Legislature(1999 - 2000)

04/04/2000 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 4, 2000                                                                                               
                      1:40 P.M.                                                                                                 
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Senator Jerry Mackie, Chairman                                                                                                  
Senator Tim Kelly, Vice Chairman                                                                                                
Senator Loren Leman                                                                                                             
Senator Lyman Hoffman                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
Senator Dave Donley                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
CS FOR HOUSE BILL NO. 296(L&C)                                                                                                  
                                                                                                                                
"An Act relating to partnerships; amending Rule 25(c), Alaska Rules                                                             
of Civil Procedure; and providing for an effective date."                                                                       
                                                                                                                                
     -MOVED CSHB 296(L&C)OUT OF COMMITTEE                                                                                       
                                                                                                                                
CS FOR HOUSE JOINT RESOLUTION NO. 48(RLS)                                                                                       
Relating to the free flow of people and the fair trade of goods and                                                             
services across the border between the United States and Canada.                                                                
                                                                                                                                
     -MOVED CSHJR 48(RLS)OUT OF COMMITTEE                                                                                       
                                                                                                                                
SENATE BILL NO. 280                                                                                                             
"An Act relating to licensing common carriers to dispense alcoholic                                                             
beverages; and providing for an effective date."                                                                                
                                                                                                                                
     -MOVED SB 280 OUT OF COMMITTEE                                                                                             
                                                                                                                                
CS FOR SENATE BILL NO. 297(L&C)                                                                                                 
"An Act relating to the licensing of chiropractors and to                                                                       
disciplinary actions against chiropractors."                                                                                    
                                                                                                                                
     -MOVED CSSB 297(L&C)OUT OF COMMITTEE                                                                                       
                                                                                                                                
PREVIOUS SENATE COMMITTEE ACTION                                                                                                
                                                                                                                                
HB 296 - No previous action to consider.                                                                                        
                                                                                                                                
HJR 48 - No previous action to consider.                                                                                        
                                                                                                                                
SB 280 - No previous action to consider.                                                                                        
                                                                                                                                
SB 297 - No previous action to consider.                                                                                        
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
Mr. Pat Harmon, Aide                                                                                                            
Representative Pete Kott                                                                                                        
State Capitol Bldg.                                                                                                             
Juneau, AK 99801                                                                                                                
POSITION STATEMENT:  Sponsor of HB 296.                                                                                         
                                                                                                                                
Mr. Art Peterson, UCCUSL                                                                                                        
Uniform Law Commissioner                                                                                                        
350 N. Franklin Street                                                                                                          
Juneau, AK 99801                                                                                                                
POSITION STATEMENT:  Supported HB 296.                                                                                          
                                                                                                                                
Mr. Scott Petsel, Aide                                                                                                          
Representative Gail Phillips                                                                                                    
State Capitol Bldg.                                                                                                             
Juneau, AK 99801                                                                                                                
POSITION STATEMENT:  Sponsor of HJR 48.                                                                                         
                                                                                                                                
Mr. David Gray, Aide                                                                                                            
Senator Jerry Mackie                                                                                                            
State Capitol Bldg.                                                                                                             
Juneau, AK                                                                                                                      
POSITION STATEMENT: Commented on SB 280 and SB 297.                                                                             
                                                                                                                                
Mr. Doug Griffin, Director                                                                                                      
Alcoholic Beverage Control Board                                                                                                
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Supported SB 280.                                                                                           
                                                                                                                                
Mr. Irving Bertram, Associate General Counsel                                                                                   
Alaska Airlines                                                                                                                 
Anchorage, AK                                                                                                                   
POSITION STATEMENT:  Supported SB 280.                                                                                          
                                                                                                                                
Ms. Sharon Clark, Aide                                                                                                          
Senator Mike Miller                                                                                                             
State Capitol Bldg.                                                                                                             
Juneau, AK 99801                                                                                                                
POSITION STATEMENT: Commented in SB 297.                                                                                        
                                                                                                                                
Ms. Catherine Reardon, Director                                                                                                 
Division of Occupational Licensing                                                                                              
Department of Community and Economic Development                                                                                
P.O. Box 10806                                                                                                                  
Juneau, AK 99801                                                                                                                
POSITION STATEMENT: Supported SB 297.                                                                                           
                                                                                                                                
Dr. Morgan, President                                                                                                           
Chiropractic Society                                                                                                            
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Supported SB 297.                                                                                           
                                                                                                                                
Ms. Mary Veale                                                                                                                  
American Physical Therapy Association                                                                                           
P.O. Box 240286                                                                                                                 
Douglas, AK 99824                                                                                                               
POSITION STATEMENT: Commented on SB 297.                                                                                        
                                                                                                                                
Ms. Karen Grafton, President                                                                                                    
Alaska Physical Therapy Association                                                                                             
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Opposed SB 297.                                                                                             
                                                                                                                                
Mr. George Salmon                                                                                                               
Fairbanks, AK                                                                                                                   
POSITION STATEMENT:  Commented on SB 297.                                                                                       
                                                                                                                                
Ms. Cheryl Sackett                                                                                                              
Fairbanks, AK                                                                                                                   
POSITION STATEMENT:  Commented on SB 297.                                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 00-13, SIDE A                                                                                                              
Number 001                                                                                                                      
                                                                                                                                
                 HB 296-UNIFORM PARTNERSHIP ACT                                                                                 
                                                                                                                                
CHAIRMAN MACKIE called the Senate Labor and Commerce Committee                                                                  
meeting to order at 1:40 p.m. and announced HB 296 to be up for                                                                 
consideration.                                                                                                                  
                                                                                                                                
MR. PAT HARMON, Aide to Representative Pete Kott, said HB 296 is                                                                
the Uniform Partnership Act.  Present statutes are seriously out of                                                             
date and based on the 1914 version.  Two things have changed over                                                               
the years; one is that the individual concept in the 1914 Act is a                                                              
partnership entity and the other is the way the default                                                                         
classification for businesses works.  Now the default                                                                           
classification is a partnership.                                                                                                
                                                                                                                                
MR. ART PETERSON, Uniform Law Commissioner, stepped to the witness                                                              
stand for comments.                                                                                                             
                                                                                                                                
CHAIRMAN MACKIE stated that Mr. Peterson had been before this                                                                   
committee for many years for updating statutes.  They all had a lot                                                             
of respect for his knowledge and the work that he does on these.                                                                
He asked if he could touch on the highlights of this and inform                                                                 
them of significant changes that may or may not have controversy.                                                               
                                                                                                                                
MR. PETERSON said he had a lot of materials from the National                                                                   
Conference.  He said the original Uniform Partnership Act was                                                                   
enacted in all states except Louisiana.  The partnership law of                                                                 
this country is the Uniform Partnership Act plus the court                                                                      
decisions interpreting it.  When that Act changes, Alaska has to                                                                
flow with it or we're going to be doing a number of business                                                                    
entities a great disservice.  There are provisions in there for                                                                 
conversion from a regular partnership to a limited partnership and                                                              
provisions dealing with limited liability partnerships.  This has                                                               
already been enacted in 24 states and four states have enacted the                                                              
1994 version without the limited liability partnership provisions                                                               
that this bill includes.                                                                                                        
                                                                                                                                
The revision reflects modern business practices and more than eight                                                             
decades of court decisions and scholarly analysis in recognition of                                                             
how business is done.                                                                                                           
                                                                                                                                
The basic changes are the statutory statement of the entity concept                                                             
of partnerships changing from the earlier version  of the aggregate                                                             
of individuals concept.  The current law is a confusing mix of the                                                              
two concepts and the bill before them clearly adopts the entity                                                                 
concept and the ramifications of that appear throughout the bill.                                                               
The basic one being, when a partner leaves the partnership, it                                                                  
doesn't collapse as it does under current law.  The partnership                                                                 
will continue and there are provisions for how a partner gets out,                                                              
etc.                                                                                                                            
                                                                                                                                
The Department of Community and Economic Development had one                                                                    
concern that they presented in the House - changing annual reports                                                              
to biennial.  Another changes is the transition period from a five                                                              
year period to a three year period.  Everyone is agreeable with                                                                 
that.  The bill carefully tracks the national version.                                                                          
                                                                                                                                
CHAIRMAN MACKIE noted that there were all "Do Passes" throughout                                                                
the committee process and it passed 36 - 0 in the House.                                                                        
                                                                                                                                
SENATOR KELLY moved to pass CSHB 296 (L&C) from committee with                                                                  
individual recommendations.  There were no objections and it was so                                                             
ordered.                                                                                                                        
                                                                                                                                
        HJR 48-ACCESS ACROSS UNITED STATES/CANADA BORDER                                                                        
                                                                                                                                
CHAIRMAN MACKIE announced HJR 48 to be up for consideration.                                                                    
                                                                                                                                
MR. SCOTT PETSEL, Aide to Representative Gail Phillips, sponsor,                                                                
HJR 48 relating to the free flow of people and fair trade of goods                                                              
and services across the border between the U.S. and Canada.                                                                     
                                                                                                                                
Section 110 of the Illegal Immigration Reform and Immigrant                                                                     
Responsibility Act of 1996 calls for the implementation of an                                                                   
automated entry/exit control system to record all entries to and                                                                
departures from the Unites States regardless of the person's                                                                    
nationality, regardless of the location of entry, and regardless of                                                             
the method of entry.  These controls are slated to be in place by                                                               
March 2001.  The resolution is specific to Canadians and the                                                                    
borders between the United States and Canada.                                                                                   
                                                                                                                                
Currently, if you are a traveler coming from Canada, you are                                                                    
required to stop at the U.S. border and show them your "papers."                                                                
As you leave the country, you're not required to stop at the U.S.                                                               
border crossing station.                                                                                                        
                                                                                                                                
Under Section 110, all travelers would have to stop in both                                                                     
directions and fill out detailed paperwork regarding personal                                                                   
information and trip details.  This would create quite a traffic                                                                
jam at several of the border crossing stations.  It also goes                                                                   
against years of cooperative agreements between the United States                                                               
and Canada including the Shared Border Accord of 1995 and the                                                                   
Canadian/US Partnership Forum.                                                                                                  
                                                                                                                                
The resolution is a variation of one passed by the Council of State                                                             
Governments West late last year.  HJR 48 specifically calls for                                                                 
U.S. Congress to amend the Illegal Immigration Reform and Immigrant                                                             
Responsibility Act of 1996 to provide for the exemption of                                                                      
Canadians from requirements of Section 110 at all land border                                                                   
crossing between the U.S. and Canada.                                                                                           
                                                                                                                                
As background, MR. PETSEL said, Canadians spent a total of $7.3                                                                 
billion dollars in the United States last year.  Bilateral trade                                                                
between the countries was $397 billion in 1998.  In 1998 with                                                                   
Alaska alone, Canadians traded a total of $492 million worth of                                                                 
goods.  Other states have adopted resolutions of varying levels of                                                              
support for the repeal of Section 110 or the amendment to exempt                                                                
Canadians from Section 110 from the Act of 1996.  Also, on the                                                                  
federal level, there has been a lot of actions in various                                                                       
Congresses of the past to either call for the repeal of Section                                                                 
110 or the exemption of land border crossing from Section 110.  A                                                               
recent update from Congressman Young's office says that a                                                                       
bipartisan group is working right now on an agreement on how to                                                                 
approach the Section 110 issue with the interest of increasing our                                                              
capacity at borders to facilitate the free flow of tourism and                                                                  
trade.  He asked for the committee's support.                                                                                   
                                                                                                                                
SENATOR LEMAN moved to pass CSHJR 48(RLS) from committee with                                                                   
individual recommendations. SENATOR KELLY said that he has some                                                                 
trouble with this.  He thought the U.S. should be strengthening its                                                             
borders as opposed to weakening them.  He didn't think that most of                                                             
our Canadian friends would be a problem, but there were other                                                                   
people who get into this country through Canada.  He probably                                                                   
wouldn't support this legislation.                                                                                              
                                                                                                                                
MR. PETSEL said the resolution does nothing to change the current                                                               
requirements.  It doesn't lessen them, but it doesn't add control                                                               
requirements.  In part, the resolution asks for support to exempt                                                               
Canadians from land border crossings between the U.S. and Canada,                                                               
not other borders and not other nationalities.                                                                                  
                                                                                                                                
There were no objections to moving the bill from committee and it                                                               
was so ordered.                                                                                                                 
                                                                                                                                
              SB 280-COMMON CARRIER LIQUOR LICENSE                                                                              
                                                                                                                                
CHAIRMAN MACKIE announced SB 280 to be up for consideration.  He                                                                
said he introduced the bill on behalf of the committee at the                                                                   
request of Alaska Airlines and his staff, David Gray, would tell                                                                
them what it does.                                                                                                              
                                                                                                                                
MR. GRAY said Alaska Airlines has requested that the current                                                                    
licensing requirements for common carrier beverage dispensing                                                                   
licenses be modified for two reasons: first to simplify the                                                                     
requirements so that adding aircraft will not require an additional                                                             
new application process involving filling out the application,                                                                  
supply and support exhibits, posting and publishing the application                                                             
for the license. Alaska and the Alcoholic Beverage Control Board                                                                
(ABC) agree that modifying the statute to simply obtaining                                                                      
additional common carrier licenses will reduce the clerical and                                                                 
administrative work for both Alaska Airlines and the Board and is,                                                              
therefore, in the public interest.                                                                                              
                                                                                                                                
Secondly, Alaska Airlines would like the fees reduced. They                                                                     
currently have 89 planes and plan to add six or more aircraft each                                                              
year.  The growth of the Alaska Airlines fleet substantially                                                                    
exceeds the growth of its interstate flying.  Since every aircraft                                                              
must be separately licensed and every license costs them $450 per                                                               
year (a $700 biennial, plus a $200 yearly license fee), the fees                                                                
have become quite high and continue to escalate at a faster rate                                                                
than its interstate fleet will escalate.                                                                                        
                                                                                                                                
Alaska Airlines only operates a small portion of its fleet on                                                                   
interstate routes on any given day.  In addition, it should be                                                                  
noted that none of the other major airlines serving Alaska, with                                                                
the possible exception of Delta, obtain Alaska liquor licenses                                                                  
because they don't operate interstate.  Alaska Airlines believes                                                                
they pay substantially more for the common carrier licenses than                                                                
any other licensee in Alaska.  It seems fair to reduce the fees to                                                              
more accurately reflect the costs to the Board of issuing licenses                                                              
and the interstate presence that Alaska Airlines actually has.                                                                  
                                                                                                                                
If the proposed bill becomes law, they will still pay more in fees                                                              
to Alaska than it pays to any other state.                                                                                      
                                                                                                                                
CHAIRMAN MACKIE asked if they have 89 or 95 aircraft after this                                                                 
year, if they currently have to license every one of them, even if                                                              
they are not flying in Alaska because of the way the law was                                                                    
written.                                                                                                                        
                                                                                                                                
MR. GRAY said that was correct. Any plane in their fleet that may                                                               
come into Alaska once within a year's time will have to have a full                                                             
license.                                                                                                                        
                                                                                                                                
CHAIRMAN MACKIE commented that they were trying to bring their fees                                                             
more into line with the number of aircraft they actually have                                                                   
flying in the State and asked how that would be done.                                                                           
                                                                                                                                
MR. GRAY replied under the bill, 10 licenses would be the full                                                                  
licenses.  After that, other planes would have a reduced licensure.                                                             
In other words, the whole fleet would be licensed this way.                                                                     
                                                                                                                                
Number 1209                                                                                                                     
                                                                                                                                
MR. DOUG GRIFFIN, Director, ABC Board, said Alaska Airlines made a                                                              
presentation to the Board last summer when it met in Fairbanks                                                                  
regarding this issue.  He echoed Mr. Gray's comments and said the                                                               
Board was sympathetic.  They also raised concerns about how                                                                     
complicated it was to license all those aircraft even though the                                                                
Board had done everything they could to streamline that process.                                                                
The root of the problems is the need for a statute change.  The                                                                 
statutes in Alaska regarding common carrier liquor licenses reflect                                                             
needing to license every vehicle, airplanes, boats, railcars, and                                                               
those types of things.  This is just a growing pains issue for                                                                  
Alaska.                                                                                                                         
                                                                                                                                
MR. GRIFFIN  said it would be a loss of revenue for the State, but                                                              
the Board looks at the fairness issue versus what is a fairly small                                                             
loss of revenue.  The draft of SB 280 was presented to the Board                                                                
when it met in February.  They didn't take a position at the time                                                               
and expressed interest in trying to tie the licensing to something                                                              
versus the number ten that was picked out of thin air.  They worked                                                             
with Alaska Airlines to find something that in some way would                                                                   
reflect the number of planes that were actually flying within the                                                               
state, for instance, during a given day. He said the Board would                                                                
like to use a number that's used in terms of how many licenses they                                                             
have to buy at full price that reflects the actual number of craft                                                              
that fly in the State.  That keeps it on par with other types of                                                                
vehicles that are operating within the State.  He concluded that                                                                
they would support some kind of modification to the common carrier                                                              
provisions in Title 4.                                                                                                          
                                                                                                                                
CHAIRMAN MACKIE asked Mr. Griffin if Section 1 allows for the Board                                                             
by regulation to make some of those determinations, in terms of                                                                 
numbers.                                                                                                                        
                                                                                                                                
MR. GRIFFIN said section 1 by itself doesn't allow them to do that.                                                             
They talked to Mr. Irving Bertram, legal counsel for Alaska                                                                     
Airlines, about taking a snapshot of a day in the life of Alaska                                                                
Airlines in the State of Alaska and how many planes they actually                                                               
had operating flying between points in Alaska on a given day.  They                                                             
picked January 1, the first day of a licensing cycle.  They came up                                                             
with 22 planes.  The Board felt that they should license the number                                                             
of planes that actually operate up here and if they bring in                                                                    
additional planes from within their fleet, it could still operate                                                               
within that 22(or so) license.  They would basically be licensing                                                               
routes and the number of planes that operate on an average in the                                                               
State.  The difference in money between this bill and the original                                                              
bill isn't that great.                                                                                                          
                                                                                                                                
SENATOR LEMAN said on the fiscal note, the next to the last line                                                                
says if the filing fee is waived for licenses after the first 10,                                                               
an additional $16,000 in revenue would be lost every two years and                                                              
asked if that was a discretionary action.                                                                                       
                                                                                                                                
MR. GRIFFIN answered that they were interpreting that to mean they                                                              
would continue to pay the $200 application or renewal fee.  For any                                                             
licenses in excess of 10, the application fee is actually more than                                                             
the license fee which seems a little at odds.  This is assuming                                                                 
they are going to continue to pay a $200 fee for each license.  If                                                              
the $200 fee is also waived for any licenses greater than 10, there                                                             
would be additional cost to the State.  They are not interpreting                                                               
it that way, however.                                                                                                           
                                                                                                                                
SENATOR LEMAN said if there's any possibility it might be                                                                       
interpreted differently, wouldn't it make sense to clarify that.                                                                
Is that something in regulation.                                                                                                
                                                                                                                                
MR. GRIFFIN answered that's a statutory thing.  SB 280 doesn't                                                                  
alter the application fee.  He thought it good to put on the record                                                             
that the intent is not to have it waived.                                                                                       
                                                                                                                                
CHAIRMAN MACKIE said that certainly wasn't the intent of the                                                                    
sponsor and that's why they are talking about the other fee, not                                                                
the renewal fee.                                                                                                                
                                                                                                                                
MR. IRVING BERTRAM, Associate General Counsel for Alaska Airlines,                                                              
said he has been the party negotiating to acquire and finance                                                                   
aircraft for the company for over 20 years.  Alaska Airlines                                                                    
currently has a fleet of 89 aircraft and because of the way they                                                                
establish routings, it's impossible for them to say with any degree                                                             
of definiteness that they can keep one of their aircraft out of the                                                             
State of Alaska or off an intrastate routing.  They need to have                                                                
the operational flexibility, if they have a mechanical, to                                                                      
substitute another aircraft.  The result is they are continuing to                                                              
operate more and more aircraft in Alaska, because they are                                                                      
acquiring more aircraft.  On the other hand, the actual number of                                                               
aircraft they operate on a given day has been about 16 - 18 to                                                                  
maybe 20, depending on which particular day of the year it is.                                                                  
That hasn't changed a lot, although during the summer they operate                                                              
more aircraft.  The intrastate routing doesn't go up as much as the                                                             
interstate routing does.                                                                                                        
                                                                                                                                
Their major competitors that serve Alaska don't really operate                                                                  
intrastate.  So they don't obtain liquor licenses and he thought                                                                
they avoided serving liquor on the ground and just serve in the air                                                             
and escape licensing completely.  There is a little competitive                                                                 
disadvantage at this point.                                                                                                     
                                                                                                                                
He felt some relief would be if they obtained a liquor license for                                                              
the company and had gone through all the application process, they                                                              
should be able to license each additional aircraft by paying a fee.                                                             
They hoped to provide the State with a reasonable amount of money                                                               
to cover the administrative duties of the Board and to recognize                                                                
their intrastate operations in Alaska where licenses are necessary.                                                             
Secondly, they wanted to keep the costs to the company down so that                                                             
as they continue to add aircraft and enhance their fleet, they can                                                              
comply and continue to offer alcoholic beverage service on                                                                      
intrastate portions of their flights without being concerned that                                                               
this is going to cost them a great deal of money.                                                                               
                                                                                                                                
CHAIRMAN MACKIE asked where the first 10 licenses came from in                                                                  
section 2 and he asked if it's more like 16 - 18.                                                                               
                                                                                                                                
MR. BERTRAM replied that idea behind the number was to pick one                                                                 
that was high enough so Alaska Airlines would not be depriving the                                                              
State of any revenue for anyone else.  They thought they had more                                                               
licenses than anyone else by quite a number and found that there                                                                
wasn't another licensee that has more than 10 vehicles licensed.                                                                
They are picking a number that is high enough to avoid providing a                                                              
benefit to anyone else.                                                                                                         
                                                                                                                                
CHAIRMAN MACKIE stated he thought they made a good case for                                                                     
fairness and streamlining the ABC Board's activities.                                                                           
                                                                                                                                
SENATOR KELLY moved to pass SB 280 from committee with individual                                                               
recommendations.  There were no objections and it was so ordered.                                                               
             SB 297-BOARD OF CHIROPRACTIC EXAMINERS                                                                             
                                                                                                                                
                                                                                                                                
CHAIRMAN MACKIE announced SB 297 to be up for consideration.                                                                    
                                                                                                                                
MS. SHARON CLARK, Aide to Senator Miller, said this bill was                                                                    
introduced on behalf of the chiropractors.  She said that SB 297 is                                                             
an act relating to licensing of chiropractors.  It amends the                                                                   
licensing statute for Alaskan chiropractors.                                                                                    
                                                                                                                                
Section 1 allows for a temporary permit to practice chiropractic in                                                             
Alaska. It is for fifty days initially and may be extended by the                                                               
Board of Chiropractic Examiners.  It is subject to the same terms                                                               
and conditions of a regular license.                                                                                            
                                                                                                                                
This section also provides for a licensee who does not practice in                                                              
the State to hold an inactive license.  It also provides for a                                                                  
retired licensee.  A person holding a retired license may not                                                                   
practice chiropractic in the State.  They may apply for an active                                                               
license subject to terms and conditions set by the Board.                                                                       
                                                                                                                                
Section 2 provides new reasons why the Board of Chiropractic                                                                    
Examiners may refuse to issue a license in the State.  These                                                                    
include a conviction of a felony or other crime that would affect                                                               
the person's ability to practice competently and safely.                                                                        
Commission of crime involving the unlawful procurement, sales,                                                                  
prescription or dispensing of drugs, and attempting to practice                                                                 
after becoming unfit due to an infectious or contagious disease.                                                                
                                                                                                                                
Ms. Mary Vaele, American Physical Therapy Association, said the                                                                 
bill is fine.  They don't have any complaints with registering                                                                  
local chiropractors, but have one question on the first page on                                                                 
lines 21 - 22 and the use of the term "physiotherapy."  She                                                                     
explained that many other English speaking countries a                                                                          
physiotherapist is a physical therapist.  So they would like to                                                                 
keep that terminology out of the chiropractic legislation.                                                                      
                                                                                                                                
She said that she understands that this is an optional exam for the                                                             
chiropractors.  She doesn't think it is required for the rest of                                                                
the chiropractors in the State.                                                                                                 
                                                                                                                                
MS. CATHERINE REARDON, Director, Division of Occupational                                                                       
Licensing, explained the exams are set in regulation (under                                                                     
statute) for the regular full licenses.  Therefore, the Board has                                                               
the authority to chose the exam.  There are five parts to the                                                                   
chiropractic exam; the physical therapy exam is one of those parts.                                                             
                                                                                                                                
The current regulations on exams do require for people who passed                                                               
after a certain date..."12 AC16.037: An applicant must pass each                                                                
subject of the following parts of the examination:  the National                                                                
Board of Chiropractic Examiners and the elected physiotherapy                                                                   
examination."  Her understanding is that it is not regulation that                                                              
they are requiring that physiotherapy examination section now.  It                                                              
doesn't appear in the statute because that just says, "The Board                                                                
can adopt by regulation...."                                                                                                    
                                                                                                                                
CHAIRMAN MACKIE asked if that should be in the proposed statute or                                                              
not.                                                                                                                            
                                                                                                                                
MS. REARDON said her personal opinion was that it should appear as                                                              
it appears in the bill.                                                                                                         
                                                                                                                                
SENATOR KELLY asked what physiotherapy was.  He asked if it was                                                                 
addressed in statute.                                                                                                           
                                                                                                                                
MS. REARDON responded that it is addressed in statute in that the                                                               
definition of the practice of chiropractic in AS 08.20.900 includes                                                             
the employment of physiological therapeutic procedures preparatory                                                              
to and complimentary with the correction of the subluction.  A                                                                  
further definition defines physiological therapeutic goes on for                                                                
several paragraphs.  She said it looks like it is the pushing,                                                                  
massaging, and maneuvering of someone to result in the subluction,                                                              
which is out of alignment, being corrected.                                                                                     
                                                                                                                                
SENATOR KELLY asked Ms. Veale if she has training in this area.                                                                 
                                                                                                                                
MS. VEALE said yes and added that her definition of physical                                                                    
therapy is different from a chiropractic definition of physical                                                                 
therapy.  It's semantics, but the terminology concerns her.                                                                     
                                                                                                                                
Number 2306                                                                                                                     
                                                                                                                                
DR. LORAN MORGAN, President, Chiropractic Society, said there is                                                                
concern with the use of the word "physiotherapy."  In AS 08.20.120                                                              
the term "physiotherapy" is used by the National Board of                                                                       
Chiropractic Examiners as the name of the test.  To be synonymous                                                               
across the board, they use the same terminology so when someone                                                                 
from Washington D.C., for instance, comes to Alaska and takes the                                                               
test, they know what exact test they need to take.  It's being                                                                  
consistent with the Board of Chiropractic Examiners terminology.                                                                
                                                                                                                                
He said it is now in Alaska statutes as a National Board of                                                                     
Examiners requirement - 12AAC16.037.                                                                                            
                                                                                                                                
CHAIRMAN MACKIE asked him if he supports the bill.                                                                              
                                                                                                                                
DR. MORGAN said yes.                                                                                                            
                                                                                                                                
CHAIRMAN MACKIE asked Ms. Clark if the proposed CS in their packet                                                              
was the one that Senator Miller was offering.                                                                                   
                                                                                                                                
MS. CLARK responded that it is the CS that came about this morning                                                              
on behalf of the Department.  She said that Senator Miller has no                                                               
problem with it.                                                                                                                
                                                                                                                                
TAPE 00-13, SIDE B                                                                                                              
Number 2300                                                                                                                     
                                                                                                                                
MR. DAVE GRAY, Aide to Senate Labor and Commerce, informed the                                                                  
Committee that a letter from Catherine Reardon suggested "clean-up"                                                             
language.  There was also a letter from the Attorney General                                                                    
suggesting taking out one phrase.  The CS deals with those concerns                                                             
which seemed legitimate.                                                                                                        
                                                                                                                                
SENATOR LEMAN moved to adopt the CS version G/Lauterbach4/4. There                                                              
were no objections and it was so ordered.                                                                                       
                                                                                                                                
MS. KAREN GRAFTON, President, Alaska Physical Therapy Association,                                                              
said one of their main concerns is line 21 which says                                                                           
"physiotherapy examination."  In April 1999, the State of Alaska                                                                
Physical Therapy Board and Occupational Therapy Board resolved that                                                             
the Board declared its unanimous opinion that physical therapy and                                                              
physiotherapy were identical in meaning and that physical therapist                                                             
and physiotherapist are identical in meaning.                                                                                   
                                                                                                                                
To name an exam "physiotherapy examination" within the chiropractic                                                             
statutes opens up the door to confusion for the public.  Worldwide,                                                             
physiotherapy is physical therapy.  The United State is the only                                                                
country where they are titled physical therapists.  Austria,                                                                    
Australia, New Zealand, Germany, and Italy are all                                                                              
physiotherapists.  She asked that the word "physiotherapy" be                                                                   
removed.                                                                                                                        
                                                                                                                                
In addition, AS 18.20.120, qualifications for a license, says "to                                                               
have completed the exam by the National Board of Chiropractors".                                                                
Her concern is that the locumpentum section is different than the                                                               
permanent licensure section.  She asked that the word                                                                           
"physiotherapy" be removed from line 21.                                                                                        
                                                                                                                                
SENATOR LEMAN noted that it was line 23 on the current version.                                                                 
                                                                                                                                
SENATOR KELLY commented that they were getting caught up in                                                                     
semantics and asked if this door hadn't been open for years                                                                     
already.  Haven't we been referring the physiotherapy examinations                                                              
for several years in statute.                                                                                                   
                                                                                                                                
CHAIRMAN MACKIE responded that was what the Department tells them.                                                              
                                                                                                                                
SENATOR KELLY asked Ms. Reardon if this wasn't just a status quo.                                                               
                                                                                                                                
MS. REARDON said it wasn't.                                                                                                     
                                                                                                                                
MS. GRAFTON responded that she didn't see the word "physiotherapy                                                               
examination" in the Chiropractic Practice Act.  Currently, in her                                                               
book page 3, says "the exam from the National Board of                                                                          
Chiropractors" which she has no problem with.  She asked if the                                                                 
National Association changes the name of their exam, are they going                                                             
to have to reopen the Practice Act to retitle the exam.                                                                         
                                                                                                                                
MS. REARDON responded that was what the previous witness said about                                                             
the standard license - "the exam of the National Association in                                                                 
regulation".  So the word does not appear in statute, but it                                                                    
appears in regulations.  But sprinkled through the actual statute,                                                              
there are references to physiologic therapy.  All that they achieve                                                             
by removing this reference, is leaving the other four references to                                                             
physiological therapy that are in the core definition of what is                                                                
chiropractic.  It doesn't fully resolve the issue.                                                                              
                                                                                                                                
Also, if the committee chose to eliminate the term in this bill,                                                                
she asked that they not take out the exam, because she thought the                                                              
committee would want them to pass the exam.  She supported saying,                                                              
"the exams identified by the Board in regulations."                                                                             
                                                                                                                                
SENATOR KELLY asked how long regulations have required passing a                                                                
physiotherapy exam.                                                                                                             
                                                                                                                                
MS. REARDON replied she thought that was relatively new, but the                                                                
other references in statute have been there for years.                                                                          
                                                                                                                                
MS. GRAFTON inserted that they have no problem with physiologic                                                                 
therapeutics as written in the current  Act.  They have a problem                                                               
with the term "physiotherapy" which our State Board has stated and                                                              
resolved is the same thing as physical therapy.                                                                                 
                                                                                                                                
SENATOR LEMAN said the examination of the National Board of                                                                     
Chiropractic Examiners probably has within it as physiologic                                                                    
therapeutics.  The next section says, "...has passed to the                                                                     
satisfaction of the Board parts 1 and 2 of the examination."  He                                                                
asked whether a part of that examination deals with physiological                                                               
therapeutics and, if so, could that part of the examination be                                                                  
referenced.                                                                                                                     
                                                                                                                                
MS. REARDON explained the problem is that part is called the                                                                    
physiotherapy examination.  That is why it is capitalized on line                                                               
23.  There are five parts of the National Board.  Part 1 covers                                                                 
basic science subjects, part 2 covers clinical subjects, part 3 is                                                              
the written competency exam, part 4 is the practical exam, and the                                                              
physiotherapy exam.                                                                                                             
                                                                                                                                
SENATOR LEMAN asked if part 5 is the physiotherapy exam.                                                                        
                                                                                                                                
MS. REARDON replied the information she has does not refer to the                                                               
physiotherapy exam as a part.  Again, that is why it is capitalized                                                             
because they do not have a good name for it.                                                                                    
                                                                                                                                
SENATOR LEMAN asked what she thought of suggesting to them that                                                                 
they call it part 5.                                                                                                            
                                                                                                                                
SENATOR TIM KELLY asked who had the name first, the chiropractors                                                               
or the physical therapists.  He said he thought the chiropractors                                                               
did, and that seems to be the problem.                                                                                          
                                                                                                                                
CHAIRMAN MACKIE asked if it changes the scope of the work anyone                                                                
does.                                                                                                                           
                                                                                                                                
MS. REARDON said it does not but the very important concept that                                                                
anyone else can call him/herself a physical therapist or                                                                        
physiotherapist still holds.  This bill does not allow                                                                          
chiropractors to call themselves physiotherapists.                                                                              
                                                                                                                                
CHAIRMAN MACKIE asked if that issue was addressed a few years ago.                                                              
                                                                                                                                
MS. REARDON said she thinks that was the origin of the Alaska                                                                   
Boards of Physical Therapy and Occupational Therapy's positions but                                                             
those terms are synonymous to make sure nobody could call                                                                       
themselves a physiotherapist who was not a licensed physical                                                                    
therapist.  She pointed out that is important to the Board.                                                                     
                                                                                                                                
MS. BERNADETTE GILLET, representing the Providence Medical Center,                                                              
made the following comment. "Just speaking in terms of differences                                                              
between physiotherapy - physical therapy, that we have resolved                                                                 
that two are synonymous and, in speaking directly about that                                                                    
statement, it says the physiotherapy examination, as Karen just                                                                 
discussed, can be congruent with our language that describes about                                                              
our profession of physical therapy.  You ask who came first - the                                                               
chiropractor or the physical therapist - but PT's came up in 1926                                                               
with the term 'physical therapist'.  Chiropractic medicine started                                                              
in 1895 with the 'chiropractor.'  Those two differences split us                                                                
and it maintains that with the way that this is stated.  That's why                                                             
we prefer to have this wording struck from that line."                                                                          
                                                                                                                                
CHAIRMAN MACKIE asked the two groups if they could get together to                                                              
resolve the differences.                                                                                                        
                                                                                                                                
MS. GILLET replied yes.                                                                                                         
                                                                                                                                
SENATOR TIM KELLY asked if he was referring to the physical                                                                     
therapists and the chiropractors.                                                                                               
                                                                                                                                
CHAIRMAN MACKIE said yes.  He didn't think anyone wanted to change                                                              
the scope of what they do, but they need to have consistency in our                                                             
statutes.                                                                                                                       
                                                                                                                                
Number 2006                                                                                                                     
                                                                                                                                
MR. GEORGE SALMON, Fairbanks Physical Therapist, agreed with Ms.                                                                
Grafton's testimony that "physiotherapy" wording be deleted.  He                                                                
said there is a lot of confusion in the public about what physical                                                              
therapists and chiropractors do.  It opens the door for the public                                                              
to start thinking of chiropractors and physical therapists.  He                                                                 
thought they should call that part of the test "part 5."                                                                        
                                                                                                                                
MS. CHERYL SACKETT, Fairbanks, agreed with Mr. Salmon and the need                                                              
to remove "physiotherapy" and label the exam "part 5."                                                                          
                                                                                                                                
SENATOR LEMAN said he had additional concerns.  One on page 2,                                                                  
lines 4 - 13, the disqualification section, that they should                                                                    
consider being consistent throughout with health care providers as                                                              
they update statutes.  They have similar standards for dentistry,                                                               
but he likes the wording in this bill better.  It's a little                                                                    
shorter and has less repetition.                                                                                                
                                                                                                                                
His other concern was on page 3, line 21 where it appears to him                                                                
that by deleting "after a hearing" the Board may impose a                                                                       
disciplinary sanction on a person without having a hearing.  But in                                                             
AS 18.08.075 it says they can't do it without a hearing.  He                                                                    
thought it should be written so that the Board could refuse to                                                                  
issue a license without having to have a hearing.  He suggested,                                                                
"The Board may refuse to issue a license under this chapter, and                                                                
after a hearing, impose a disciplinary sanction..."                                                                             
                                                                                                                                
MS. REARDON responded that what Senator Leman said was fine.  It's                                                              
correct that the reason they are taking out "after a hearing" is                                                                
because they want the Board to be able to deny without having a                                                                 
hearing first.  It was their intention to comply with the                                                                       
Administrative Procedures Act which does apply to this Board's                                                                  
activities.  It requires a hearing before taking disciplinary                                                                   
action.  Senator Leman's suggestion is fine with her.                                                                           
                                                                                                                                
CHAIRMAN MACKIE asked if that was a suggestion of the Attorney                                                                  
General.                                                                                                                        
                                                                                                                                
MS. REARDON answered yes.  She added that this part of the bill is                                                              
actually what the Division finds is the most important part.  This                                                              
increases public protection because it says the Board can deny                                                                  
licenses if you have done something wrong.  As it is now, although                                                              
the title of the section includes refuse to issue a license, they                                                               
found the substance of this section would not allow them to deny                                                                
licenses for very legitimate reasons.                                                                                           
                                                                                                                                
CHAIRMAN MACKIE said without the drafter there, they couldn't                                                                   
explain the language.                                                                                                           
                                                                                                                                
MS. REARDON said probably what Senator Leman is referring to is the                                                             
summary suspension option for discipline if there is a clear and                                                                
immediate threat to public health.                                                                                              
                                                                                                                                
CHAIRMAN MACKIE asked her to have her legal people look at Senator                                                              
Leman's wording.  Ms. Reardon indicated her agreement.  He said the                                                             
only issue remaining is the physical therapist's concern with the                                                               
language.  Senator Leman suggested using the wording "part 5" and                                                               
eliminating "physiotherapy examination."  He asked for comments                                                                 
from the Department.                                                                                                            
                                                                                                                                
MS. REARDON replied that would be a wonderful solution except that                                                              
it's not called "part 5" by the National Board, so that wording                                                                 
would not actually have a meaning.                                                                                              
                                                                                                                                
SENATOR LEMAN corrected her saying that he suggested part 5 in a                                                                
note to the chairman and then put (physiotherapy examination).                                                                  
That really doesn't do much more than give a nod to the                                                                         
physiotherapist that their's is a separate entity different from                                                                
chiropractors and not confuse the public.                                                                                       
                                                                                                                                
CHAIRMAN MACKIE asked what Senator Miller's thoughts were on this.                                                              
                                                                                                                                
MS. CLARK replied he agreed with what the chiropractors want and                                                                
whatever Occupational Licensing thinks should be in statute.  He is                                                             
in agreement with the CS.                                                                                                       
                                                                                                                                
SENATOR MACKIE asked them to work together and resolve the issue                                                                
when it goes to the floor.                                                                                                      
                                                                                                                                
DR. MORGAN inserted that the Chiropractic Board has already said                                                                
that physical therapy, physiotherapy, and physiological therapeutic                                                             
are all synonymous terms.  He thought the physical therapists had                                                               
said that as well.  It is a name given by the National Board of                                                                 
Chiropractors, not of physical therapists, to fulfill that basic                                                                
requirement in the State.  If the term changes, he didn't know how                                                              
to change it on a national level.                                                                                               
                                                                                                                                
SENATOR MACKIE said there is obviously a conflict and that's why he                                                             
has asked people to get together and work it out.  Otherwise it                                                                 
will most likely remain like the sponsor has it.                                                                                
                                                                                                                                
SENATOR KELLY said he was sympathetic to the arguments of the                                                                   
physical therapists, but he thought that was irrelevant to the bill                                                             
in front of them.  They will continue to struggle through that                                                                  
until they can reach an agreement.                                                                                              
                                                                                                                                
SENATOR KELLY moved to pass CSSB 297 (L&C) with individual                                                                      
recommendations. There were no objections and it was so ordered.                                                                
                                                                                                                                
CHAIRMAN MACKIE adjourned the meeting at 2:50 p.m.                                                                              

Document Name Date/Time Subjects