Legislature(2011 - 2012)SENATE FINANCE 532
02/01/2012 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB119 | |
| SB38 | |
| SB83 | |
| SB115 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 119 | TELECONFERENCED | |
| + | SB 38 | TELECONFERENCED | |
| + | SB 83 | TELECONFERENCED | |
| + | SB 115 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
February 1, 2012
9:00 a.m.
9:00:38 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:00 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Lesil McGuire, Vice-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None
ALSO PRESENT
Senator Kevin Meyer; Brenda Sheldon, President, Alaska
Athletic Trainers Association; Christopher Dean, Athletic
Trainer; Don Habeger, Director, Corporations, Business, and
Professional Licensing; Jim Puckett, Director, Division of
Retirement and Benefits; Aaron Danielson, Public Safety
Employee Association; Chris Gifford, Municipal Chapter
President, Public Safety Employee Association; Derek Hsiel,
Anchorage Police Department Employee Association; Eric
Tuott, Anchorage Firefighters; Murray Richmond, Staff,
Senator Joe Thomas; John Alcantra, Government Relations,
National Education Association, Alaska; Linda Hall,
Director, Division of Insurance; Christine Marasigan,
Staff, Senator Kevin Meyer
PRESENT VIA TELECONFERENCE
Larry Semmens, City Manager, City of Soldotna; Ron Thorpe,
President and CEO, National Board for Professional Teaching
Standards, Washington DC; Pete Lewis, Superintendent,
Fairbanks North Star Borough School District; Tammy Smith,
Fairbanks Education Association; Stephen McDaniel, Asurion,
Florida
SUMMARY
SB 38 Police and Firefighter Death Benefits
SB 38 was HEARD and HELD in committee for further
consideration.
SB 83 Teacher Board Certification Incentives
SB 83 was HEARD and HELD in committee for further
consideration.
SB 115 Portable Electronics Insurance
SB 115 was HEARD and HELD in committee for
further consideration.
SB 119 Athletic Trainer Licensing
SB 119 was HEARD and HELD in committee for
further consideration.
SENATE BILL NO. 119
"An Act relating to the licensing and regulation of
athletic trainers."
9:01:37 AM
SENATOR KEVIN MEYER, introduced SB 119. He explained that
athletic trainers were certified, health care professionals
who practice in the field of sports medicine. The
profession played a significant role in the management,
prevention, recognition and rehabilitation of injured
athletes under the supervision of a license physician. As
people became increasingly more active, athletic trainers
were a vital resource in administering immediate emergency
care as well as injury prevention and treatment.
BRENDA SHELDON, PRESIDENT, ALASKA ATHLETIC TRAINERS
ASSOCIATION, spoke in support of SB 119. She noted that
Alaska was one of three states that did not license
athletic trainers. She explained that athletic trainer
clients ranged from athletes to industrial workers. She
noted that athletic trainers were often the first to
respond in the cases of injuries.
Ms. Sheldon explained that SB 119 would require everyone in
Alaska who considered themselves athletic trainers to be
licensed. She explained that she was an athletic trainer,
and shared her personal feelings about the importance of SB
119.
9:07:06 AM
CHRISTOPHER DEAN, ATHLETIC TRAINER, testified in support of
SB 119. He explained that SB 119 would ensure quality
medical care for the athletes in Alaska. He stressed that
some parents had become dependent on athletic trainers.
Co-Chair Stedman noted the new fiscal impact note from
Department of Commerce, Community and Economic Development,
and a new zero fiscal note from the Department of
Administration.
Senator Thomas wondered if the initial licensing fee of
$900 would be covered in the bill. Senator Meyer replied
that the $900 could possibly be covered by the state. He
hoped to discuss reasons why the licensing was so high.
Senator Thomas agreed that the fee was very high.
DON HABEGER, DIRECTOR, CORPORATIONS, BUSINESS, AND
PROFESSIONAL LICENSING, explained that the licensing fee
was high, because it was expensive to install a program
into the system. He stressed that once the system was
implemented, the program would be complete with application
accessibility. He stated that there was a belief that the
program could easily get absorbed into the existing staff.
9:14:49 AM
Senator Thomas wondered if the cost was high because there
were a small number of individuals who were interested in
applying. He felt it could be a simple implementation. Mr.
Habeger replied that it was a statutory requirement to
charge the user fees in implementation. He stressed that
the fee was legitimate.
Senator Thomas wondered how many people were anticipated to
be licensed. Mr. Habeger replied that there was no way he
could predict that number, but relied on the Athletic
Trainer Association to provide that number.
Senator Olson wondered if there was a licensing board that
would have a small number of licensees. Mr. Habeger noted
that a similar program was the Midwife Board, and their
biennial program fee was about $2000.
Senator Olson wondered if there was a process to pay for
the investigator to deal with the complaint. Mr. Habeger
noted that there were recent discussions regarding the Real
Estate Commission, and those costs could spike.
Senator McGuire wondered how the school districts would
intersect into the program. She wondered if the costs would
be passed on to the school district. Senator Meyer deferred
to a school district employee.
Senator McGuire restated that she was concerned with the
costs for the school districts. Mr. Dean replied that
currently no school district in Alaska employed athletic
trainers. He stressed that the school districts in
Fairbanks were highly dependent on benefactors.
9:21:44 AM
Mr. Dean noted that midwives had a board, but the athletic
trainers do not have a board. He felt that athletic
trainers could be better compared with nutritionists.
Senator Egan wondered if the fees would increase if there
was an investigation regarding licensing issues. Mr.
Habeger replied that the division had an investigative unit
that was responsible for any violation of Title A. If
investigators determined that there was a violation, then a
process occurred with the possibility for many different
outcomes. He stressed that most of the time there were low
cost issues, but if there was a legal process then the
Department of Law would be involved.
Senator Egan wondered if there would be background checks
for people that applied for licenses. Mr. Habeger replied
that if the applicant remained current with the national
organization, then the applicant would be eligible for a
state license.
9:27:07 AM
Senator Olson noted that Mr. Dean had declared that
athletic trainers were more like nutritionists than
midwives, and wondered if Mr. Habeger agreed with that
assumption. Mr. Habeger did not know the specifics of the
Nutritionist program. He noted that Naturopaths had a fee
of $400, and did not have a board.
Senator Olson wondered what penalties would be incurred if
the license were suspended. Senator Meyer replied that the
licensees were overseen by the National Board.
Senator Olson noted that there was an issue of diagnosing
and treatment. He expressed concern that athletic trainers
were not authorized to practice medicine. Senator Meyer
stressed that there were specific requirements for people
that call themselves athletic trainers. He also stressed
that they were not going to practice medicine. He stated
that he did not know how the bill would apply to rural
areas, but agreed to provide that information.
SB 119 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 38
"An Act establishing a one-time occupational death
benefit for peace officers and firefighters."
9:33:16 AM
Senator Meyer stated that SB 38 would provide a one-time
payment of $100,000 occupational death benefit established
in Section 2 of the draft bill. It would provide that the
payment may not be made to anyone but a surviving spouse of
a dependent child of a peace officer. He stressed that the
death of a peace officer was fairly rare in Alaska. He
noted several letters of support. He noted that the average
age of a peace officer who dies in the line of duty was 38-
years-old. He stressed that the bill was especially
important, because the officer may have small children that
needed financial support.
Co-Chair Hoffman wondered what other states programs were
in comparison to this bill. Senator Meyer stated that each
state had different programs. CHRISTINE MARASIGAN, STAFF,
SENATOR KEVIN MEYER, stated that 39 other states provided
similar benefit. She said the benefit ranged from $25,000
to $400,000.
Senator Egan requested an explanation of the fiscal note's
continual increase over time. Ms. Marasigan noted that
there was some information required related to liability.
She stressed that there was some actuary liability studies.
Senator Meyer added that there was anticipation of one
death per year.
9:38:49 AM
Senator Olson looked at the pension fund, and wondered if
the peace officers would be required to pay higher
insurance because of the potential of more deaths. Senator
Meyer believed that the money would be used from the
unfunded liability, meaning that the money was already
available.
Senator Olson wondered if there were other death benefits
for officers that die in the line of duty. Senator Meyer
replied that there were some life insurance benefits.
JIM PUCKETT, DIRECTOR, DIVISION OF RETIREMENT AND BENEFITS,
introduced himself.
Co-Chair Stedman wondered what the tier 4 employees'
benefits would be. Mr. Puckett replied that they would
receive the DCR balance.
Co-Chair Stedman surmised that the benefit would be zero.
Mr. Puckett agreed to provide more information regarding
tier 4 employee benefits.
Co-Chair Stedman requested information regarding the
structure of the tier 4 benefits, because he would like to
look at the comparative differences between a new employee
and one that had been employed for 20 years. Mr. Puckett
explained that if there was a loss of life due to accident
on the job, there would be a life insurance benefit of
$100,000 and the Supplemental Benefit System (SBS). He
stated that he would provide further information regarding
new employees.
Senator Olson wondered when the benefits would begin
following the death. Mr. Puckett replied that basic life
insurance would occur immediately, and the check would be
disclosed within a week following the incident.
9:44:21 AM
Co-Chair Stedman requested written information in grid-form
regarding the tier system benefits and structures. Mr.
Puckett agreed to provide that information.
Senator Egan wondered if it there was an assumption of one
death per year, when the calculations were made. Mr.
Puckett replied that the one death per year was the basis
of the calculation.
Senator Egan wondered how the unfunded liability increased
$650,000. Mr. Puckett requested further information
regarding Senator Egan's reference of $650,000. Co-Chair
Stedman stated that it was in the Buck Analysis, second
paragraph last sentence. He felt that the accumulation of
expenditures was added to the negative side of the balance
sheet.
Co-Chair Stedman wondered who picked up the tab: the city
or the state. He explained that the state would be required
to provide the funds, because the cities were capped at 22
percent. He felt that there would be a broader discussion
related to that topic.
AARON DANIELSON, PUBLIC SAFETY EMPLOYEE ASSOCIATION,
testified in support of SB 38. He felt that the bill
addressed the families of the officer greatest concern. He
pointed out that the bill would provide peace of mind.
9:49:34 AM
CHRIS GIFFORD, MUNICIPAL CHAPTER PRESIDENT, PUBLIC SAFETY
EMPLOYEE ASSOCIATION, spoke in support of SB 38. He
stressed the importance of the benefit of the families of
the officers.
DEREK HSIEL, ANCHORAGE POLICE DEPARTMENT EMPLOYEE
ASSOCIATION, testified in support of SB 38. He focused on
the reality of death in the line of duty. He pointed out
that training for death was a requirement for peace
officers. The training was used to inoculate the
understanding of death. He pointed out that when officers
were killed in the line of duty, the work for the day
continued. He stressed that death was expensive, and
sometimes there were extra costs incurred by the family. He
stressed that sometimes business contributions off-set
costs, but smaller communities might not have that benefit.
9:54:10 AM
Senator McGuire noted that $100,000 might not be a
substantial amount of money. She wondered if there were any
scholarship opportunities for dependents. She hoped there
may be a possibility for a four-year scholarship for an in
state college for children. Mr. Hsiel pointed out some
benefits in the military. He felt that the added benefits
would be left to the legislature's discretion.
Senator McGuire requested more information regarding
scholarships, and noted a summary of the record of peace
officer deaths in Alaska. She also would like to see a
scholarship benefit possibility. Co-Chair Stedman noted
that those requests should be directed at the bill sponsor
and the Department of Public Safety.
9:59:14 AM
ERIC TUOTT, ANCHORAGE FIREFIGHTERS, testified in support of
SB 38. He stated that he was married with a three-year-old
daughter, so his family would be greatly affected if he was
killed in the line of duty. He stressed that deaths did not
happen frequently, but did occur occasionally.
LARRY SEMMENS, CITY MANAGER, CITY OF SOLDOTNA (via
teleconference), testified against SB 38. He stressed that
the employees were already covered by occupational death
benefits. If SB 38 passed, He thought it was a poor time to
add benefits that would increase the unfunded liability. He
indicated we should be working to reduce the unfunded
liability, and not add benefits.
Co-Chair Stedman pointed out the new fiscal impact note
from the Department of Administration, for a zero-cost in
FY 2013. However, the there was an anticipated $175,000
general fund increase in the annual employer contribution
amount beginning in FY 2014, with incremental increases in
the following years. He stressed that there would be an
impact on the unfunded liability.
10:07:23 AM
Senator Olson wondered what community contribution would
be. Senator Meyer replied that the local contribution was
currently 22 percent.
Senator McGuire referenced Title 14.43.085.
Senator Meyer thanked the committee.
SB 38 was HEARD and HELD in committee for further
consideration.
10:09:33 AM
AT EASE
10:13:39 AM
RECONVENED
SENATE BILL NO. 83
"An Act providing for payment and loan incentives to
public school teachers for national board
certification."
10:14:16 AM
Senator Thomas explained SB 83. He referred to the Sponsor
Statement (copy on file):
Teaching is one of the most difficult and important
jobs we have in our society. In order to have good
schools, we must have good teachers.
Senate Bill 83 provides an incentive for teachers to
ramp up their professional knowledge and skills by
becoming nationally certified by the National Board of
Professional Teaching Standards. Teachers would be
provided with zero interest loans designed to pay the
expense of enrolling in the program. Once certified
they would receive a $1,000 annual stipend for the
duration of their certification period (ten years).
If the teacher is serving in a low performing, high
poverty area they would receive a $1,000 stipend for
enrolling in the program, and $1,500 loan for the rest
of the expense. They would also receive an additional
$500 annually as long as they remained in a low
performing, high poverty area.
Becoming nationally certified is a rigorous and
demanding process, and can take up to three years.
There are 25 different areas of certification (see
page 7 of the packet), and teachers specialize in
their specific subject area. The certification process
focuses on five aspects of teaching: Students and
their learning, the subjects being taught and how to
teach them, managing and monitoring student learning,
thinking systematically about the practice of
teaching, and being members of the learning community.
We appreciate your support on this important bill.
MURRAY RICHMOND, STAFF, SENATOR JOE THOMAS, explained SB 83
further. He stressed that the board was nationally
recognized, and noted that certification was a rigorous
three-year process. He explained the sections of the bill.
10:19:26 AM
Co-Chair Stedman noted the new zero fiscal note from the
Department of Education and Early Development for the
Commission on Post-secondary Education and the new fiscal
impact note from the Department of Education and Early
Development for Teaching and Learning Support.
RON THORPE, PRESIDENT AND CEO, NATIONAL BOARD FOR
PROFESSIONAL TEACHING STANDARDS, WASHINGTON DC (via
teleconference), testified in support of SB 83. He
explained that the board was at the forefront of high
quality teaching education. He felt that board membership
would provide peace of mind to parents. He emphasized that
board certification standards were very high. He stressed
that students who were taught by board-certified teachers
displayed higher test scores.
10:24:42 AM
Mr. Thorpe discussed the national board certified teachers
in Alaska. He stated that there were currently 135 National
Board Certified teachers in Alaska, with over 40 percent
teaching in Anchorage and 20 percent in Fairbanks. He
stressed that the number of certified teachers represented
only 1.5 percent of the Alaska K-12 workforce. He stressed
that the number of certified teachers was growing rapidly.
He explained that in December 2011, there were 14 new
Alaska teachers who had earned their national board
certification. He explained that if a group of teachers
could pursue the certification together.
Mr. Thorpe shared a story about a rural school in New
Mexico. He stated that in 2009, the school had never met
federal standards. He stated that in 2009, a nationally
certified teacher was hired as the principal, and the
school gained 9 percent in math and 5 percent in reading,
which resulted in the school meeting federal standards.
PETE LEWIS, SUPERINTENDENT, FAIRBANKS NORTH STAR BOROUGH
SCHOOL DISTRICT (via teleconference), testified in support
of SB 83.
10:30:22 AM
TAMMY SMITH, FAIRBANKS EDUCATION ASSOCIATION (via
teleconference), spoke in support of SB 83.
JOHN ALCANTRA, GOVERNMENT RELATIONS, NATIONAL EDUCATION
ASSOCIATION, ALASKA, spoke in support of SB 83. He noted
that 400 National Education Association (NEA) delegates
gathered to profess support of SB 83. He explained that the
state of Wyoming has a $4000 annual stipend for National
Board certification for its teachers.
10:36:33 AM
Senator Olson wondered what if national certification
affected drop-out rates. Mr. Alcantra agreed to provide
that information.
Senator Olson wondered what positive impacts would occur
with national certification. Mr. Alcantra replied that
there was evidence of higher benchmark test scores and
students advancing by one year.
Senator Olson wondered how many teachers in private schools
were nationally certified. Mr. Alcantra did not know.
Co-Chair Hoffman noted the two fiscal notes attached to SB
83: one new fiscal impact note from the Department of
Education and Early Development, and one new zero fiscal
note from the Department of Education and Early
Development.
SB 83 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 115
"An Act defining portable electronics insurance and
authorizing the director of insurance to issue a
limited producer license to a person that sells
portable electronics insurance."
10:41:12 AM
AT EASE
10:43:27 AM
RECONVENED
10:43:32 AM
Senator Egan explained SB 115. He referred to the Sponsor
Statement (copy on file):
As cell phones, tablet computers and other portable
electronic devices proliferate and become necessary to
commerce and communication, insurers have begun to
create products to cover the loss or damage of these
valuable and important possessions. Because most
electronic devices are sold through retailers who are
not usually in the insurance business, and because most
portable electronics insurance is sold where the
devices are purchases, without regulation wildly
divergent standards have evolved under which these
policies are sold. There is at present a chaotic market
for such insurance.
Under these circumstances, the possibility exists that
less well capitalized, or less scrupulous, companies
may not survive in the marketplace or otherwise may not
be able to make good on their promises. Similarly,
sales personnel working for vendors of electronic
devices may not understand these products well enough
to explain them to customers, and they may well not
understand the disclosure laws under which sellers of
insurance must operate, leaving consumers vulnerable to
liabilities they do not fully comprehend.
To guard against the excesses of a marketplace
frontier, reputable companies seek regulation that
protects both the customer and the reputation of the
products being marketed. SB 116 seeks to provide both
sellers and buyers the confidence to enter the market
for portable electronics insurance--buyers that the
product will be both appropriate and dependable,
sellers that their products will be trusted and sought
after.
Senator Olson wondered if other states had similar
legislation Senator Egan replied yes.
Co-Chair Stedman noted the one zero fiscal note from
Department of Commerce, Community and Economic Development.
STEPHEN MCDANIEL, ASURION, FLORIDA (via teleconference),
testified in support of SB 115. He explained that the
legislation would protect consumers.
10:46:39 AM
LINDA HALL, DIRECTOR, DIVISION OF INSURANCE, introduced
herself.
Co-Chair Stedman requested the thoughts, concerns, and
perspective of the Division of Insurance. Ms. Hall replied
that the division did not introduce the bill. She explained
that the division had agreed to license the vendor to have
the limited producer license, and the employees would be
able to sell and train. She explained that there were
requirements of the vendor to keep a list of the employees
that were selling the insurance.
10:49:00 AM
Senator McGuire wondered who was excluded from the
marketplace. Ms. Hall felt that the bill would not be a
barrier to entry. She stated that it would streamline the
process for anyone who wanted to sell a product that would
directly impact consumers.
Senator Egan thanked the committee.
SB 115 was HEARD and HELD in committee for further
consideration.
Co-Chair Stedman explained the following day's agenda.
ADJOURNMENT
10:50:42 AM
The meeting was adjourned at 10:50 AM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 119 Athletic Training Educational Overview.pdf |
SFIN 2/1/2012 9:00:00 AM |
SB 119 |
| SB 119 Sponsor Statement.pdf |
SFIN 2/1/2012 9:00:00 AM |
SB 119 |
| SB 119 Ltr of Supt AATA.pdf |
SFIN 2/1/2012 9:00:00 AM |
SB 119 |
| SB 119 Support Letters 24.pdf |
SFIN 2/1/2012 9:00:00 AM |
SB 119 |
| SB 119 Other States Chart Comparison.pdf |
SFIN 2/1/2012 9:00:00 AM |
SB 119 |
| SB 119 US Bureau of Labor Statistics Athletic Trainers.pdf |
SFIN 2/1/2012 9:00:00 AM |
SB 119 |
| SB 38 BuckConsultants Analysis.pdf |
SFIN 2/1/2012 9:00:00 AM |
SB 38 |
| SB 38 Sectional.pdf |
SFIN 2/1/2012 9:00:00 AM |
SB 38 |
| SB 38 Sponsor Statement v.A.pdf |
SFIN 2/1/2012 9:00:00 AM |
SB 38 |
| SB 38 Support Ltr AK Prof Fire Fighters.pdf |
SFIN 2/1/2012 9:00:00 AM |
SB 38 |
| SB 38 Support Ltr APDEA.pdf |
SFIN 2/1/2012 9:00:00 AM |
SB 38 |
| SB 38 Support Ltr PSEA.pdf |
SFIN 2/1/2012 9:00:00 AM |
SB 38 |
| SB 83 sponsor statement Letterhead.docx |
SFIN 2/1/2012 9:00:00 AM |
SB 83 |
| SB 83 support documents.pdf |
SFIN 2/1/2012 9:00:00 AM |
SB 83 |
| SB 83 State_Profile_2011_AK.pdf |
SFIN 2/1/2012 9:00:00 AM |
SB 83 |
| SB 115 lttr supporting, ATT.pdf |
SFIN 2/1/2012 9:00:00 AM |
SB 115 |
| SB 115 Sponsor Statement.pdf |
SFIN 2/1/2012 9:00:00 AM |
SB 115 |
| SB 115 lttr supporting, Liberty Mutual.pdf |
SFIN 2/1/2012 9:00:00 AM |
SB 115 |
| SB 115 Sectional Analysis.pdf |
SFIN 2/1/2012 9:00:00 AM |
SB 115 |
| SB 119 CBPL Memo Final.pdf |
SFIN 2/1/2012 9:00:00 AM |
SB 119 |