from an offnet location that he was also
available to respond to questions. He voiced support of the
bill.
10:01:31 AM
Co-Chair Stedman learned that Pete Kelly, Director, Office of
Government Relations, University of Alaska, and Diane Barrans,
Executive Director, Postsecondary Education Commission,
Department of Education and Early Development, were available to
respond to questions.
10:02:05 AM
Co-Chair Stedman spoke to the cost of the program to the State
and the "potential impact in years to come". He asked Ms. Risk
to address the cost implications.
10:02:27 AM
Ms. Risk asked whether the Committee had received a revised
fiscal note from the University of Alaska.
10:02:45 AM
Co-Chair Stedman established that the Committee did have this
fiscal note in its possession along with the two fiscal notes
adopted by previous committees.
10:03:26 AM
Co-Chair Stedman commented on the "shear magnitude" of the
revised fiscal note and inquired whether the costs could be
"absorbed" in the University of Alaska's and the WWAMI program's
budgets.
10:03:38 AM
Ms. Risk pointed out that the University would contribute
$180,000 University Receipt funds in FY 08.
10:04:04 AM
Senator Elton directed attention to the $30,000 travel
expenditure listed on the revised fiscal note and asked for an
explanation of the travel involved in the operation of the
program.
10:04:18 AM
Ms. Risk replied that the revised fiscal note contains funding
for two new faculty positions and support staff positions to
accommodate the increase of the program from ten to 20 students.
The funding specified in the travel component would cover
expenses incurred by all of the program's positions. Travel
would be to the other states participating in the program.
10:04:54 AM
Senator Elton asked the purpose of the travel to the other
states.
10:05:08 AM
Ms. Risk answered that the travel is necessary to allow faculty
to "learn about the program."
10:05:24 AM
DENNIS VALENZENO, PhD, Director, Alaska WWAMI Biomedical
Program, University of Alaska-Anchorage, testified via
teleconference from an offnet location, about the two additional
faculty positions. WWAMI is a collaboration of several states.
Participating faculty congregate to discuss the program.
10:06:15 AM
Senator Elton noted that at least one annual trip occurs.
10:06:22 AM
Dr. Valenzeno affirmed that one trip occurs at the end of the
school year. Additionally, other travel is necessary to address
changes to the program.
10:06:40 AM
Co-Chair Stedman requested an explanation of the change in
number of positions.
10:06:50 AM
Ms. Risk informed that two new full time positions would be
created and that two existing part time positions would be
expanded to full time positions.
10:07:22 AM
Co-Chair Stedman asked the cost breakdown of the positions.
10:07:25 AM
Ms. Risk answered that $40,000 would be utilized to fund the
expansion of the part time positions. The remainder of the
$250,000 Personal Services component would be utilized for the
salary and benefits of the two new full time positions.
10:07:42 AM
Co-Chair Stedman asked if the professors participating in this
program teach only to WWAMI students.
10:07:50 AM
Dr. Valenzeno replied that the faculty instructs WWAMI students,
as well as undergraduate and graduate students, particularly in
the biology and chemistry courses.
10:08:22 AM
Senator Olson asked if the two new faculty positions would be
clinical or professors.
10:08:36 AM
Dr. Valenzeno answered that one position would be a "fulltime
basic scientist" and the other position would be categorized as
one-half basic scientist and one-half clinical scientist.
10:08:56 AM
Senator Olson informed that some travel expenses include the
costs of students traveling to rural sites. He has experienced
WWAMI students traveling in Nome and Barrow.
10:09:07 AM
Senator Thomas asked the number of students currently on the
waitlist to enter the WWAMI program and the duration of the
waitlist. He commented on the need to pass this legislation in a
timely manner to allow those students who would be allowed to
participate in the expanded program to apply for acceptance in
medical school in Washington.
10:09:41 AM
SUZANNE TRYCK testified via teleconference from an offnet
location identifying herself as "from the University of
Washington side of the Alaska WWAMI Program". Currently ten
additional students are on the waitlist and have "already been
determined to be accepted into the program." The letters of
invitation for "the first ten" had been mailed. The ten students
on the waitlist, "will, we fear, go away with each succeeding
day; they probably have letters of invitation from other medical
schools." Therefore the timing "is an issue for us."
10:10:38 AM
Senator Elton requested that because of the timing issue, the
Committee consider reporting this bill to the next committee of
referral with the expectation that the fiscal notes could be
addressed "within the next couple of days" and finalized by
another committee.
10:11:34 AM
Co-Chair Stedman acknowledged the testimony regarding the
urgency of this legislation. He also noted the Committee was in
the process of addressing the University of Alaska budget, which
correlates to the funding of the Alaska WWAMI program.
10:12:06 AM
Co-Chair Hoffman expressed concerns about the revised fiscal
note. The WWAMI program could be beneficial in alleviating the
shortage of doctors practicing in Alaska. However, the health
care profession needs in rural areas "far outweighs" the needs
in urban areas. He expressed interest in including a provision
in this bill that would "give direction" and result in some
additional physicians practicing in rural areas. As currently
written, this legislation could facilitate an increase in
doctors practicing in Alaska but no increase in doctors
practicing in Rural Alaska.
10:13:30 AM
Senator Olson deemed the issue of less concern. Physicians
practicing in rural locations would have incentive to accept
offers of employment in urban centers. However, if urban centers
were adequately represented, fewer offers would be extended to
physicians in rural areas and thus those physicians would more
likely remain in their current practice.
10:14:51 AM
Senator Olson offered a partial solution to the fiscal concerns.
Rather than expanding the program to admit ten additional
students, a compromise could be made and five additional
students could be allowed to participate.
10:15:29 AM
Co-Chair Stedman indicated he would collaborate with Senator
Olson to develop the proposal. The fiscal impact of this
legislation would be addressed through the regular budget
process.
10:15:53 AM
Co-Chair Stedman ordered the bill HELD in Committee.
AT EASE 10:17:27 AM / 10:17:40 AM
ADJOURNMENT
Co-Chair Bert Stedman adjourned the meeting at 10:17:40 AM
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