02/07/2013 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB16 | |
| SB38 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 16 | TELECONFERENCED | |
| *+ | SB 38 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
February 7, 2013
1:30 p.m.
MEMBERS PRESENT
Senator Mike Dunleavy, Chair
Senator Peter Micciche, Vice Chair
Senator Donald Olson
Senator Bert Stedman
MEMBERS ABSENT
Senator Johnny Ellis
COMMITTEE CALENDAR
SENATE BILL NO. 16
"An Act relating to the Board of Registration for Architects,
Engineers, and Land Surveyors and to the Department of Commerce,
Community, and Economic Development."
- HEARD & HELD
SENATE BILL NO. 38
"An Act extending the termination date of the State Medical
Board; and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 16
SHORT TITLE: BD OF ARCHITECTS, ENGINEERS, SURVEYORS
SPONSOR(s): SENATOR(s) GIESSEL BY REQUEST
01/16/13 (S) READ THE FIRST TIME - REFERRALS
01/16/13 (S) L&C, FIN
01/24/13 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
01/24/13 (S) <Bill Hearing Postponed>
02/07/13 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 38
SHORT TITLE: EXTEND STATE MEDICAL BOARD
SPONSOR(s): SENATOR(s) OLSON
01/25/13 (S) READ THE FIRST TIME - REFERRALS
01/25/13 (S) L&C, FIN
02/07/13 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
SENATOR CATHY GIESSEL
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Sponsor of SB 16.
COLIN MAYNARD, licensed engineer
State Board of Registration for Architects, Engineers, and Land
Surveyors
Anchorage, AK
POSITION STATEMENT: Testified in support of SB 16.
DON HABEGER, Director
Division of Corporations, Business and Professional Licensing
Department of Commerce, Community and Economic Development
Anchorage, AK
POSITION STATEMENT: Provided information and answered questions
on SB 16 and SB 38.
DALE NELSON, registered professional civil engineer
Legislative Liaison Committee
Alaska Professional Design Council (APDC)
Anchorage, AK
POSITION STATEMENT: Testified in support of SB 16.
JANET MATHESON, registered professional architect
American Institute Architects Alaska Chapter (AIAAC)
Fairbanks, AK
POSITION STATEMENT: Testified in support of SB 16.
DAVID SCOTT, staff
Senator Donny Olson
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Introduced SB 38 on behalf of the sponsor.
KRIS CURTIS, legislative auditor
Division of Legislative Audit
Juneau, AK
POSITION STATEMENT: Testified on SB 38 to report the findings
and recommendations of the audit of the State Medical Board.
ED HALL, President/Chair
State Medical Board
Anchorage, AK
POSITION STATEMENT: Testified in support of SB 38.
ACTION NARRATIVE
1:30:40 PM
CHAIR MIKE DUNLEAVY called the Senate Labor and Commerce
Standing Committee meeting to order at 1:30 p.m. Present at the
call to order were Senators Stedman, Olson, Micciche, and Chair
Dunleavy.
SB 16-BD OF ARCHITECTS, ENGINEERS, SURVEYORS
1:30:53 PM
CHAIR DUNLEAVY announced the consideration of SB 16.
SENATOR CATHY GIESSEL, sponsor of SB 16, introduced SB 16
speaking to the following sponsor statement: [Original
punctuation provided.]
SB 16 revises statutes governing architects,
engineers, and land surveyors in Alaska, designating a
full-time investigator specifically for the State
Board of Registration for Architects, Engineers, and
Land Surveyors (AELS).
The AELS Board's mission, as defined in statute, is to
protect public health, safety and welfare by ensuring
that those entering the practices of architecture,
engineering, and land surveying meet minimum standards
of competency, and maintain those standards during
their practice, by requiring licensure to practice in
the state. The Board enforces the licensure and
competency requirements and responds to complaints
brought by the public.
Currently, the AELS Board shares one part-time
investigator with six other boards that oversee a
total of 18,095 licensees, of which 6,439 licensees
are under the AELS Board.
According to the board, because of the negative
economic conditions in various parts of the United
States, a significant number of corporations and
individuals are relocating to Alaska and many are
practicing without proper licensure or knowledge of
applicable statutes and regulations. In 2012 alone,
the AELS Board added 490 new licensees to its
oversight.
In addition to the already growing workload for the
part-time AELS Board investigator, pressure on the
investigator to spend time on the other six boards to
which he is also assigned is increasing. The
efficiency and effectiveness of the State's licensing
investigation process is further reduced by only
having a single shared investigator who must maintain
knowledge of the various statutes and regulations of
seven different boards.
SB 16 also removes the constraint that examinations
for licensure be written. With advancements in
technology, examinations are moving to an electronic
format which will further increase efficiency.
SB 16 will better equip the AELS Board to maintain
proper oversight of its licensees, thereby uphold the
reputation and integrity of the disciplines within its
purview, and ultimately ensure its ability to protect
public health, safety, and welfare.
SENATOR GIESSEL noted that in the last 18 months the AELS Board
opened 116 cases alleging unprofessional conduct, unlicensed
practice or violation of licensing regulations. She referenced
the fiscal note and reminded the committee that regulatory
boards have to be self-supporting. Therefore, the costs of
operation including per diem, travel expenses, and the
investigator, have to be covered by the licensees. The AELS
Board has some carry-forward funds to cover initial costs so
passage of the bill will not increase licensee fees this year.
Current license fees are $125 every two years and the estimated
increase, when enacted in two years, will be minimal as the
costs will be spread over those 6,439 licensees.
1:36:42 PM
SENATOR OLSON asked how she could justify adding two more state
employees when there is a push to reduce the state's budget.
SENATOR GIESSEL explained that while the bill talks about two
persons, one is currently employed as executive secretary and
the board already has a part-time investigator. All the costs
will be distributed among the licensees under the jurisdiction
of the various boards. This will not increase the state's
budget.
1:38:17 PM
SENATOR OLSON pointed out that the fiscal note reflects costs of
$115,500 in FY14 and $110,500 each year thereafter until FY19.
He asked if he was misreading the note.
SENATOR GIESSEL responded that the fiscal note includes costs
for supplies, one-time start up fees, and a computer but the
cost for personnel will be covered by boards. She deferred
technical questions to Mr. Habeger, the director of the Division
of Corporations, Business and Professional Licensing.
SENATOR MICCICHE how many individuals are licensed.
SENATOR GIESSEL replied there are slightly more than 6,400 in
the AELS Board. She added that 18,000 licensees right now are
covered by just one investigator.
SENATOR MICCICHE calculated that this would add approximately
$20 per person with much better service and less liability to
the department.
SENATOR GIESSEL agreed and added that it's for two years.
SENATOR OLSON asked how many violations the half-time
investigator had encountered and how many resulted in fines.
SENATOR GIESSEL replied that 116 cases were opened in the last
18 months.
1:40:22 PM
COLIN MAYNARD, licensed engineer representing the State Board of
Registration for Architects, Engineers, and Land Surveyors,
explained the conditions that led to the bill. About four or
five years ago there were two and one-half persons to
investigate cases for six boards. Through attrition that has
been reduced to the equivalent of one-sixth of one investigator
for the AELS Board. The workload is heavy; 13 cases have been
opened in the last quarter and the investigator now oversees
requirements for nine new engineering disciplines. With the
economic downturn in the Lower 48, unlicensed practices have
increased in the state but the workload generally keeps the
investigator attached to the Anchorage office with occasional
trips to the Mat-Su Valley and Kenai Peninsula. The positive
impact of having one investigator assigned to the AELS Board is
that all areas of the state will see investigations. He
highlighted that the cost of the investigator would be borne by
licensee fees and that he hadn't heard from any professional
societies that were unwilling to pay the additional $20 over two
years to ensure that licensing laws are enforced.
MR. MAYNARD said the bill also amends the statute to remove
reference to a "written examination" to reflect that
examinations are moving to electronic format. The architects
have not had a written examination for several years and the
fundamentals of engineering exam will be electronic starting in
April 2014. He noted that one person complained that he failed
the licensing test because he was not given the opportunity to
take a written test.
1:43:51 PM
DON HABEGER, Director, Division of Corporations, Business and
Professional Licensing, Department of Commerce, Community and
Economic Development (DCCED), offered to answer questions.
SENATOR OLSON asked how he justified the recurring six-digit
cost of the bill when state revenues were declining.
MR. HABEGER said the sponsor's testimony was correct; licensee
fees cover the cost of the services. By statute, the division is
required to annually review the programs and look at revenues
and expenses before adjusting the fees. He noted that the
correct terminology was fee-supported services.
SENATOR OLSON pointed out that the licensee fees would not cover
the [$115,500 first year cost and $110,500 out-year estimated
costs].
MR. HABEGER responded that the fees would be adjusted at the
next licensing cycle to capture the additional expenses.
SENATOR OLSON asked how many fines were levied compared to the
number of cases filed.
MR. HABEGER offered to follow up with the information.
1:47:36 PM
SENATOR OLSON asked if he would agree that adding an
investigator would increase the number of filings and add to the
costs that licensees would have to shoulder.
MR. HABEGER agreed and then noted that the line item for
"services" in the fiscal note anticipated additional
expenditures for expert witnesses and use of the Department of
Law. He established that the investigators are experts in the
statutes and regulations; they are not necessarily experts in
the subject matter.
SENATOR OLSON asked if he anticipated that more people would
fail the computerized tests.
MR. HABEGER explained that the AELS board belongs to a number of
national associations that develop tests with expertise from
various license practices across the nation. These national
tests, which are contracted through state boards, are tailored
for the specific jurisdiction. The tests are administered by
computer at designated testing sites.
SENATOR OLSON asked if someone in Nome could take the test at a
hub site.
MR. HABEGER offered to follow up with an answer.
SENATOR MICCICHE asked to have Mr. Maynard return to the witness
table to answer Senator Olson's questions.
1:51:21 PM
MR. MAYNARD explained that the AELS Board is a member of three
national licensing associations that write national tests for
engineers and surveyors, architects, and landscape architects.
These tests are given twice a year in Anchorage and Fairbanks at
secure testing sites. This will not change when all the tests
are computerized because there are too few registrants in other
locations. He confirmed that somebody from Nome who wanted to
take the test would have to go to either Anchorage or Fairbanks.
He reiterated that these are national tests and the computer
exam is not more difficult than the written exam, they're
written by the same people.
SENATOR OLSON asked for clarification that both written and
computerized tests were administered only in Anchorage or
Fairbanks.
MR. MAYNARD said yes.
1:53:22 PM
DALE NELSON, registered professional civil engineer, Legislative
Liaison Committee, Alaska Professional Design Council (APDC),
Anchorage, AK, testified in support of SB 16. He said this
legislation has been discussed in the committees and the APDC
newsletter. He confirmed that the members understand that
license fees would increase if this bill were to pass.
SENATOR OLSON asked how many of the 6,500 licensees were opposed
to this legislation.
MR. NELSON replied he had heard no opposition.
1:55:59 PM
JANET MATHESON, registered professional architect, American
Institute Architects Alaska Chapter (AIAAC), Fairbanks, AK,
testified in support of SB 16. She said AIAAC feels there is
need for a full-time investigator. People come to Alaska and
want comity registration only to find that they have to know
Arctic and seismic engineering. She highlighted that when
someone chooses to work outside their discipline there are
issues of public safety. Another problem is that outside firms
sometimes acquire projects in the state but do not have people
who are registered in Alaska. She continued that it's also a
problem that the investigator is only concentrating on the
Anchorage Bowl, which leaves other areas of the state without an
investigator. She maintained that Alaska should stay up to date
on its examinations, and pointed out that all the professional
architect tests were electronic.
1:58:06 PM
CHAIR DUNLEAVY announced that he would hold SB 16 in committee
and keep public testimony open.
SB 38-EXTEND STATE MEDICAL BOARD
1:58:22 PM
CHAIR DUNLEAVY announced the consideration of SB 38.
1:58:47 PM
DAVID SCOTT, staff to Senator Donny Olson, sponsor of SB 38,
said this bill extends the termination date of the State Medical
Board until June 30, 2020. This is an eight-member board
appointed by the governor and approved by the legislature. Five
members are physicians, one is a physician assistant, and two
are public members. This regulatory board licenses and regulates
osteopaths, paramedics, physicians, physician assistants, and
podiatrists.
He noted that, board president Ed Hall, a representative from
Legislative Budget and Audit, and Mr. Habeger from the commerce
department were available to answer questions.
2:00:04 PM
SENATOR MICCICHE noted that the fiscal note referenced both an
eight-member board and a five-member board. He asked which
number was correct.
MR. SCOTT answered that the statute says the board has eight
members. He deferred further explanation to Mr. Habeger who
prepared the fiscal note.
SENATOR OLSON clarified that the State Medical Board has eight
members.
SENATOR MICCICHE said the fiscal note should be corrected; the
analysis describes travel expenses and per diem for a five-
member board and staff.
2:01:40 PM
At ease
2:02:08 PM
SENATOR OLSON suggested that Mr. Harbinger could address Senator
Micciche's question.
SENATOR MICCICHE asked if State Medical Board members were paid.
MR. SCOTT answered no; they receive a travel and per diem
allowance.
2:03:18 PM
DON HABEGER, Director, Division of Corporations, Business and
Professional Licensing, Department of Commerce, Community and
Economic Development (DCCED), agreed to correct the error in the
fiscal note.
SENATOR MICCICHE asked if member costs in the $40,000 range were
typical, because it seemed high.
MR. HABEGER said the State Medical Board is unique from the
standpoint that it doesn't choose to centralize in one of the
major communities. The Medical Board twice a year meets in
Anchorage, Fairbanks, and Juneau and twice a year meets in rural
communities like Nome. He relayed that the only time he asked
the board to rethink their travel plans was when they asked to
go to Dutch Harbor.
2:05:25 PM
KRIS CURTIS, legislative auditor, Division of Legislative Audit,
informed the committee that the agency conducted a sunset audit
of the State Medical Board during 2012. The audit concluded that
the board was serving the public's interest by effectively
licensing and regulating osteopaths, paramedics, physicians,
physician assistants, and podiatrists, and recommended extending
the board's termination date to June 30, 2020. This is one year
less than the statutory maximum in recognition of a new finding
that the Division of Corporations, Business and Professional
Licensing (DCPBL) staff failed to review continuing medical
education requirements in accordance with regulation, which
require review of five percent of licensees during each biannual
licensing cycle. DCPBL reviewed only four percent of licensees
and the audit therefore recommended the division meet the
minimum required by regulation.
The audit also made two continuing recommendations to the board.
The first was associated with deficiencies in DCPBL's
investigative case management system. Key information was
missing such as priority codes, case open dates, and resolution
codes. She noted that DCPBL had taken steps to address the issue
by forming a task force to identify necessary corrective action.
The final ongoing recommendation was to implement procedures to
ensure reporting of board disciplinary actions to national data
banks within 30 days, in accordance with state and federal law.
The 2012 audit found improvement in overall reporting of
disciplinary actions, but timeliness continued to be an issue.
The Department of Commerce, Community and Economic Development
(DCCED) and State Medical Board concurred with all the
recommendations.
2:08:40 PM
SENATOR OLSON asked how Alaska's license renewal requirements
for physicians compared to other states.
MS. CURTIS said there were no findings on continuing education
but it had not been a problem in the past for the Medical Board.
She noted that some other boards had problems with their
continuing education not meeting national standards.
SENATOR OLSON commented that it was an issue that only four
percent of licensees were reviewed when regulation required five
percent.
MS. CURTIS clarified that it was a DCBPL staff issue, not a
Medical Board issue.
SENATOR OLSON asked if the audit found that the case management
deficiencies compromised patient care.
MS. CURTIS answered that the audit did not find any instance of
that.
SENATOR OLSON asked if the disciplinary actions were reported
after the 30-day deadline or if the national data banks failed
to post the reports in a timely manner.
MS. CURTIS replied that the audit found that DCBPL staff did not
submit the reports within the timeframe.
2:11:19 PM
ED HALL, President/Chair and physician assistant, State Medical
Board, Anchorage, AK, testified in support of SB 38 to extend
the sunset date of the State Medical Board to 2020.
SENATOR OLSON asked if he agreed with the seven-year extension
as opposed to the eight years allowed under statute.
MR. HALL responded that he agreed with the seven-year extension
in light of the findings in the sunset audit. He noted that the
executive administrator had primary oversight of reporting so
the board would be in compliance.
SENATOR OLSON thanked Mr. Hall and the other members of the
board for their service.
2:13:49 PM
CHAIR DUNLEAVY announced he would hold SB 38 and keep public
testimony open.
2:14:18 PM
There being no further business to come before the committee,
Chair Dunleavy adjourned the meeting at 2:14 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 16 - AELS Board Position Paper on Investigator - January 18, 2013.pdf |
SL&C 2/7/2013 1:30:00 PM |
SB 16 |
| SB 16 - Letter of Support - Burdett Lent.pdf |
SL&C 2/7/2013 1:30:00 PM |
SB 16 |
| SB 16 - Sectional Analysis.pdf |
SL&C 2/7/2013 1:30:00 PM |
SB 16 |
| SB 16 - Version U.pdf |
SL&C 2/7/2013 1:30:00 PM |
SB 16 |
| SB 38 - AS 08.64.PDF |
SL&C 2/7/2013 1:30:00 PM |
SB 38 |
| SB 38 - LB&A Sunset Review.PDF |
SL&C 2/7/2013 1:30:00 PM |
SB 38 |
| SB 38 - State Medical Board Fact Sheet.PDF |
SL&C 2/7/2013 1:30:00 PM |
SB 38 |
| SB 38 - State Medical Board Website.PDF |
SL&C 2/7/2013 1:30:00 PM |
SB 38 |
| SB 38.PDF |
SL&C 2/7/2013 1:30:00 PM |
SB 38 |
| SB038-DCCED-CBPL-02-01-13.pdf |
SL&C 2/7/2013 1:30:00 PM |
SB 38 |
| SB016-DCCED-CBPL-02-01-13.pdf |
SL&C 2/7/2013 1:30:00 PM |
SB 16 |
| SB 16 - Letter of Support - Harley Hightower.pdf |
SL&C 2/7/2013 1:30:00 PM |
SB 16 |
| SB 16 - Letter of Support - Richard Heieren.pdf |
SL&C 2/7/2013 1:30:00 PM |
SB 16 |
| SB 16 - Letter of Support - Richard Heieren.pdf |
SL&C 2/7/2013 1:30:00 PM |
SB 16 |