Legislature(2017 - 2018)SENATE FINANCE 532
04/14/2017 01:30 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB104 | |
| HB49 | |
| HB141 | |
| SB104 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 49 | TELECONFERENCED | |
| + | HB 141 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 104 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
April 14, 2017
1:39 p.m.
1:39:24 PM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 1:39 p.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Anna MacKinnon, Co-Chair
Senator Click Bishop, Vice-Chair
Senator Shelley Hughes
Senator Peter Micciche
Senator Donny Olson
Senator Natasha von Imhof
MEMBERS ABSENT
None
ALSO PRESENT
Brittany Hutchison, Staff, Senator MacKinnon; Michael
Johnson, Commissioner, Department of Education and Early
Development; Heidi Teshner, Director, Administrative
Services, Department of Education and Early Development;
Paul Prussing, Director, Division of Student Learning,
Department of Education; Representative Sam Kito, Sponsor;
Kris Curtis, Legislative Auditor, Alaska Division of
Legislative Audit; Sara Chambers, Deputy Director, Division
of Corporations, Business, and Professional Licensing,
Department of Commerce, Community and Economic Development;
Johanna Crossett, Midwife, Juneau; Madi Nolan-Grimes,
Midwife, Juneau; Representative Zach Fansler, Sponsor; Mary
Schlosser, Staff, Representative Zach Fansler; Greg Cashen,
Deputy Commissioner, Department of Labor and Workforce
Development; Paloma Harbour, Director, Division of
Administrative Services, Department of Labor and Workforce
Development; Juli Lucky, Staff, Senator Anna MacKinnon.
PRESENT VIA TELECONFERENCE
Deborah Schnider, Board of Midwives, Anchorage; Suzanne
Trewilliger, President, Midwives Association of Alaska,
Eagle River; Doug Walrath, Director, Northwestern Alaska
Technical Center, Nome; Dennis Dishion, Executive Director,
Yuut Elitnaurviat, Bethel; Annette Caruso, Executive
Director, Southwest Alaska Vocational and Education Center,
King Salmon; Pearl Brower, Ilisagvik College, Barrow; Fred
Villa, Associate Vice President, Workforce Programs,
University of Alaska, Fairbanks; Cheryl Edenshaw, Director,
Alaska Technical Center, Kotzebue; Joey Crum, Self,
Anchorage; Cathy LeCompte, Director, Alaska Vocational and
Technical Center, Seward; Paul Prussing, Director, Division
of Student Learning, Department of Education and Early
Development.
SUMMARY
SB 104 EDUCATION CURRICULUM
CSSB 104(FIN) was REPORTED out of committee with
a "do pass" recommendation and with one new
fiscal note from the Department of Education and
Early Development.
[Note: Action to report CSSB 104(FIN) from
committee was later rescinded on February 22,
2018 for further consideration by the Senate
Finance Committee.]
CSHB 49(FIN)
EXTEND BOARD OF DIRECT-ENTRY MIDWIVES
SCS CSHB 49(L&C) was REPORTED out of committee
with a "do pass" recommendation and with one
previously published fiscal impact note: FIN
1(CED).
HB 141 AK WORKFORCE INVESTMENT BOARD;FUNDS
HB 141 was HEARD and HELD in committee for
further consideration.
SENATE BILL NO. 104
"An Act relating to the duties of the state Board of
Education and Early Development; and relating to
school curriculum."
1:40:41 PM
Vice-Chair Bishop MOVED Conceptual Amendment 1 (copy on
file):
Page 1, line 6, following "review"
Delete "test"
Page 1, line 9, following "curricula"
Insert the word "currently".
Page 2, Lines 3-5, following "state"
Delete "The department shall implement a program to
test the curricula during the two immediately
succeeding school years in the five largest school
districts based on the district ADM for the 2015-2016
school year."
Page 2, lines 6-7, following "if"
Delete "after testing under (c) of this section."
Page 2, following line
Insert a new section to read
"* Sec. 2. The uncodified law of the State of Alaska
is amended by adding a new section to read:
"REPORT ON CURRICULUM. The Department of Education and
Early Development 20 shall submit to the legislature
an electronic report, and make the report publically
available on the department's website. The report will
provide information on the curriculum that each school
district has adopted. On or before July 1, 2018, and
each year thereafter, the department shall submit the
report required under this section to the senate
secretary and the chief clerk of the house of
representatives and notify the legislature that the
report is available."
Co-Chair MacKinnon OBJECTED for discussion.
1:41:03 PM
BRITTANY HUTCHISON, STAFF, SENATOR MACKINNON, explained the
amendment.
Vice-Chair Bishop queried the deletion of the word "test."
MICHAEL JOHNSON, COMMISSIONER, DEPARTMENT OF EDUCATION AND
EARLY DEVELOPMENT, responded that the testing of students
and curriculum were two different things. He stated that
the vetting of curriculum would still occur within the
districts without the use of the word "test."
Co-Chair MacKinnon WITHDREW her OBJECTION.
Co-Chair MacKinnon queried comments.
Commissioner Johnson thanked the committee for the
legislation. He stressed that effective curriculum was one
of the fundamental components of teaching students. He
remarked that assisting districts by providing flexibility
in the curriculum review process was helpful during the
time of necessary efficiencies, and was helpful for
families to have more information about curriculum
materials adopted by the local school boards.
Co-Chair MacKinnon stated that there would be a forthcoming
fiscal note.
1:48:05 PM
Senator von Imhof noted that the bill stated that the
Department of Education and Early Development (DEED) would
be required to review curricula used in other states and
countries, and by 2019 identify the best practices for
teaching math and language arts at each grade level. She
queried the challenges that may occur in the process
outlined in the fiscal note. Commissioner Johnson replied
that the fiscal note reflected the need for additional
staff to accomplish the intent of the bill.
Senator von Imhof noted the line item, "Program
Administration and Operations" with 83 individuals for FY
18. She queried the details of that line item.
1:50:08 PM
HEIDI TESHNER, DIRECTOR, ADMINISTRATIVE SERVICES,
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT, stated that
the line item was the Alaska Commission on Postsecondary
Education, which was a corporation to handle loans and
grants within DEED.
Senator von Imhof surmised that cutting budgets for
curriculum was wrong.
1:51:38 PM
PAUL PRUSSING, DIRECTOR, DIVISION OF STUDENT LEARNING,
DEPARTMENT OF EDUCATION, stated that the intent was to
assist districts in aligning to the new curriculum
standards.
Co-Chair MacKinnon requested a new fiscal note. Mr.
Prussing replied he would provide the fiscal note in the
afternoon.
Vice-Chair Bishop hoped that DEED would work with the
University to align curriculum standards.
Senator Hughes remarked that there was confusion about DEED
making the curriculum available to all school districts and
the costs related to materials. She wondered whether the
state was purchasing all the materials for the schools.
Co-Chair MacKinnon replied in the negative.
Ms. Hutchison announced that the state would not purchase
the curriculum.
Senator Hughes felt that DEED may have had incorrect
information in a previous committee.
Ms. Hutchison stated that DEED had been helpful, and
communication had enhanced throughout the committee
process.
SB 104 was HEARD and HELD in committee for further
consideration.
1:56:11 PM
AT EASE
1:58:16 PM
RECONVENED
CS FOR HOUSE BILL NO. 49(FIN)
"An Act extending the termination date of the Board of
Certified Direct-Entry Midwives; and providing for an
effective date."
1:58:49 PM
REPRESENTATIVE SAM KITO, SPONSOR, introduced the
legislation. He stated that the bill provided an extension
of Board of Certified Direct-Entry Midwives through 2021,
which was the recommended extension from Legislative Audit.
1:59:53 PM
KRIS CURTIS, LEGISLATIVE AUDITOR, ALASKA DIVISION OF
LEGISLATIVE AUDIT, shared that there was an audit available
dated 2016 (copy on file). The last sunset audit of the
board was conducted in 2014. At that time the Division of
Corporation, Business, and Professional Licensing (DCBPL)
investigative staff had not actively processed
investigations that posed a public safety risk. After that
audit was released, the board was only extended two years.
The most recent audit found that the board was effectively
licensing and regulating certified direct entry midwives
and midwife apprentices, and she recommended a four-year
extension. He stated that there were four recommendations
located in the audit document.
2:04:28 PM
Senator Olson queried the reasons for the deficits. Ms.
Curtis replied that the board had struggled with
investigative fees.
Senator Olson wondered whether there were lawsuits related
to malpractice of midwives. Ms. Curtis replied that there
were four cases involving two individuals that were not
moving forward and resulted in additional costs. She
stressed that the audit did not typically go into detail on
investigative cases.
Senator Olson wondered whether did not pursue a license
because of the high fee. Ms. Curtis deferred to the
department.
Senator Olson asked whether there were any mergers of the
boards for economic reasons in the state or other states.
Ms. Curtis replied that there were no recent board mergers.
Senator Hughes wondered whether the investigations were of
licensed individuals or fraudulent midwives. Ms. Curtis
that, historically, there was a mixture of both.
2:07:48 PM
SARA CHAMBERS, DEPUTY DIRECTOR, DIVISION OF CORPORATIONS,
BUSINESS, AND PROFESSIONAL LICENSING, DEPARTMENT OF
COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, shared that
the department concurred with the first two findings in the
audit regarding administrative errors and fees. She stated
that there was a fee increase to $3800 for fully authorized
midwives, and under $2000 for apprentices. She stated that
there were no documented departures from the industry
because of the fees, but it was a fairly new fee. She
stated that the board only have approximately 50 licensees,
so there was an economy of scale issue with unlicensed
practice and some standard of care investigations.
Co-Chair MacKinnon shared that Senator Olson had valuable
medical expertise.
Senator Olson wondered whether the licensees included the
apprentices. Ms. Chambers responded in the affirmative. She
stated that the latest numbers for the fee analysis
indicated that there were 43 fully licensed midwives and
approximately 20 apprentices.
Senator Olson wondered whether the investigations were for
midwives or apprentices. Ms. Chambers agreed to provide
that information, but midwives had fiduciary responsibility
over apprentices.
Senator Hughes queried the licensure fees for physicians,
nurses, and nurse practitioners. Ms. Chambers replied that
the physician fee was $300, physician assistant's fee was
$200, nurse's fee was approximately $200.
Senator Hughes noted that midwives paid a significantly
larger license fee, and thanked them for their dedication.
2:13:54 PM
Co-Chair MacKinnon wondered whether the department could
advance the concern that was listed from the officer to
either the presiding officers, Labor and Commerce, or the
appropriate chairman. She remarked that there was a
liability for choosing to use a midwife.
Co-Chair Hoffman remarked that the bill only dealt with the
extension. He felt that addressing the third recommendation
in the audit may require work from the Senate Health and
Social Services Committee.
Co-Chair MacKinnon agreed.
Senator Micciche wondered how long it took to build an
operation deficit of $183,083. Ms. Chambers replied that
the board has had a deficit since 2012 of $65,000 and had
grown annually until the most recent renewal cycle. The
deficit began to reduce because of the increased fees. She
remarked that the fees were dropped in 2009, but did not
know the rationale for lowering the fee at that time.
Senator Micciche wondered whether the four-year sunset
renewal was too long, because the board should continue to
be investigated.
Senator Olson supported keeping independent midwives. He
queried the estimated forecast. Ms. Chambers replied that
there was a fee analysis to address the issues with setting
fees. She stated that, assuming that the fees remain the
same, the board's deficit would be eliminated by FY 21.
2:22:31 PM
DEBORAH SCHNIDER, BOARD OF MIDWIVES, ANCHORAGE (via
teleconference), testified in support of the bill.
2:24:21 PM
JOHANNA CROSSETT, MIDWIFE, JUNEAU, spoke in support of the
bill.
Senator Micciche queried whether there was support of the
licensees covering the deficit. Ms. Crossett replied in the
affirmative.
Vice-Chair Bishop wondered whether the midwives might not
want to pay the fee, and stop licensing. Ms. Crossett
replied that the initial proposed licensing fee was $4700.
The reduction to $3800 was a good compromise. She hoped
that there would not be another fee increase.
2:26:25 PM
MADI NOLAN-GRIMES, MIDWIFE, JUNEAU, spoke in support of the
bill.
2:27:21 PM
SUZANNE TREWILLIGER, PRESIDENT, MIDWIVES ASSOCIATION OF
ALASKA, EAGLE RIVER (via teleconference), testified in
support of the bill.
Senator Micciche wondered whether the number of midwives
was changing. Ms. Trewilliger replied that that there was a
reduction of thirteen midwives, and did not know the number
of apprentices.
Co-Chair MacKinnon CLOSED public testimony.
2:31:03 PM
Vice-Chair Bishop addressed the fiscal note: FN 1(CED).
2:32:01 PM
AT EASE
2:32:48 PM
RECONVENED
Vice-Chair Bishop MOVED to REPORT SCS CSHB 49(L&C) out of
committee with individual recommendations and attached
fiscal note.
SCS CSHB 49(L&C) was REPORTED out of committee with a "do
pass" recommendation and with one previously published
fiscal impact note: FIN 1(CED).
2:33:51 PM
AT EASE
2:40:39 PM
RECONVENED
HOUSE BILL NO. 141
"An Act relating to allocations of funding for the
Alaska Workforce Investment Board; and providing for
an effective date."
2:41:29 PM
REPRESENTATIVE ZACH FANSLER, SPONSOR, introduced himself.
MARY SCHLOSSER, STAFF, REPRESENTATIVE ZACH FANSLER,
introduced herself.
Representative Fansler introduced the legislation. The bill
was the renewal of funding allocations for ten programs
through the Technical and Vocational Education Program
(TVEP). The purpose of the funding was to put Alaskans back
to work and into the job market. The program was regionally
aimed at ten different institutions across the state. The
institutions concentrated on the skills that were needed
for the jobs in the region. He went through the ten
programs and the allocations in the bill.
2:45:21 PM
Senator von Imhof wondered whether TVEP analyzed the number
of people obtained jobs after training, and whether those
jobs were retained a year later. Representative Fansler
replied in the affirmative.
Senator Olson queried the reason for the change to the one-
year extension. Representative Fansler replied that he
assumed that there was a concern about changing the
reporting requirements to ensure that the programs were
adequately serving and accomplishing their tasks. He
stressed that there was a hope to provide stable funding
for the programs. He remarked that the programs depended on
the funding.
2:50:23 PM
Senator Olson stressed that the concern was about
addressing the same issue in a year.
Co-Chair MacKinnon queried information about the change to
a one-year extension.
Senator Hughes felt there was a varied cost per student.
She felt that there would be consideration with
recommendations of how to be sure that the dollars were
well spent. The hope was that the funds would be used to
assist students in preparation for needed jobs. She noted
that there was funding for office training, but there may
be redundancies in the programs.
2:55:01 PM
Senator Micciche wondered whether there reporting
requirements could be improved while the training was
occurring as normal. Representative Fansler replied in the
affirmative.
Senator Micciche felt hoped that there may be a compromise
on the length of effectiveness of the bill.
Co-Chair MacKinnon announced that amendments were due the
following day at noon.
2:58:09 PM
DOUG WALRATH, DIRECTOR, NORTHWESTERN ALASKA TECHNICAL
CENTER, NOME (via teleconference), spoke in support of the
bill.
3:00:25 PM
DENNIS DISHION, EXECUTIVE DIRECTOR, YUUT ELITNAURVIAT,
BETHEL (via teleconference), he felt that a one-year sunset
would be detrimental to the rural training centers.
3:02:23 PM
ANNETTE CARUSO, EXECUTIVE DIRECTOR, SOUTHWEST ALASKA
VOCATIONAL AND EDUCATION CENTER, KING SALMON (via
teleconference), spoke in support of the bill, with a five-
year reauthorization.
3:04:32 PM
PEARL BROWER, ILISAGVIK COLLEGE, BARROW (via
teleconference), supported the five-year extension in the
bill.
3:05:24 PM
FRED VILLA, ASSOCIATE VICE PRESIDENT, WORKFORCE PROGRAMS,
UNIVERSITY OF ALASKA, FAIRBANKS (via teleconference), spoke
in support of the bill.
3:07:23 PM
CHERYL EDENSHAW, DIRECTOR, ALASKA TECHNICAL CENTER,
KOTZEBUE (via teleconference), spoke in support of the
five-year extension in the bill.
3:08:45 PM
JOEY CRUM, SELF, ANCHORAGE (via teleconference), supported
the current version of the bill, in order to determine the
effectiveness of the programs.
3:11:23 PM
CATHY LECOMPTE, DIRECTOR, ALASKA VOCATIONAL AND TECHNICAL
CENTER, SEWARD (via teleconference), spoke in support of
the bill.
Co-Chair MacKinnon CLOSED public testimony.
3:13:07 PM
GREG CASHEN, DEPUTY COMMISSIONER, DEPARTMENT OF LABOR AND
WORKFORCE DEVELOPMENT, introduced himself.
PALOMA HARBOUR, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT,
introduced herself.
Co-Chair MacKinnon queried comments regarding the reduction
from five years to one year. Mr. Cashen replied that an
extension of more than one year would allow for stability,
and allow for examination of the performance measures.
Co-Chair MacKinnon noted that there was approximately $12.5
million distributed between the programs. Ms. Harbour
agreed. She stated that there was an average cost of $1215
per student, which was an affordable training program.
Co-Chair MacKinnon queried the percentage of unemployment
contributions overall. Ms. Harbour replied that she needed
a moment to collect that information.
3:15:05 PM
AT EASE
3:15:47 PM
RECONVENED
3:15:53 PM
Co-Chair MacKinnon restated her question. Ms. Harbour
replied that the contribution that the employee made into
TVEP was 0.16 percent of their taxable wage base, which was
a maximum of $63.84 in 2017 per employee. She stated that
the overall collection percentage in 2017 was approximately
11 percent of total unemployment insurance from employers
and employees in 2017.
Co-Chair MacKinnon queried comments on the assertion that
there were no clearly defined goals for the program. Ms.
Harbour replied that there were statutory requirements for
reporting performance of the program. She noted that there
was an examination of the fact that some performance
measures were implemented at establishment, but did not fit
the program.
3:18:38 PM
Co-Chair MacKinnon wondered whether the investment board
had created a master list of education opportunities in the
state. Mr. Cashen replied that the Eligible Training
Providers list had all the training providers in the state
that may receive funding.
Co-Chair MacKinnon remarked that there was training
opportunities available in multiple regions in the state.
She wondered whether there may be a duplication of services
by providing additional state money. Ms. Harbour replied
that the Workforce Investment Board outlined areas of high-
demand occupations and industries to invest in training.
The board did a review to determine a workforce demand, the
training capacity, and the possible gaps. She stressed that
the training did not meet the needs in the state. She did
not believe that there was a program by program review.
Co-Chair MacKinnon noted that the department had never
quantified private training sources, so other similar
training was available.
Senator Olson wondered whether any for profit corporations
that received TVEP funding. Ms. Harbour replied that TVEP
funding was only available for not for profit entities. She
furthered that there was the State Training and Employment
Program (STEP) which had private entities that applied for
that program.
Senator Olson wondered whether the private entity received
TVEP funding. Ms. Harbour replied in the negative; a
private entity could only receive STEP funding.
Co-Chair MacKinnon requested a list of recipients of STEP
grant program. Ms. Harbour agreed to provide that
information.
Vice-Chair Bishop queried the list of all the Individual
Training Accounts (ITA) recipients. Ms. Harbour agreed to
provide that information
Co-Chair Hoffman requested a list of the areas of the state
with the highest unemployment rates. Ms. Harbour agreed to
provide that information.
Co-Chair MacKinnon stated that the fiscal notes needed to
be corrected.
3:22:38 PM
AT EASE
3:23:10 PM
RECONVENED
3:23:19 PM
JULI LUCKY, STAFF, SENATOR ANNA MACKINNON, explained the
forthcoming fiscal notes.
Co-Chair MacKinnon remarked that the numbers would be
replicated in the out years, based on the number of years
in the extension.
HB 141 was HEARD and HELD in committee for further
consideration.
3:26:32 PM
AT EASE
3:28:05 PM
RECONVENED
3:28:09 PM
Co-Chair MacKinnon announced the following day's schedule.
3:28:33 PM
RECESS
3:45:10 PM
RECONVENED
SENATE BILL NO. 104
"An Act relating to the duties of the state Board of
Education and Early Development; and relating to
school curriculum."
3:45:45 PM
PAUL PRUSSING, DIRECTOR, DIVISION OF STUDENT LEARNING,
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT (via
teleconference), explained the fiscal note.
Co-Chair MacKinnon asked for further information about the
$1 million for contract services. Mr. Prussing replied that
education consultants "were not cheap." He stated that
there was a difference in the curriculum based on the
education level.
Co-Chair MacKinnon wondered whether the number was for
"Alaska Challenge" or the bill. Mr. Prussing replied that
it referenced the bill.
3:48:42 PM
AT EASE
3:50:50 PM
RECONVENED
Co-Chair MacKinnon remarked that DEED could not suggest
using the Higher Education Fund. She felt that DEED should
have assigned the request at UGF 1004.
Co-Chair MacKinnon changed the fiscal note to $500,0000
3:53:28 PM
Vice-Chair Bishop MOVED to REPORT CSSB 104(FIN) out of
committee with individual recommendations and attached
fiscal note. There being NO OBJECTION, it was so ordered.
CSSB 104(FIN) was REPORTED out of committee with a "do
pass" recommendation and with one new fiscal note from the
Department of Education and Early Development.
[Note: Action to report CSSB 104(FIN) from committee was
later rescinded on February 22, 2018 for further
consideration by the Senate Finance Committee.]
Co-Chair MacKinnon announced the following day's schedule.
Co-Chair Hoffman queried a schedule for the following
Sunday.
Co-Chair MacKinnon announced that she hoped that there
would be "light load" on Sunday, based on floor session.
ADJOURNMENT
3:55:45 PM
The meeting was adjourned at 3:55 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 49 Supporting Document Medicaid Cost Savings CDMs 2015.pdf |
SFIN 4/14/2017 1:30:00 PM |
HB 49 |
| HB 49 Supporting Document Licensing Fees FY06-17.pdf |
SFIN 4/14/2017 1:30:00 PM |
HB 49 |
| HB049 Support Letters 020217.pdf |
SFIN 4/14/2017 1:30:00 PM |
HB 49 |
| HB049 Supporting Documents-Full Sunset Audit 01.30.17.pdf |
SFIN 4/14/2017 1:30:00 PM |
HB 49 |
| SB 104 Amendment Consolidated 1 MacKinnon.pdf |
SFIN 4/14/2017 1:30:00 PM |
SB 104 |