Legislature(2015 - 2016)SENATE FINANCE 532
04/15/2015 01:30 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB26 | |
| HB116 | |
| HB178 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 26 | TELECONFERENCED | |
| + | HB 116 | TELECONFERENCED | |
| + | HB 176 | TELECONFERENCED | |
| + | HB 178 | TELECONFERENCED | |
| += | SB 50 | TELECONFERENCED | |
| += | HB 106 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
April 15, 2015
1:56 p.m.
1:56:21 PM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 1:56 p.m.
MEMBERS PRESENT
Senator Anna MacKinnon, Co-Chair
Senator Pete Kelly, Co-Chair
Senator Peter Micciche, Vice-Chair
Senator Click Bishop
Senator Mike Dunleavy
Senator Lyman Hoffman
Senator Donny Olson
MEMBERS ABSENT
None
ALSO PRESENT
Laura Stidolph, Staff, Representative Kurt Olson; Kris
Curtis, Legislative Auditor, Alaska Division of Legislative
Audit; Sara Chambers, Administrative Operations Manager,
Division of Corporations, Business and Professional
Licensing, Department of Commerce, Community and Economic
Development; Cynthia Franklin, Director, Alcoholic Beverage
Control Board, Juneau; Conrad Jackson, Staff,
Representative Kurt Olson; Mike Monagle, Director, Division
of Workers Compensation, Department of Labor and Workforce
Development.
PRESENT VIA TELECONFERENCE
Deborah Schneider, Certified Direct Entry Board of
Midwives, Wasilla
SUMMARY
SB 50 AIDEA: BONDS; PROGRAMS; LOANS; LNG PROJECT
SB 50 was SCHEDULED but not HEARD.
HB 26 EXTEND CERT. DIRECT-ENTRY MIDWIVES BOARD
HB 26 was HEARD and HELD in committee for further
consideration.
HB 106 UNIFORM INTER.CHILD SUPPORT; PARENTAGE
HB 106 was SCHEDULED but not HEARD.
HB 116 EXTEND ALCOHOLIC BEVERAGE CONTROL BOARD
HB 116 was HEARD and HELD in committee for
further consideration.
HB 176 REPEAL ST EMPL WAGE RAISE; LEGIS EMPL BENE
HB 176 was SCHEDULED but not HEARD.
HB 178 WORKERS' COMP MEDICAL FEES; DELAY
HB 178 was HEARD and HELD in committee for
further consideration.
HOUSE BILL NO. 26
"An Act extending the termination date of the Board of
Certified Direct-Entry Midwives; and providing for an
effective date."
1:57:20 PM
LAURA STIDOLPH, STAFF, REPRESENTATIVE KURT OLSON, discussed
HB 26, which would extend the termination date for the
Board of Certified Direct-Entry Midwives to June 30, 2017.
She shared that each year the Division of Legislative Audit
reviewed state boards and commissions to determine whether
they should be reestablished per AS 24.44. The division of
Legislative Audit reviewed the activity of the board in
order to determine whether there was a demonstrated public
need for the board's continued existence and whether it had
been operating in an effective manner. She relayed that it
was the opinion of the division that the board be extended
two years to June 30, 2017. She stated that in the
auditor's opinion the board was serving the public's
interest by effectively licensing certified direct-entry
midwives and apprentices. She furthered that it had been
found that the board continued to improve the profession by
modifying and adopting midwifery regulations to conform to
current standards of care. She spoke to the four findings
and recommendations from the audit, including; having the
department pursue disciplinary cases, increasing licensing
fees to eliminate the boards operating deficit, having the
board communicate certificate requirements to continuing
education providers and approving apprentice applications
in accordance with statutes. She concluded that the Board
of Certified Direct-Entry Midwives served an important role
in protecting the wellbeing of Alaskans by identifying
individuals who were willing to pursue technical training
and meet specified technical qualifications necessary for
licenses as midwives; the continuation of the board was
important to the health and safety of Alaska's women and
children.
2:00:00 PM
Senator Olson asked why the board was only being extended
for two years.
Ms. Stidolph related that a number of issues brought up in
the audit had led to the recommendation of the shortened
extension.
2:00:33 PM
Senator Dunleavy understood that the board was doing a good
job in spite of the issues raised in the audit.
Ms. Stidolph replied that the responsibility for the issues
highlighted by the audit was found to lie with the
Department of Commerce, community and Economic Development.
She assured the committee that the department had taken
action on the issues.
2:01:08 PM
Co-Chair MacKinnon directed the committee's attention to a
report from Legislative Budget and Audit (copy on file).
KRIS CURTIS, LEGISLATIVE AUDITOR, ALASKA DIVISION OF
LEGISLATIVE AUDIT, testified that the division had
performed and audit of the board and recommended a short
extension. She spoke to the four recommendations:
Recommendation No. 1
The Department of Commerce, Community, and Economic
Development's (DCCED) commissioner should take
immediate action to pursue disciplinary sanctions for
certified direct-entry midwives (CDM) cases when
warranted.
Disciplinary sanctions were not actively pursued for
four CDM-related investigations which were completed
during the audit period. The investigations, involving
two people, supported disciplinary sanctions including
probation with continuing education and license
revocation.
However, Division of Corporations, Business and
Professional Licensing (DCBPL) investigative staff did
not actively pursue disciplinary sanctions to protect
the public's safety.
In all four CDM cases, the respondents refused to sign
a CA. Rather than file an accusation and pursue an
administrative hearing, DCBPL staff followed alternate
procedures. Two of the four cases were forwarded to
the Department of Law's Office of Special Prosecutions
and Appeals (OSPA) without a sufficiency of evidence
review by an AAG. A year after the cases were
forwarded to OSPA, no action had been taken. According
to OSPA, the cases represent their lowest priority as
the related offenses were categorized as Class B
misdemeanors. The other two cases were held by DCBPL
investigators with the understanding that the cases
would be forwarded to OSPA once the other cases were
addressed. Due to staff turnover, it is unclear why
DCBPL staff did not pursue a civil licensing action as
required by standard operating procedures. At a
minimum, licensing action should be pursued
concurrently to ensure the public is protected from
incompetent, negligent, or unlicensed practitioners.
By not pursuing licensing action, the respondents were
allowed to continue practicing, and the public's
safety was placed at risk.
2:04:08 PM
Ms. Curtis discussed the three remaining recommendations:
Recommendation No. 2
DCBPL, in consultation with the board, should increase
licensing fees to eliminate the board's operating
deficit.
As of March 31, 2014, the board had an operating
deficit of $115,261.
Recommendation No. 3
The board should communicate certificate requirements
to continuing education providers to facilitate
compliance with centralized licensing regulations.
Recommendation No. 4
The board should approve apprentice permit
applications in accordance with statutes.
For two of two apprentice applications tested, permits
were inappropriately issued by DCBPL's licensing
examiner rather than by the board.
Senator Bishop asked whether the word "apprentice" was a
term of art, and was the occupation of midwife federally
recognized by the United States Department of Labor.
Ms. Curtis deferred the question to the department.
2:04:48 PM
Co-Chair MacKinnon welcomed Co-Chair Kelly to the table.
2:05:14 PM
SARA CHAMBERS, ADMINISTRATIVE OPERATIONS MANAGER, DIVISION
OF CORPORATIONS, BUSINESS AND PROFESSIONAL LICENSING,
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT,
related that she was unsure whether "apprentice" was a
federally recognized term; however, the term was created
through the board statutes and regulations to recognize
someone who had yet to fully meet the technical standards
to become a midwife, but was in training to meet the
standards.
2:05:49 PM
Senator Bishop requested further clarification.
2:06:04 PM
Co-Chair MacKinnon asked for the name of the board
president.
Ms. Chambers related that the board president's name was
Cheryl Corrick; Deborah Schneider was the board's
representative for the hearing.
Co-Chair MacKinnon asked how long Ms. Corrick had been
serving as board president.
Ms. Chambers replied two to three years.
2:06:41 PM
Co-Chair MacKinnon wondered why the board should be
extended given the mismanagement highlighted in the audit.
Ms. Chambers stated that the concerns that were raised in
the audit were being addressed. She shared that the primary
concern, the investigative procedures, had been addressed
by the department. She explained that different management
strategies had been implemented, as well as quality control
elements that served all licensing programs. She deferred
to the board to speak to the topic of public service.
2:08:23 PM
Co-Chair MacKinnon asked whether the recommendations were
reoccurring.
Ms. Curtis stated that the deficit and the fees were
reoccurring issues. She noted that the 2006 audit had
identified that the board's fee was the highest of any
board, over $2000. She said that it had been a continual
struggle, with the small number of licensees, to bear the
cost of investigations and regulatory projects. She said
that the issue of investigative staff was isolated to one
instance, the department routinely went into the division
and scrutinized their investigative function; a systematic
problem had not been identified, the problem seemed
specific to this particular board.
2:09:23 PM
Co-Chair MacKinnon asked if the deficit the board faced was
due to investigations.
Ms. Curtis replied that the audit had determined that the
deficit was based on investigative and regulatory costs.
She furthered that the board had recently undergone a
regulatory project and thought that some of the incurred
costs were due to the project.
Ms. Chambers reiterated that it was difficult for a
licensing group of less than 50 licensees to sustain the
statutory requirement for all of their expenses to be
covered by revenues. She furthered that the board currently
had the highest licensing fee of any other program, which
would continue to be raised on a regular basis in order to
overcome the deficit. She expressed concern that the
organization was "top heavy" due to the nature of the work
and fees.
2:11:26 PM
Senator Hoffman asked if there were any midwives in Western
Alaska.
Ms. Chambers responded that she would follow up with the
information at a later date.
2:11:44 PM
Senator Dunleavy asked what would occur if the legislation
did not pass.
Ms. Curtis responded that the licensing function of the
board would revert back to the department.
Ms. Chambers reiterated that there was a one year period in
which the board transition responsibilities over to the
department. She shared that the department had 43 licensing
programs, only 21 with boards.
2:13:10 PM
Co-Chair MacKinnon pointed out that over the last two years
work had been done to understand why certain licensee
groups in the state had deficit balances.
2:14:16 PM
Co-Chair MacKinnon asked whether the board was acting on
first recommendation of the audit.
DEBORAH SCHNEIDER, CERTIFIED DIRECT ENTRY BOARD OF
MIDWIVES, WASILLA (via teleconference), replied yes. She
said that the recommendations in the audit had been
addressed by the board. [The quality of the audio is
failing. This testimony is nearly impossible to decipher.]
2:18:03 PM
AT EASE
2:19:45 PM
RECONVENED
Co-Chair MacKinnon repeated her question.
Ms. Schneider stated that the board had worked with
investigators to address the issues in the audit. She
stressed that the board was working within its legal
authority in the investigation issue.
Co-Chair MacKinnon reminded Ms. Schneider that the legal
authority of the board was outlined in state statute.
Co-Chair MacKinnon asked how the board was communicating to
its providers the certificate requirements for continuing
education.
Ms. Schneider specified that a letter detailing the state
requirements had been drafted and sent to the Midwife
Association of Alaska. She said that license renewal
certificates were being reviewed to assure that state
requirements were being met, and that agencies that were
providing continuing education were notified of those
specific requirements.
2:22:29 PM
Co-Chair MacKinnon asked whether the board understood that
they were responsible for approving apprenticeship permit
applications in accordance with state statutes.
Ms. Schneider explained that the board was aware and had
directed that the apprentice permits come before the board
for approval.
2:23:11 PM
Co-Chair MacKinnon wondered why the board' authorization in
state statute should be extended.
Ms. Schneider explained that the board worked to ensure
that midwives practiced under the most current regulations.
She stated that midwifery was a growing practice and that
well written regulations and experienced oversight were
important. She shared that Alaska was one of the first
states to have licensure of direct-entry midwives, which
had been a blueprint for many other states when developing
their own guidelines.
2:24:55 PM
Senator Bishop asked how many midwives and apprentices were
currently licensed in the state.
Ms. Schneider replied that there were 34 licensed midwives.
She said she was unsure on the number of apprentices.
2:25:38 PM
Co-Chair MacKinnon OPENED public testimony.
2:26:07 PM
Co-Chair MacKinnon CLOSED public testimony.
2:26:13 PM
Senator Olson assumed that the licensing fee was paid
biannually.
Ms. Chambers replied yes.
Senator Olson asked if investigators were shared among
other boards and departments.
Ms. Chambers said that the department adhered to a positive
time keeping practice to assure that investigators were
being used that had the highest skillset in the healthcare
community, while spreading resources across the various
competing, and ever-changing, needs of the division. She
stated that the investigator was not a full-time position
for the board.
Senator Olson expressed concern that the public welfare
could be harmed due to malpractice.
2:28:33 PM
HB 26 was HEARD and HELD in committee for further
consideration.
HOUSE BILL NO. 116
"An Act extending the termination date of the
Alcoholic Beverage Control Board; and providing for an
effective date."
2:29:15 PM
LAURA STIDOLPH, STAFF, REPRESENTATIVE KURT OLSON, testified
that HB 116 would extend the termination date of the
Alcoholic Beverage Control Board to June 30, 2018. She
shared that each year the Division of Legislative Audit
reviewed state boards and commissions to determine whether
they should be reestablished per AS 24.44. The division of
Legislative Audit reviewed the activity of the board and
determined that there was a demonstrated public need for
the board's continued existence and that it had been
operating in an effective manner. She furthered that the
board had addressed all issues found in prior audits, with
two being resolved and one being partially resolved. She
noted the five findings and recommendations from the most
recent legislative audit (copy on file):
Recommendation No. 1
The board's director should ensure that all board
meetings are properly published on the State's Online
Public Notice System.
Prior Finding
From FY 07 through FY 09, 11 of 16 board meetings were
not adequately publicly noticed per statute or board
policy requirements. Four meetings were not advertised
on the State's Online Public Notice System; the venues
for seven board meetings were not advertised in the
local newspaper; and seven meetings were not
advertised timely.
Current Status
From FY 09 through February 2014, three of 25 board
meetings were not published on the State's Online
Public Notice System. Although the board has
procedures for public noticing, Department of
Commerce, Community, and Economic Development staff
did not adhere to procedures due to general oversight.
Alaska Statute 44.62.310(e) requires reasonable public
notice be given for meetings. Failure to publicly
notice board meetings may limit public input in the
regulatory process. Lack of public input may reduce
the board's effectiveness in addressing public
concerns.
We recommend the board's director ensure all board
meetings are properly published on the State's Online
Public Notice System.
Recommendation No. 2
The board should notify local governing bodies of
applications for new and transfer licenses within 10
days of receipt.
Prior Finding
The board did not consistently adhere to the statutory
requirement of notifying the local governing body
within 10 days of receiving an application as required
by AS 04.11.520. This requirement allows time for
local governments to review and possibly protest a
license being issued, renewed, relocated, or
transferred.
Local governing bodies were not consistently notified
because board members and the director did not provide
appropriate guidance and oversight to staff to ensure
compliance with state laws, and with its decisions.
Current Status
For two of 10 new or transfer licenses tested, the
board did not inform the local governing body within
10 days of receiving the application. Both
notifications were sent between 11 and 20 days after
the board received the application. The errors
resulted from prior board staff not adhering to the
board's policies and procedures which require local
governing bodies be notified in a timely manner.
Alaska Statutes specify a timeline for the board to
review applications, notify local governing bodies,
and receive protests. Alaska Statute 04.11.510
requires the board to review applications within 90
days of receipt. Alaska Statute 04.11.520 requires the
board to notify local governing bodies within 10 days
of receiving an application. A local governing body
may protest within 60 days as provided by AS
04.11.480. Delays in notifying local governing bodies
may result in inappropriately limiting the time the
local governing body and/or the board has to review
applications.
We recommend the board notify local governing bodies
of applications for new and transfer licenses within
10 days of receipt.
Recommendation No. 3
The board should issue catering permits in accordance
with statutory requirements.
Catering permits may be issued to beverage dispensary
licensees (BDL) to sell alcoholic beverages at
conventions, picnics, social gatherings, sporting
events, or similar affairs. The permits expire after
seven days and can only be used for events hosted off
licensed premises.
Alaska Statutes 04.11.230(a) states:
A caterer's permit authorizes the holder of a
beverage dispensary license to sell or dispense
alcoholic beverages at conventions, picnics,
social gatherings, sporting events, or similar
affairs held off the holder's licensed premises.
The permit may only be issued for designated
premises for a specific occasion and for a
limited period of time.
A review of four licensees that received more than six
consecutive catering permits during the audit period
yielded three instances of noncompliance. Two were
related to catering permits issued to serve alcohol in
another room of the same premises. The permits were
issued for six to 14 consecutive weeks while the board
processed the licensee's application for a duplicate
BDL. A duplicate BDL allows a licensee to serve
alcohol in another room of an establishment.
The third noncompliant permit resulted from the board
issuing a catering permit to one licensee to serve
alcohol for another business with an expired BDL. In
this case, the permits were issued for eight
consecutive weeks while the board processed the
licensee's renewal application.
Each of the three variances represent a statutory
violation because the permits were issued with the
intention to serve alcohol on a licensed premises and
to maintain daily operation of a business rather than
for a short term social gathering or similar event.
Circumventing licensing laws weakens the board's role
as regulator and may result in inequitable treatment
of applicants. Inquiries with board members revealed
that the board considered the issuance of the noted
catering permits a convenience to both licensees and
the public. At the time, the board believed that
issuing the license or permit was appropriate to
ensure the businesses could continue to operate.
We recommend that the board issue catering permits in
accordance with statutory requirements.
Recommendation No. 4
The board should issue recreational site licenses in
accordance with statutory requirements.
Recreational site licenses may be issued to businesses
that host non-school-related recreational events held
during a season.
Of the 32 recreational licensee's active during the
audit period, the audit found 15 businesses
(47 percent) did not meet the criteria for a
recreational license. Ineligible businesses include
bowling alleys, a sports center and pub, an exercise
gym, a gift shop, theatres, and pool halls. These
business types did not meet the definition of a
recreational site nor were operations limited to a
season. The issuance of these licenses expanded the
number of establishments licensed to sell alcohol over
the number allowed by statute.
According to AS 04.11.210(a), the holder of a
recreational site license may sell beer and wine at a
recreational event during and one hour before and
after recreational events. AS 04.11.210(c) defines
recreational events as baseball games, car races,
hockey games, or curling matches regularly held during
a season.
Inquiries with board members revealed that the
improper issuance of recreational site licenses was
caused by an historic misunderstanding of what
qualifies as a recreational event.
We recommend that the board issue recreational site
licenses in accordance with statutory requirements.
Recommendation No. 5
The board should implement a process to monitor and
track all complaints to ensure they are resolved in a
timely manner.
The board has not established a process to monitor and
track all complaints to ensure they are resolved in a
timely manner. The board does have a process to
receive complaints from licensees or law enforcement
agencies through their website, telephone, or emails.
However, complaints are only tracked if they result in
an inspection or investigation. If the complaint is
deemed invalid, it is not documented. Furthermore, the
basis for a decision not to investigate is not
documented and maintained.
The efficiency with which complaints are investigated
is one of the sunset evaluation criteria used in the
legislative oversight process. Alaska Statute
44.66.050(c)(6) specifies the sunset review must
evaluate:
The efficiency with which public inquiries or
complaints regarding the activities of the board,
commission, or agency filed with it, with the
department to which a board or commission is
administratively assigned, or with the office of
victims' rights or the office of the ombudsman
have been processed and resolved.
By not tracking complaints, there is an increased risk
that board staff may not investigate complaints
received and/or not investigate complaints in a timely
manner. Such instances could reduce the board's
ability to effectively enforce alcoholic beverage
laws. Additionally, complaints received directly by
board staff via telephone or email may never be
resolved in the event of staff turnover. Because there
was no statutory mandate, the board director did not
consider tracking all complaints as necessary.
We recommend that the board establish a process to
monitor and track all complaints to ensure that they
are resolved in a timely manner.
She relayed that it was the opinion of the Division of
Legislative Audit that the board be extended three years to
June 30, 2018. She said that had the marijuana initiative
not passed, the board would have been extended for five
years. She noted that the regulation of the marijuana
control board established in HB 123, would fall under the
ABC board, which was why the fiscal note reflected the
expenditures for the regulation of marijuana. She added
that the money had not been appropriated and would be
removed if HB 123 passed. She concluded that the ABC board
served an important role in guarding the health and safety
of Alaskans by protecting the general public through the
issuance, renewal, revocation, and suspension of alcoholic
beverage licenses.
2:32:13 PM
Ms. Curtis spoke to the recommendations outlined in the
legislative audit. She noted that the first recommendation
was a repeat recommendation from the prior sunset. She said
that in 2014, 3 of 25 board meetings had not been noticed
during the audit period. She touched on the second
recommendation, stating that the division had tested 10
licenses, 2 of which were not communicated to the local
governing bodies within the 10 day time frame. She stated
that under the third recommendation the division had
reviewed 4 licensees, with 6 consecutive catering permits
issues during the period; 3 of the 4 were discovered to be
statutory violations because the permits were issued with
the intention to serve alcohol on a licensed premises that
would maintain daily operations of a business, rather than
for a short-term social gathering or similar event. She
said that the board issues the permits to ensure that those
businesses could continue to operate. She continued that
that of the 32 licensees that were active during the audit
period, 15 did not meet the criteria for a recreational
license. She detailed that ineligible business included:
bowling alleys, a sports center and pub, and exercise gym,
gift shops, theatres, and pool halls. She said that the
businesses did not meet the definition of a recreational
site, nor were operations limited to a season. She relayed
that the issuance of the licenses expanded the number of
establishments licensed to sell alcohol over the number
allowed for in statute. She furthered that inquiries with
board members had revealed that the improper issuance of
the recreational site licenses was caused by a historic
misunderstanding of what constituted a recreational event.
She shared that under the final recommendation the division
had found that the board had a process to receive
complaints; however, if complaints were not investigated or
inspected, they were not documented. She concluded that the
board and the department had concurred with all of the
recommendations.
2:35:39 PM
CYNTHIA FRANKLIN, DIRECTOR, ALCOHOLIC BEVERAGE CONTROL
BOARD, JUNEAU, testified that she had supervised the final
responses to the audit and had provided details to the
auditors regarding the fixes to the issues identified in
the audit. She discussed the first audit finding. She
explained that the director now reviewed all of the public
notices that were issued by the administrative personnel.
She spoke to the second recommendation. She said that in
many cases same day public notification of applications was
occurring, which was well within the 10 day notice
requirement. She continued to the third recommendation. She
shared that the catering permit had been an issue with both
the board and the agency. She assured the committee that
the board had instituted the practice if strictly adhering
to the statute regarding when catering permits were issued.
She moved to the fourth recommendation and shared that the
board had demonstrated understanding of the parameters of
the recreational site licenses. She spoke to the fifth
recommendation. She said that complaints for investigators
were charted on a spreadsheet, the agency was paper based
and the information was placed in a paper file. She
concluded that the agency had undergone several changes
over the past 4 years that had enhanced its performance:
the audit, the move from the Department of Public Safety to
the Department of Commerce, Community and Economic
Development, and the stakeholder review of statutes. She
felt that the board was taking strong and strict action
regarding violations of statute and regulation.
2:42:59 PM
Senator Bishop wondered how quickly complaints would be
resolved by the board.
Ms. Franklin relayed that her agency had a 24 hour rule;
complaints were directed to the Enforcement Supervisor upon
receipt and were investigated within 24 hours.
Senator Bishop asked how long an initiated investigation
would take to close out.
Ms. Franklin replied that it would depend on the activity.
She said that she generally checked in with investigators
after 3 days, but most were same day resolution.
2:45:07 PM
Co-Chair MacKinnon felt that the departmental move of the
board had led to more errors but less complaints.
Ms. Franklin said that the board was working on a community
policing approach to their licensees; 5 enforcement
officers were working on the issue. She believed that an
argument could be made for the appropriateness of either
department to house the board; however, being in DOC had
made the board itself more attuned to its public safety
obligations, and less reactive to the enforcement duties of
the board.
2:48:00 PM
Co-Chair MacKinnon OPENED public testimony.
2:48:34 PM
Co-Chair MacKinnon CLOSED public testimony.
HB 116 was HEARD and HELD in committee for further
consideration.
HOUSE BILL NO. 178
"An Act relating to workers' compensation fees for
medical treatment and services; providing for an
effective date by amending the effective date of sec.
5, ch. 63, SLA 2014; and providing for an effective
date."
2:49:28 PM
CONRAD JACKSON, STAFF, REPRESENTATIVE KURT OLSON, offered a
sponsor statement of the legislation:
For many years Alaska has faced the highest workers'
compensation rates in the nation. During the second
session of the 28th Legislature, House Bill 316 was
passed. The bill was a more sweeping solution to the
challenge of the previous medical services fee
schedule than we have experienced in many years.
HB 316 tasked the Medical Services Review Committee
(MSRC) with setting a conversion factor and a
geographic differential to be used in conjunction with
a basic fee schedule based on a relative value unit
methodology. Once set, the conversion factor will be
approved by the Commissioner of the Department of
Labor prior to adoption by regulation by the Workers'
Compensation Board. All this was to be accomplished by
July 1, 2015.
Since passage of HB 316, the MSRC has been reactivated
and met numerous times. They have nearly completed
their part in establishing the conversion factors.
More work remains to be done to ensure the reform can
take effect.
House Bill 178 grants a 5 month extension to complete
this important step in lowering workers' comp costs in
both the public and private sector. Without this
extension, time may run out before the comprehensive
reforms instituted last year can be implemented.
Mr. Jackson noted the zero fiscal note and stated that once
the new fee schedules were in place there would be a
realized reduction in worker's compensation rates.
2:52:15 PM
AT EASE
2:52:44 PM
RECONVENED
Senator Dunleavy asked what impact the five-month extension
would have on the fee rate changes.
Mr. Jackson responded that there was no impact expected on
the fee schedule.
2:53:28 PM
Co-Chair MacKinnon OPENED public testimony.
2:54:09 PM
MIKE MONAGLE, DIRECTOR, DIVISION OF WORKERS COMPENSATION,
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT, stated that
the committee was formed in 2005, but had remained dormant
since 2009. He said that when HB 316 passed the committee
experience a rebirth, new committee members were appointed
and medical data was gathered through the state's
procurement process. He shared that an upcoming meeting
would establish the adoption of a final conversion factor,
at which time the committee would submit its
recommendations to the commissioner. He relayed that the
commissioner would review the recommendations and take
public comment, and then all of the information would be
forwarded to the board. He explained that the board would
then propose regulations and return after public comment
for final adoption. He asserted that the extension would
allow the commissioner, and the board, to complete the
regulatory work by the end of summer 2015.
2:56:28 PM
Co-Chair MacKinnon CLOSED public testimony.
HB 178 was HEARD and HELD in committee for further
consideration.
Co-Chair MacKinnon discussed housekeeping.
ADJOURNMENT
2:57:22 PM
The meeting was adjourned at 2:57 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB26 Sponsor Statement.pdf |
SFIN 4/15/2015 1:30:00 PM |
HB 26 |
| HB26 Supporting Documents-Legislative Audit 6-30-2014.pdf |
SFIN 4/15/2015 1:30:00 PM |
HB 26 |
| HB116 Sponsor Statement.pdf |
SFIN 4/15/2015 1:30:00 PM |
HB 116 |
| HB116 Supporting Document - Legislative Audit 05-30-14.pdf |
SFIN 4/15/2015 1:30:00 PM |
HB 116 |
| HB 176 Legal Opinion re Geo Diff.pdf |
SFIN 4/15/2015 1:30:00 PM |
HB 176 |
| HB 176 Sponsor Statement (2).pdf |
SFIN 4/15/2015 1:30:00 PM |
HB 176 |
| HB178 Sponsor Statement.pdf |
SFIN 4/15/2015 1:30:00 PM |
HB 178 |
| HB178 Supporting Documents-CSHB316(FIN) Sectional Analysis ver R.pdf |
SFIN 4/15/2015 1:30:00 PM |
HB 178 HB 316 |
| HB178 Supporting Documents-HB316 enacted in 2014.PDF |
SFIN 4/15/2015 1:30:00 PM |
HB 178 HB 316 |