Legislature(1999 - 2000)

04/27/1999 01:40 PM Senate L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
         SENATE LABOR AND COMMERCE COMMITTEE                                                                                    
                    April 27, 1999                                                                                              
                      1:40 P.M.                                                                                                 
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Senator Jerry Mackie, Chairman                                                                                                  
Senator Tim Kelly, Vice Chairman                                                                                                
Senator Dave Donley                                                                                                             
Senator Lyman Hoffman                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
Senator Loren Leman                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
HOUSE BILL NO. 61                                                                                                               
"An Act relating to an exemption from the requirement for payment                                                               
for overtime under a voluntary written agreement for certain                                                                    
employees in the airline industry; and providing for an effective                                                               
date."                                                                                                                          
                                                                                                                                
     -MOVED HB 61 OUT OF COMMITTEE                                                                                              
                                                                                                                                
CS FOR HOUSE BILL NO. 101(L&C)                                                                                                  
"An Act relating to the mailing requirements that must be followed                                                              
by the commissioner of commerce and economic development to                                                                     
involuntarily dissolve certain organized entities; relating to the                                                              
reinstatement of corporations that are public utilities and that                                                                
have been involuntarily dissolved; and providing for an effective                                                               
date."                                                                                                                          
                                                                                                                                
     -MOVED HB 101 OUT OF COMMITTEE                                                                                             
                                                                                                                                
CS FOR SENATE BILL NO. 71(HES)                                                                                                  
"An Act relating to licensure by the State Medical Board."                                                                      
                                                                                                                                
     -HEARD AND HELD                                                                                                            
                                                                                                                                
PREVIOUS SENATE COMMITTEE ACTION                                                                                                
                                                                                                                                
HB 61 - No previous action to consider.                                                                                         
                                                                                                                                
HB 101 - No previous action to consider.                                                                                        
                                                                                                                                
SB 71 - See HESS minutes dated 4/7/99 and 4/12/99.                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
Representative Andrew Halcro                                                                                                    
State Capitol Bldg.                                                                                                             
Juneau, AK 99811-1182                                                                                                           
POSITION STATEMENT: Sponsor of HB 61.                                                                                           
                                                                                                                                
Mr. Dwight Perkins, Deputy Commissioner                                                                                         
Department of Labor                                                                                                             
P.O. Box 21149                                                                                                                  
Juneau, AK 99802-1149                                                                                                           
POSITION STATEMENT: Supported HB 61.                                                                                            
                                                                                                                                
Representative Carl Morgan                                                                                                      
State Capitol Bldg.                                                                                                             
Juneau, AK 99811-1182                                                                                                           
POSITION STATEMENT: Sponsor of HB 101.                                                                                          
                                                                                                                                
Mr. Ashley Reed                                                                                                                 
360 W Benson #200                                                                                                               
Anchorage, AK 99503                                                                                                             
POSITION STATEMENT: Commented on HB 101.                                                                                        
                                                                                                                                
Ms. Dawn William                                                                                                                
Division of Banking, Securities and Corporations                                                                                
Department of Commerce                                                                                                          
P.O. Box 110807                                                                                                                 
Juneau, AK 99811-0907                                                                                                           
POSITION STATEMENT: Supported HB 101.                                                                                           
                                                                                                                                
Dr. Sarah Isto, Chairperson                                                                                                     
State Medical Board                                                                                                             
1718 Willow Dr.                                                                                                                 
Juneau, AK 99801                                                                                                                
POSITION STATEMENT: Supported SB 71.                                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 99-18, SIDE A                                                                                                              
                                                                                                                                
Number 001                                                                                                                      
                                                                                                                                
        HB 61-OVERTIME WAGE EXEMPTION AIRLINE EMPLOYEES                                                                         
                                                                                                                                
CHAIRMAN MACKIE called the Senate Labor and Commerce Committee                                                                  
meeting to order at 1:43 p.m. and announced HB 61 to be up for                                                                  
consideration.                                                                                                                  
                                                                                                                                
REPRESENTATIVE HALCRO, sponsor, said that HB 61 allows exemption of                                                             
overtime for airline employees.  It has the support of the unions                                                               
and industry.                                                                                                                   
                                                                                                                                
SENATOR KELLY asked if it was limited to airlines.                                                                              
                                                                                                                                
REPRESENTATIVE HALCRO answered yes.                                                                                             
                                                                                                                                
SENATOR KELLY asked if it applied to airline pilots.                                                                            
                                                                                                                                
REPRESENTATIVE HALCRO answered no.                                                                                              
                                                                                                                                
SENATOR KELLY commented that pilots are regulated by the FAA.                                                                   
                                                                                                                                
CHAIRMAN MACKIE asked if there was any opposition to this bill.                                                                 
                                                                                                                                
REPRESENTATIVE HALCRO answered there was no opposition                                                                          
                                                                                                                                
MR. DWIGHT PERKINS, Department of Labor, said the Department has a                                                              
policy to oppose any changes to wage and hour overtime law, but                                                                 
during the interim they talked to employee groups and individuals                                                               
and found that they don't oppose this bill.                                                                                     
                                                                                                                                
SENATOR KELLY moved to pass HB 61 with individual recommendations.                                                              
There were no objections and it was so ordered.                                                                                 
                                                                                                                                
         HB 101-CORPORATE PUBLIC UTILITY REINSTATEMENT                                                                          
                                                                                                                                
CHAIRMAN MACKIE announced HB 101 to be up for consideration.                                                                    
                                                                                                                                
REPRESENTATIVE MORGAN, sponsor, said this legislation is a vehicle                                                              
to allow the Alaska Department of Commerce and Economic Development                                                             
the discretion to reinstate, as a corporation, a local exchange                                                                 
(telecommunications) company that serves several communities in                                                                 
western Alaska.  This legislation also clearly outlines                                                                         
departmental procedure for corporate notification that should                                                                   
prevent further involuntary dissolutions.                                                                                       
                                                                                                                                
Bush-Tell is a small, rural local exchange telephone company                                                                    
located in Aniak, Alaska.  It provides local exchange telephone                                                                 
service to ten small villages in Western Alaska.  Bush-Tell was                                                                 
incorporated on November 10, 1969 and has been providing                                                                        
telecommunications service since 1970.  The President and sole                                                                  
shareholder of Bush-Tell recently contacted the Alaska Division of                                                              
Banking, Securities & Corporations to find out about registering a                                                              
"dba" and was informed that Bush-Tell was no longer registered as                                                               
a corporation with the Division.  Bush-Tell had been involuntarily                                                              
dissolved in 1993 for failing to file its biennial report and/or                                                                
failing to pay its biennial corporate tax for the period ending                                                                 
December 31, 1992.                                                                                                              
                                                                                                                                
Upon investigation, it was discovered that Bush-Tell's registered                                                               
agent had failed to follow the proper statutory procedures for                                                                  
resigning as a registered agent and that his omissions resulted in                                                              
the involuntary dissolution of Bush-Tell.                                                                                       
                                                                                                                                
Bush-Tell's designated agent was a sole practitioner in Anchorage                                                               
who also served as Bush-Tell's general counsel.  In the early                                                                   
1980's, Bush-Tell hired another law firm to do its legal work, but                                                              
continued to retain the sole practitioner as its registered agent.                                                              
The forms for Bush-Tell's biennial reports were sent to the                                                                     
registered agent and were filed by the registered agent up to and                                                               
including the period ending December 31, 1990.                                                                                  
                                                                                                                                
In 1991, the registered agent left the private practice of law,                                                                 
closed his office and left a forwarding address for his mail with                                                               
the U.S. Postal Service.  The registered agent did not inform the                                                               
Alaska Division of Banking, Securities & Corporations that his                                                                  
address was changing or that he was resigning as Bush-Tells'                                                                    
registered agent.  Alaska Statute requires that, if a registered                                                                
agent resigns, they first file a written notice with the                                                                        
commissioner setting out the latest address of the principal office                                                             
of the corporation and the names, addresses and titles of the most                                                              
recent officers of the corporation. The commission must then                                                                    
immediately mail a copy of the notice to the corporation at its                                                                 
principal office.                                                                                                               
                                                                                                                                
On July 12, 1993, the Alaska Division of Banking, Securities &                                                                  
Corporations sent a notice by certified mail to Bush-Tell, in care                                                              
of the registered agent, informing Bush-Tell it had not filed its                                                               
biennial report and/or tax for the period ending December 31, 1992                                                              
and, if the biennial report and/or tax are not mailed by September                                                              
19, 1993, the Certificate of Involuntary Dissolution will be issued                                                             
and the corporation will cease to exist as of September 20, 1993.                                                               
This notice was returned to the Alaska Division of Banking,                                                                     
Securities & Corporations because the registered agent's forwarding                                                             
notice had expired.  On September 20, 1993, Bush-Tell was                                                                       
involuntarily dissolved.                                                                                                        
                                                                                                                                
Since the time of dissolution, and even after discovering the                                                                   
involuntary dissolution, Bush-Tell has observed all of the                                                                      
corporate procedures required by its Bylaws and Alaska law                                                                      
including holding regular board of directors meetings and paying                                                                
corporate income tax.                                                                                                           
                                                                                                                                
This legislation corrects an involuntary dissolution and                                                                        
statutorily establishes corporate notification procedures used by                                                               
the Department of Commerce and Economic Development to prevent                                                                  
similar situations from happening in the future.                                                                                
                                                                                                                                
Procedures would require mail be sent certified to a corporation's                                                              
registered office.  If returned, it would be sent first class to                                                                
the president of the corporation or to another officer.  The                                                                    
requirements would apply to for-profit, electric and telephone                                                                  
cooperatives, religious corporations, limited liability                                                                         
corporations, cooperatives, nonprofit cemetery corporations, and                                                                
professional corporations.  These requirements would not apply to                                                               
business and industrial development corporations (BIDCO), as they                                                               
do not have provisions for dissolution.  These requirements do                                                                  
apply to revocation of certificates of authority for out-of-state                                                               
organized entities.                                                                                                             
                                                                                                                                
MR. ASHLEY REED testified on HB 61, but due to a taping                                                                         
malfunction, his testimony did not record.                                                                                      
                                                                                                                                
SENATOR HOFFMAN asked how this legislation would work.                                                                          
                                                                                                                                
REPRESENTATIVE MORGAN answered that this is putting policy into                                                                 
statute.                                                                                                                        
                                                                                                                                
SENATOR DONLEY asked where Section 10 of the bill went into                                                                     
statute, because it didn't say where it goes.  He asked if it goes                                                              
in the temporary section of the statute.                                                                                        
                                                                                                                                
MS. DAWN WILLIAMS, Department of Commerce, explained a temporary                                                                
section in the bill has happened with native corporations in the                                                                
past.  They have a certain time limit in which to reinstate, and                                                                
after that time, the language is deleted.                                                                                       
                                                                                                                                
CHAIRMAN MACKIE said they would check with the drafters to make                                                                 
sure nothing was left out and asked if the Department supported the                                                             
bill.                                                                                                                           
                                                                                                                                
MS. WILLIAMS said yes.                                                                                                          
                                                                                                                                
CHAIRMAN MACKIE asked her to explain how this was able to happen                                                                
and if they have a new policy in the meantime for notifications.                                                                
                                                                                                                                
MS. WILLIAMS responded that she didn't know what happened in this                                                               
case as she wasn't here in 1993.  She thought the certified notice                                                              
was sent to the registered agent and returned.  She didn't know if                                                              
they then sent it then to a principle officer or not.  Sections 3                                                               
and 8 will require them to do the policy and more.                                                                              
                                                                                                                                
SENATOR KELLY moved to pass CSHB 101(L&C) with individual                                                                       
recommendations.  There were no objections and it was so ordered.                                                               
                                                                                                                                
               SB  71-PHYSICIAN LICENSURE CHANGES                                                                               
                                                                                                                                
CHAIRMAN MACKIE announced SB 71 to be up for consideration.                                                                     
                                                                                                                                
DR. SARAH ISTO, Chair of the State Medical Board, explained that SB
72 resolves licensure problems for the Board, updates Alaska                                                                    
statutes in relation to other states, and corrects unintended                                                                   
problems within the current law.  DR. ISTO said the State Medical                                                               
Board supports the bill.                                                                                                        
                                                                                                                                
DR. ISTO explained there have been several difficulties over the                                                                
past few years that this bill is intended to remedy. There are                                                                  
seven specific problems SB 71 deals with. First, the Board is not                                                               
currently able to consider the fact that an applicant is a                                                                      
convicted felon, unless the felony was committed during the                                                                     
practice of medicine. The Board would like to be able to consider                                                               
felony and misdemeanor offenses when they relate to an applicant's                                                              
fitness to practice.                                                                                                            
                                                                                                                                
Second, DR. ISTO said this bill will prevent delays and                                                                         
interruptions in the delivery of patient care. Currently, if a                                                                  
person is short of continuing education credits, they are supposed                                                              
to stop work immediately. SB 71 will allow a person to continue                                                                 
practicing while a minor deficiency is corrected.                                                                               
                                                                                                                                
Next, DR. ISTO explained SB 71 will fix a problem for residents                                                                 
being trained as doctors. Currently, only one-year permits and                                                                  
licences are awarded, though this is a three-year program in                                                                    
Anchorage.  This bill will allow residents to be licenced after two                                                             
years.                                                                                                                          
                                                                                                                                
Also, Section 5 removes a prohibition on considering anything short                                                             
of a suspension or revocation in another state. DR. ISTO said the                                                               
Board needs to be able to consider other disciplinary actions and                                                               
this section of the bill simply "extends the language into modern                                                               
day discipline uses."                                                                                                           
                                                                                                                                
Section 6 deals with citizenship. Alaska is the only state that                                                                 
requires this, and DR. ISTO remarked she does not think this is                                                                 
pertinent to a doctor's competence. There are people who are                                                                    
legally in the U.S. that are not able to see patients in Alaska,                                                                
and DR. ISTO said she would like to see this requirement deleted.                                                               
                                                                                                                                
Section 7 deals with foreign medical graduates who come from                                                                    
medical schools that are not accredited by the U.S. or Canada.                                                                  
Currently, a person is required to have completed one year of post                                                              
graduate training in an accredited school. Forty-seven other states                                                             
require a person to have completed  three years of post graduate                                                                
training in an accredited school of medicine. She would like to see                                                             
Alaska adopt the three year standard. Additionally, people who                                                                  
graduate from accredited schools after 1995 would be required to                                                                
have two years of post-graduate training.                                                                                       
                                                                                                                                
SENATOR KELLY expressed concern about language on page 4, line 28                                                               
of the bill which gives the Board too much latitude and discretion                                                              
to consider misdemeanor offenses.   DR. ISTO replied the language                                                               
of the bill requires the misdemeanor to be "substantially related                                                               
to the qualifications, functions or duties of the licensee" in                                                                  
order to be considered by the Board. SENATOR KELLY agreed that is                                                               
the initial language, but the bill goes on to say "or a misdemeanor                                                             
in this or any other jurisdiction." SENATOR KELLY stated, "That's                                                               
any misdemeanor . . . I don't want to give the Board that kind of                                                               
discretion."                                                                                                                    
                                                                                                                                
DR. ISTO said she still reads the bill to allow consideration of a                                                              
misdemeanor only as it relates to fitness to practice. SENATOR                                                                  
KELLY maintained that even if the consideration is tied to fitness                                                              
to practice, "That's just a lot of discretion to give to a group of                                                             
people who control their own profession." He asked why it is                                                                    
necessary to give the Board discretion to reject an application by                                                              
a person who has committed a misdemeanor. DR. ISTO stated it is not                                                             
the intention of the Board to "lightly decline applicants because                                                               
they had some misdemeanor." She said she believes the Board would                                                               
be willing to modify this, if they were still given the discretion                                                              
to consider felonies.                                                                                                           
                                                                                                                                
SENATOR MACKIE asked if this section deals with the Board imposing                                                              
sanctions on licensees who have been convicted. He said his concern                                                             
is that a person who has committed a misdemeanor may be denied the                                                              
opportunity to practice medicine. DR. ISTO said she had only                                                                    
intended the Board be able to consider these things, not                                                                        
necessarily act on them or "sanction somebody or refuse a new                                                                   
applicant." She repeated it was not the intent of the Board to                                                                  
include language that would allow denial of a license or sanction                                                               
for a misdemeanor "of no consequence to the practice of medicine."                                                              
Again, she said she would agree to softening of the language if the                                                             
Board retained the right to consider felonies. SENATOR MACKIE                                                                   
thought that was the current law.  MS. ISTO explained felonies                                                                  
could be considered only if they occur as part of a person's duties                                                             
as a physician.                                                                                                                 
                                                                                                                                
SENATOR MACKIE asked who wanted the misdemeanor language. He                                                                    
thought an example of a misdemeanor the Board might want to                                                                     
consider would help the committee understand the motivation behind                                                              
the proposed amendments. DR. ISTO suggested the Board may wish to                                                               
consider a recent DWI.                                                                                                          
                                                                                                                                
SENATOR DONLEY suggested the committee was going back over the same                                                             
ground and "somebody should either propose something or we should                                                               
hold the bill over."                                                                                                            
                                                                                                                                
SENATOR KELLY reiterated he is uncomfortable with the idea of tying                                                             
a misdemeanor to the fitness to practice. He said this could be a                                                               
subjective judgement of whomever happens to be on the Medical Board                                                             
at the time. It is an expansion of the Board's power that makes him                                                             
nervous. SENATOR DONLEY agreed. SENATOR MACKIE proposed he would                                                                
hold the bill over while they worked on this issue.                                                                             
                                                                                                                                
Number 532                                                                                                                      
                                                                                                                                
MS. CATHERINE REARDON, Director of the Division of Occupational                                                                 
Licencing, testified that the Department strongly supports the                                                                  
bill. She noted that the Medical Board is interested in licencing                                                               
people quickly and does not attempt to block applications                                                                       
unnecessarily. She suggested the Board may wish to consider                                                                     
misdemeanors involving recent substance abuse, and said there is a                                                              
need to consider felonies unrelated to the practice of medicine.                                                                
She mentioned there is always a right to a due process hearing,                                                                 
which checks irresponsible application of a person's history by the                                                             
Board. She stated the bill has a zero fiscal note and the                                                                       
Department supports it.                                                                                                         
                                                                                                                                
CHAIRMAN MACKIE thanked everyone for their testimony and said they                                                              
would hold SB 71 and adjourned the meeting at 2:28 p.m.                                                                         

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