Legislature(2019 - 2020)BUTROVICH 205
02/25/2019 01:30 PM Senate HEALTH & SOCIAL SERVICES
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| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing(s) | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE
February 25, 2019
1:30 p.m.
MEMBERS PRESENT
Senator David Wilson, Chair
Senator John Coghill, Vice Chair
Senator Gary Stevens
Senator Cathy Giessel
Senator Tom Begich
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CONFIRMATION HEARING(S)
Alaska Mental Health Trust Authority Board of Trustees
John Sturgeon-Anchorage
Joe Riggs-Anchorage
Ken McCarty-Chugiak
-CONFIRMATIONS ADVANCED
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
KEN MCCARTY, Governor's Appointee
Alaska Mental Health Trust Authority Board of Trustees
Chugiak, Alaska
POSITION STATEMENT: Testified during his confirmation hearing.
JOHN STURGEON, Governor's Appointee
Alaska Mental Health Trust Authority Board of Trustees
Anchorage, Alaska
POSITION STATEMENT: Testified during his confirmation hearing.
JOE RIGGS, Governor's Appointee
Alaska Mental Health Trust Authority Board of Trustees
Anchorage, Alaska
POSITION STATEMENT: Testified during his confirmation hearing.
JEFF LANDFIELD, representing self
Anchorage, Alaska
POSITION STATEMENT: Opposed the confirmation of Joe Riggs.
ACTION NARRATIVE
1:30:53 PM
CHAIR DAVID WILSON called the Senate Health and Social Services
Standing Committee meeting to order at 1:30 p.m. Present at the
call to order were Senators Coghill, Stevens, Begich, Giessel,
and Chair Wilson.
^CONFIRMATION HEARING(S)
CONFIRMATION HEARING(S)
Alaska Mental Health Trust Authority Board of Trustees
1:31:05 PM
CHAIR WILSON announced the consideration of the governor's
appointees to the Alaska Mental Health Trust Authority Board of
Trustees. Chair Wilson introduced Ken McCarty and asked him to
speak about why he would make a good trustee.
1:31:21 PM
KEN MCCARTY, Governor's Appointee, Alaska Mental Health Trust
Authority Board of Trustees, Chugiak, Alaska, said he could
contribute to the board from a mental health perspective. He has
been involved in many different aspects of mental health from
years of working with foster care and high-level residential
treatment for adolescents and owning a school that served
special needs kids. He is a licensed family and marriage
counselor. He is executive director of Discovery Cove Recovery
and Wellness Center, which is established in Kodiak and Eagle
River with clients in Fairbanks and Valdez. They use innovative
ways to reach out to clients with telemedicine and teletherapy.
He is a pilot and flies out to villages to provide services.
Discovery Cove is nationally accredited. They have psychiatric
services, equine-assisted psychotherapy, and substance abuse
treatment. He has been doing Medicaid-assisted treatment since
2009.
MR. MCCARTY said he has been the president of the Alaska
Marriage and Family Therapy Association from 2013 to 2015. He
was on the Alaska Board of Marital and Family Therapy for six
years. He does not have much experience in land management, but
he has experience in the management of mental health business.
His perspective as a trustee candidate is about priority to
effectiveness of treatment. Financial accountability is
important to be able to offer services and to show the efficacy
of services. People with mental health issues who do not respond
to the same treatment over and over can think they are in dire
straits when there can be other effective treatment. For
example, there is a strong relationship between nutrition and
mental health. He recounted a story of how a client responded
favorably to better nutrition.
MR. MCCARTY said the mental health trust can ask where the
funding is going and is it for effective treatment. They need
nationally accepted, reliable assessments for baselines and
outcomes to monitor programs. A bank would ask for a business
model before investing in a business. The same thing exists in
mental health. Programs must be monitored and they must expect
results to be shown in data.
1:37:20 PM
SENATOR STEVENS said he has known Mr. McCarty for years. He
asked him about the state of mental health in Alaska.
MR. MCCARTY replied that is a broad question. He started doing
opiate treatment with the suboxone piece in Kodiak in 2009.
Heroin was rare in Kodiak. Now it is all over the place. That
was a big issue in Anchorage in 2010. He sees a decline in
opiates because of the effectiveness of requiring physicians to
not overmedicate with pain medication. He is not sure how the
state is doing in other areas. He has no data to show
improvement or not. He has brought up questions about assessing
what is happening above a certain latitude. There is no research
to see if there is an increase in certain mental health issues.
1:39:07 PM
SENATOR BEGICH asked if he has any potential conflicts of
interest because of his ownership of Discovery Cove and how
would he address any conflicts.
MR. MCCARTY replied that he has thought of that. He would recuse
himself if there were a conflict. Discovery Cove does not
receive any grants. It is fee-for-service, so he sees no
conflict there. He thanked the committee members who had been
involved in passing SB 105, which expanded the ability to reach
out to people.
1:40:15 PM
SENATOR GIESSEL said the fact sheet for the Alaska Mental Health
Trust Authority Board of Trustees states that one of the
criteria for qualifications is that an appointment be based on
the ability in financial management, investment land management,
or in services for trust beneficiaries. Mr. McCarty meets that
quite well. She had looked to see if there was a conflict of
interest, and actually this is one of the criteria they look for
with trustees.
CHAIR WILSON introduced the next appointee, John Sturgeon, and
asked him to speak about why he would make a good trustee.
1:41:16 PM
JOHN STURGEON, Governor's Appointee, Alaska Mental Health Trust
Authority Board of Trustees, Anchorage, Alaska, said his work
history includes working for the U.S. Forest Service in
Southeast Alaska. He was also timber manager for the Alaska
Division of Forestry. He ended his time there as State Forester
under Governors Hammond and Sheffield. He has worked for Koncor
Forest Products and harvested timber for the Ouzinkie Native
Corporation. He has his own business, Frontier Trading, which
deals with selling products imported from China. He served in
the U.S. Navy with two tours in Vietnam. He volunteers for a
number of boards. The most relevant one for the Mental Health
board was the regional advisory board for the Pacific Northwest
University of Health Science in Yakima, a new university. It
trains doctors for rural areas in five states, including Alaska.
He resigned from that board six months ago. While on that board,
he visited many medical facilities across the Northwest,
including mental health facilities.
MR. STURGEON said he has had many acquaintances and relatives,
including a special needs granddaughter who is now 19, who have
needed services of the Mental Health Trust facilities. His 49
years in resource management in Alaska would be helpful. He has
done land management for Native corporations in Kodiak and
Ouzinkie since 1986. He can help the trust with their land
holdings. One of their biggest assets in land is timber. Land
management is something he understands well.
SENATOR BEGICH said Mr. Sturgeon has land management experience,
which is one of the qualifications for the board. He asked Mr.
Sturgeon if he was familiar with the four boards that advise the
Mental Health Trust Board.
MR. STURGEON replied vaguely. He went to one meeting and they
all made reports at that meeting. "It was like drinking from a
fire hose that first meeting. It was two days in Juneau. We
weren't confirmed, of course, but we just sat on the side and
tried to listen," he said.
SENATOR BEGICH said he should have asked Mr. McCarty the same
questions. The Mental Health Trust Board of Trustees has had a
troubled history as has had the Mental Health Trust. A
significant audit had scathing results. In-depth engagement
between the board and staff raised questions. He asked if Mr.
Sturgeon thought a member of an authority like the trust should
be involved in day-to-day decisions on a regular basis.
MR. STURGEON said he has been on a lot of boards and he would
not advise that. That is not the role of a board member. The
role of a board member is to review what management is doing,
accept the goals and objectives, lay out a plan for where the
organization should be going, and monitor that plan and budget.
A board member should not be involved on a day-to-day basis.
1:47:38 PM
SENATOR BEGICH asked if a board member for an authority like the
Mental Health Trust should be directly involved or interact on a
regular basis with members of staff, other than the executive
director.
MR. STURGEON said based on his experience on boards and in
management, he would say no. They have frequent board meetings,
seven or eight times a year. They get updates once a week if
something is ongoing. A board member can always call a special
meeting. Getting involved in management on a frequent basis is
not the way best way to run a business.
SENATOR BEGICH said he had an awkward question, but Mr. Sturgeon
is involved in a lawsuit [Sturgeon v. Frost] with potential
connotations regarding things such as land issues and river
rights of way. He asked if Mr. Sturgeon saw any conflict with
his role as a board member.
1:49:10 PM
MR. STURGEON said he couldn't imagine any conflict. He doesn't
know how the Supreme Court will rule. The state of Alaska
supported the lawsuit under three administrations and thought it
was in the best interests of Alaska. In addition, it is all
done, and they should have a ruling soon. There is no more input
to be given. It is out of his hands.
SENATOR BEGICH said to keep the firehose handy. There is a lot
to learn on the board.
SENATOR STEVENS said he has known Mr. Sturgeon and his work with
the Kodiak and Ouzinkie Native corporations. He has led them
through some impressive times and found ways to fund their
organization through timber management. No one else on the board
has his background in timber management. He asked if managing
timber was one of the major ways of funding the trust.
MR. STURGEON said it is a major source of funds. At the last
meeting a chart showed where funds had come from over the years.
Timber was a big contributor. With the recent trade they did
with the Forest Service, it will become more important. He has a
lot of experience with land management. Much of what they do is
related to sales and leases, but timber can be a major
contributor to the trust. There are some big chunks of money
coming in. They are logging Icy Bay, which is a big source of
revenue. The timber they traded for with the Forest Service will
be a big source of income in years to come.
CHAIR WILSON introduced the next appointee, Joe Riggs, and asked
him to speak about why he would make a good trustee.
1:52:29 PM
JOE RIGGS, Governor's Appointee, Alaska Mental Health Trust
Authority Board of Trustees, Anchorage, Alaska, said trustees
have a dual role. "One of being a fiscal conservator, running
the trust in perpetuity. The other side being the program side,
for the benefit of as many beneficiaries as possible," he said.
He would say he is more of a generalist than a specialist when
it comes to his resume. His work experience has taken him down
two paths that have intertwined. One is in finance and the other
is on the medical side. He has been a financial advisor for a
number of years. He has recently reentered the field with a
major firm in Anchorage. He understands portfolio and trust
management and fiduciary responsibilities. He can do the math.
He has access to his firm's toolbox. If there are questions on
the portfolio side, odds are he could find the answer if it were
not readily available to them at the time.
MR. RIGGS said the other side has been in the medical field.
From the age of 15 he was in the back of an ambulance. He was a
paramedic for ten years. He saw firsthand the effects of
substance abuse, homelessness, and mental health issues. From
being a paramedic, he went into practice management, trying to
grow practice while reducing barriers to care. He stood side by
side with physicians in their health care facilities to provide
measurable better patient outcomes at a lower cost. The medical
side of his career has taken him to hospitals across the state,
from the corporate suite down to loading docks with stops in
operating rooms and emergency rooms. He has a good outside view
of how the machine works. At the very least he can interpret
medical jargon.
MR. RIGGS said his son is a trust beneficiary. Ten years ago,
the happiest day of their lives turned into a stay in the
Neonatal Intensive Care Unit. They went from counting toes to
counting seizures. Life hasn't been the same since. They were
dropped into a world of trying to get a diagnosis and trying to
find the best path for their child to get the best outcomes. It
is daunting. People have told him that he knows what other
beneficiaries are going through. He said no one can know what
someone is going through. Every kid is different, but he can
understand what it is like to put a massive amount of family
energy and finances into a child. He understands what it is like
to have the kid who doesn't get invited to birthday parties. He
understands. Because he understands this, he can say that he
doubts that the beneficiaries will ever find a more passionate
and vocal advocate. His understanding is that he will be the
only board member who has an immediate family member as a
beneficiary. That is a driver of his. It has driven him be on
the board of the blood bank so they could work on their stem
cell program, and to be on the board of Challenge Alaska, which
is about adaptive sports. It has been a driving force in his
life for the past ten years. This is the best way for him to
give back to the community.
1:57:25 PM
SENATOR BEGICH asked if he knew the four advisory committees for
the trust.
MR. RIGGS answered that just like Mr. Sturgeon, he was at the
meeting drinking out of the firehose. He said he had spoken to
all the boards. He mentioned the Mental Health Board and the
Governor's Council on Disabilities and Special Education
SENATOR BEGICH said other two are the Board on Alcoholism and
Drug Abuse and the Commission on Aging. He said as he had
mentioned earlier, the Trust Authority has had significant
difficulties, particularly with direct dealings between the
Trust Authority Board and staff. He asked if Mr. Riggs could
separate himself from the day-to-day management of the Trust
Authority.
MR. RIGGS responded that as trustees, they oversee and put their
faith in the CEO and the CEO is responsible for the day-to-day
management of the trust.
SENATOR BEGICH asked if he understood his concern since Mr.
Riggs' described his connection to Merrill Lynch and his ability
to dig into financial details. He asked if he saw that as part
of his responsibilities.
MR. RIGGS said no, he just saw it as a source of information and
knowledge. The financial assets are directly managed by the
Permanent Fund. They don't have any say about how they are
invested on a day-to-day basis.
SENATOR BEGICH asked if he thought a board member of an
authority like the Mental Health Trust should be directly
involved or interact with members of staff on a regular basis
other than the executive director.
MR. RIGGS answered no, but he would like to make himself
available for outreach and education with the approval of the
CEO.
2:00:09 PM
SENATOR BEGICH said he was reluctant to bring this up, but about
an hour ago the committee members received an email about a
mailing during the election. He is concerned about the level of
integrity on the board. Each trustee represents Alaska. He asked
if Mr. Riggs could offer a comment on what [Governor Dunleavy's]
Chief of Staff Tuckerman Babcock called a cheap personal attack
when he was chair of the Republican Party and whether that would
affect his ability to serve on this board.
MR. RIGGS replied that was a fact-based mailer and linked to
source. It had nothing to do with any personal feelings toward
the opponent. It was simply meant to put the truth out about
what the opponent was misstating.
SENATOR BEGICH asked if he felt it would impair his ability to
serve on the board.
MR. RIGGS answered absolutely not. He is for truth and
transparency.
2:02:08 PM
CHAIR WILSON opened public testimony.
2:02:24 PM
JEFF LANDFIELD, representing self, Anchorage, Alaska, opposed
confirmation of Joe Riggs. He said the mailer in question was a
ploy sent to Republicans in the district. Joe Riggs ran against
Albert Fogle and Laddie Shaw in the Republican primary for
District 26. It was a ploy to point out to conservative members
in the district that one of his opponents was gay. It was a
disgusting attack. At the time, the chairman of the Republican
Party, Tuckerman Babcock, described the mailer as a cheap
personal attack and said he was very disappointed in Joe Riggs'
campaign tactics. Along with the mailer, Joe Riggs' campaign set
up a website that portrayed one of his opponents as an openly
gay man with a photoshopped image of his partner. Everyone knew
what it was about. It was a last-minute attack the day before
the election. He did not think that kind of attack in politics
is worthy of the character of someone sitting on the Mental
Health Trust Board of Trustees.
2:04:12 PM
CHAIR WILSON closed public testimony.
2:04:28 PM
SENATOR GIESSEL said that in looking at the roster of current
board members, she only saw two with terms expiring. She asked
what third seat was open.
CHAIR WILSON said he did not know but would find out.
SENATOR STEVENS said he had not seen this email. He asked if the
governor still stood behind his nominees.
CHAIR WILSON replied that he had met with the director of boards
and commissions; at this time, they support all nominees of this
board.
2:05:37 PM
SENATOR COGHILL said regarding the public testimony, the people
should know that for independent expenditures, the involvement
of candidates is forbidden. He found it very unfortunate if
someone's independent expenditure put this guy in an awkward
position. From everything he has read today, it sounded like an
independent expenditure.
SENATOR BEGICH added that Mr. Riggs' testimony indicated that he
was intimately involved and he would caution that there may be
other issues. He said he did not know, but it didn't seem to be
a truly an independent expenditure.
CHAIR WILSON said the chair of the party, who is now the
governor's chief of staff, has had the opportunity to give his
input to the governor. The governor's office still supports all
these candidates today.
SENATOR STEVENS asked if they could make sure three seats are
open before they make their final decision.
SENATOR WILSON answered that they could do that.
SENATOR GIESSEL said the committee is not voting on the
candidates today, so there would be time to get the information.
The joint bodies will decide who goes forward and who does not.
SENATOR BEGICH affirmed what Senator Giessel said. There was
time to get the facts.
2:08:17 PM
At ease
2:20:21 PM
CHAIR WILSON reconvened the meeting. He reported that the third
person is Paula Easley. Her appointment expired in 2018 and was
never reconfirmed by the Walker administration. She was serving
until replaced.
CHAIR WILSON stated that in accordance with AS 39.05.080, the
Senate Health and Social Services reviewed the following and
recommends the appointments be forwarded to a joint session for
consideration:
Alaska Mental Health Trust Authority Board of Trustees
John Sturgeon-Anchorage
Joe Riggs-Anchorage
Ken McCarty-Chugiak
CHAIR WILSON reminded members that signing the reports regarding
appointments to boards and commissions in no way reflects
individual members' approval or disapproval of the appointees;
the nominations are merely forwarded to the full legislature for
confirmation or rejection.
2:21:15 PM
At ease
2:23:06 PM
There being no further business to come before the committee,
Chair Wilson adjourned the Senate Health and Social Services
Standing Committee at 2:23 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Joe Riggs MHTA BOT.pdf |
SHSS 2/25/2019 1:30:00 PM |
Alaska Mental Health Trust Authority Board of Trustees |
| John Sturgeon MHTA BOT.pdf |
SHSS 2/25/2019 1:30:00 PM |
Alaska Mental Health Trust Authority Board of Trustees |
| Ken McCarty MHTA BOT.pdf |
SHSS 2/25/2019 1:30:00 PM |
Alaska Mental Health Trust Authority Board of Trustees |