Legislature(2011 - 2012)BELTZ 105 (TSBldg)

02/24/2011 01:30 PM LABOR & COMMERCE

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Heard & Held
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
Moved SB 90 Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                       February 24, 2011                                                                                        
                           1:32 p.m.                                                                                            
MEMBERS PRESENT                                                                                                               
Senator Dennis Egan, Chair                                                                                                      
Senator Joe Paskvan, Vice Chair                                                                                                 
Senator Linda Menard                                                                                                            
Senator Bettye Davis                                                                                                            
Senator Cathy Giessel                                                                                                           
MEMBERS ABSENT                                                                                                                
All members present                                                                                                             
COMMITTEE CALENDAR                                                                                                            
SENATE BILL NO. 90                                                                                                              
"An Act classifying and setting a monthly salary for the                                                                        
executive secretary of the Board of Public Accountancy."                                                                        
     - MOVED SB 90 OUT OF COMMITTEE                                                                                             
SENATE BILL NO. 92                                                                                                              
"An Act relating to dental hygienists, dentists, dental                                                                         
assistants, dental hygiene, and dentistry."                                                                                     
     - HEARD AND HELD                                                                                                           
SENATE BILL NO. 68                                                                                                              
"An Act relating to the examinations, board, loans, records, and                                                                
lobbying contracts of the Alaska Commercial Fishing and                                                                         
Agriculture Bank; and providing for an effective date."                                                                         
     - HEARD AND HELD                                                                                                           
PREVIOUS COMMITTEE ACTION                                                                                                     
BILL: SB  90                                                                                                                  
SHORT TITLE: BOARD OF PUBLIC ACCOUNTANCY SECRETARY                                                                              
SPONSOR(s): LABOR & COMMERCE                                                                                                    
02/16/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/16/11       (S)       L&C, FIN                                                                                               
02/22/11       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/22/11       (S)       Heard & Held                                                                                           
02/22/11       (S)       MINUTE(L&C)                                                                                            
BILL: SB  92                                                                                                                  
SHORT TITLE: DENTISTS/DENTAL HYGIENISTS/ASSISTANTS                                                                              
SPONSOR(s): EGAN                                                                                                                
02/21/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/21/11       (S)       L&C, FIN                                                                                               
02/24/11       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
BILL: SB  68                                                                                                                  
SHORT TITLE: COMMERCIAL FISHING & AGRICULTURE BANK                                                                              
SPONSOR(s): COGHILL                                                                                                             
01/26/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/26/11       (S)       L&C, FIN                                                                                               
02/24/11       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
WITNESS REGISTER                                                                                                              
DANA OWEN                                                                                                                       
Staff to Senator Egan and the Senate Labor and Commerce                                                                         
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Presented the committee substitute (CS) for                                                               
SB 92.                                                                                                                          
DAVID LOGAN, Legislative Chair                                                                                                  
Alaska Dental Society                                                                                                           
POSITION STATEMENT: Supported SB 92.                                                                                          
GAIL WALDEN, member and officer                                                                                                 
Alaska State Dental Hygienists' Association                                                                                     
Wasilla, AK                                                                                                                     
POSITION STATEMENT: Supported SB 92.                                                                                          
DAVID EICHLER, President                                                                                                        
Alaska State Board of Dental Examiners                                                                                          
North Pole, AK                                                                                                                  
POSITION STATEMENT: Supported SB 92.                                                                                          
ALPHEUS BULLARD, Attorney                                                                                                       
Legislative Legal Services                                                                                                      
Legislative Affairs Agency                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Available for questions on SB 92.                                                                         
DON HABEGAR, Director                                                                                                           
Division of Corporations, Business and Professional Licensing                                                                   
Department of Commerce, Community and Economic Development                                                                      
POSITION STATEMENT: Commented on SB 90 and SB 92.                                                                             
SENATOR COGHILL                                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Sponsor of SB 68.                                                                                         
JOSH BANKS                                                                                                                      
Intern for Senator Coghill                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Presented a sectional analysis of SB 68.                                                                  
LEA KINGERT, President and CEO                                                                                                  
Alaska Commercial Fishing and Agriculture Bank (CFAB)                                                                           
POSITION STATEMENT: Supported SB 68.                                                                                          
NICKI NEAL, Director                                                                                                            
Division Personnel and Labor Relations                                                                                          
Department of Administration (DOA)                                                                                              
Juneau, AK                                                                                                                      
POSITION STATEMENT: Commented on SB 90.                                                                                       
ACTION NARRATIVE                                                                                                              
1:32:12 PM                                                                                                                    
CHAIR DENNIS EGAN called the Senate Labor and Commerce Standing                                                               
Committee meeting to order at 1:32 p.m. Present at the call to                                                                  
order were Senators Giessel, Paskvan, Davis, and Chair Egan.                                                                    
1:32:46 PM                                                                                                                    
          SB  90-BOARD OF PUBLIC ACCOUNTANCY SECRETARY                                                                      
CHAIR EGAN announced SB 90 to be up for consideration.                                                                          
SENATOR GIESSEL said she didn't have her bill packet and had                                                                    
CHAIR EGAN delayed the hearing.                                                                                                 
1:34:04 PM                                                                                                                    
          SB  92-DENTISTS/DENTAL HYGIENISTS/ASSISTANTS                                                                      
CHAIR EGAN announced SB 92 to be next up for consideration.                                                                     
DANA  OWEN,  Staff  to  Senator  Egan,  presented  the  committee                                                               
substitute (CS) for  SB 92. He said this CS  came from the Dental                                                               
Board and contains highly technical  issues that have accumulated                                                               
over a  number of years.  The bill  was divided into  two pieces;                                                               
one that  extends the dental board  for eight years and  that had                                                               
passed, and SB 92 which contains the issues left over.                                                                          
1:36:31 PM                                                                                                                    
SENATOR MENARD joined the committee.                                                                                            
SENATOR DAVIS  moved to adopt CSSB  92(L&C), labeled 27-LS0403\I,                                                               
Bullard, as the working draft.                                                                                                  
SENATOR MENARD objected for discussion purposes.                                                                                
SENATOR  DAVIS asked  for  a walk-through  and  then a  sectional                                                               
1:38:24 PM                                                                                                                    
DAVID LOGAN,  Legislative Chair,  Alaska Dental Society,  said SB                                                               
92  had   input  from  all  major   stakeholders  (the  Hygienist                                                               
Association, the  Dental Association,  and both  a dentist  and a                                                               
hygiene member  from their  boards). The  overarching legislation                                                               
is  what  controls  the day-to-day  activities,  the  limits  and                                                               
licensure of  the dentists  and dental  hygienists in  Alaska; it                                                               
also provides the  basis for how the Board  of Dentistry conducts                                                               
its business.  It has been  about 20 years since  any substantial                                                               
review of dental statutes has  taken place. The language in those                                                               
20 years  has become antiquated  and the materials,  methods, and                                                               
terminology  have changed  - as  one  would expect  in a  vibrant                                                               
profession.  The  changes  aren't  substantial,  mostly  language                                                               
updates. New features are:                                                                                                      
 -Moved from having a part-time to a full-time investigator.                                                                    
 -Inserted  clarifying  language   so  that  students  undergoing                                                               
training in Alaska can do so legally.                                                                                           
 -Redefined what  ownership of  a dental  practice means  and who                                                               
can own  one. They hadn't  had a mechanism  over the years  for a                                                               
surviving  spouse to  actually  own a  dental  practice during  a                                                               
transitional period and now they have one.                                                                                      
SENATOR  GIESSEL said  she was  curious about  section 22,  which                                                               
states the department  shall employ a person  as an investigator.                                                               
She thought  it was  a responsibility of  the division  to assign                                                               
MR. LOGAN  responded that they  really want  to have a  full time                                                               
investigator  for the  board.  The reason  is  because cases  are                                                               
starting to  back up, and  he thought several other  boards would                                                               
be making the  same request.  Somebody has to  do the triage when                                                               
you have a  limited number of investigators and in  this case the                                                               
board  is self  funded through  licensing fees  and is  more than                                                               
happy to  make those payments. What  they are not happy  about is                                                               
the length of time it takes to bring a case to conclusion.                                                                      
SENATOR MENARD asked if the board  would have to raise their dues                                                               
to cover a full-time investigator.                                                                                              
MR. LOGAN answered yes.                                                                                                         
SENATOR MENARD  said she  also appreciated  giving the  spouse 24                                                               
months to  get a licensed dentist  should there be a  death. This                                                               
was a considerable problem in her  area when there was a terrible                                                               
plane accident.  The dentist  left, then the  spouse came  in and                                                               
she did  not live in Alaska.  It took many years  to resolve. She                                                               
asked him  if board  members were okay  with a  non-dentist being                                                               
MR. LOGAN answered under current  statute anyone on the board can                                                               
serve as president: a dentist, a hygienist or a public member.                                                                  
SENATOR MENARD asked if other states do it differently.                                                                         
MR. LOGAN answered  that most states have an  open quorum; anyone                                                               
who  serves on  the  board can  serve as  an  officer there.  Two                                                               
states restrict serving as president to dentists.                                                                               
SENATOR  GIESSEL  asked  if  requiring  the  president  to  be  a                                                               
licensed dentist or  hygienist is what language in  section 20 on                                                               
page 10 means.                                                                                                                  
SENATOR MENARD stated that got changed.                                                                                         
MR. LOGAN said he strongly supported that language.                                                                             
1:49:09 PM                                                                                                                    
GAIL WALDEN, member and officer,  Alaska State Dental Hygienists'                                                               
Association,  Wasilla,  supported  SB 92.  Several  statutes  are                                                               
inaccurate and don't represent  existing practice or terminology.                                                               
Ultimately  one  of  their  goals  is  to  maintain  the  highest                                                               
standards for excellent care to Alaskans.                                                                                       
1:52:03 PM                                                                                                                    
DAVID   EICHLER,  President,   Alaska  State   Board  of   Dental                                                               
Examiners,  North Pole,  explained that  the Dental  Practice Act                                                               
was  in great  need  of reform  and SB  92  is the  collaborative                                                               
product before them today. He  said their investigations take way                                                               
too long,  but hopefully the  new director will get  that cleaned                                                               
up  with the  tools provided  in this  statute. Currently  he has                                                               
cases as much as seven years  old that have not had an accusation                                                               
filed yet,  and letting a case  get that stale has  the potential                                                               
of allowing someone to practice who shouldn't.                                                                                  
1:54:12 PM                                                                                                                    
ALPHEUS BULLARD, Legislative  Legal Services, Legislative Affairs                                                               
Agency,  Alaska  State Legislature,  said  he  was available  for                                                               
MR. OWEN moved on to the sectional analysis.                                                                                    
     Section  1:   removes  a  requirement  that   a  person                                                                    
     practicing  dental  hygiene  or   who  is  offering  to                                                                    
     practice   dental   hygiene   must   have   a   current                                                                    
     certificate of registration.                                                                                               
     Section  2:  establishes the  qualifications  necessary                                                                    
     for licensure as a dental hygienist.                                                                                       
     Section 3:  amends the  qualifications necessary  for a                                                                    
     dental hygienist to be licensed by credentials.                                                                            
     Section   4:  edits   the   dental  hygiene   licensing                                                                    
     provisions  to provide  that successful  applicants for                                                                    
     licensure will no longer be  registered by the Board of                                                                    
     Dental Examiners.                                                                                                          
     Sections  5-6: conform  the  "renewal  of license"  and                                                                    
     "lapse and reinstatement of  license" provisions to the                                                                    
     bill's  removal  of  the registration  requirement  for                                                                    
     dental hygienists.                                                                                                         
     Section 7: allows a dental  hygienist who has completed                                                                    
     a course offered by or  under the auspices of a program                                                                    
     accredited  by the  Commission on  Dental Accreditation                                                                    
     of the American Dental  Association or other equivalent                                                                    
     course  or program  to receive  a restorative  function                                                                    
     endorsement from the board.                                                                                                
     Section 8:  changes the levels of  supervision required                                                                    
     for a dental hygiene  student performing dental hygiene                                                                    
     procedures.  Makes   the  section  applicable   to  all                                                                    
     students enrolled in dental hygiene programs.                                                                              
     Sections 9-11: changes the  permitted scope of practice                                                                    
     for  a dental  hygienist and  clarifies what  practices                                                                    
     and  procedures  may  not  be  delegated  to  a  dental                                                                    
     hygienist by a dentist.                                                                                                    
     Section 12:  clarifies what practices and  procedures a                                                                    
     dental hygienist  who has entered into  a collaborative                                                                    
     agreement  with  a dentist  may  be  authorized by  the                                                                    
     dentist to perform.                                                                                                        
     Section 13: makes stylistic changes.                                                                                       
     Section  14: permits  the board  to  sanction a  dental                                                                    
     hygienist who  used or knowingly cooperated  in deceit,                                                                    
     fraud,  or intentional  misrepresentation  to obtain  a                                                                    
     certificate  of   endorsement  and  amends   the  other                                                                    
     grounds for discipline, suspension,  or revocation of a                                                                    
     dental hygienist's license.                                                                                                
     Section 15: gives  the board the authority  to impose a                                                                    
     civil  fine of  up to  $25,000  for a  violation of  AS                                                                    
     08.32 or a regulation adopted under the chapter.                                                                           
1:58:17 PM                                                                                                                    
     Section  16: amends  the list  of dental  hygienists to                                                                    
     whom the provisions of AS 08.32 do not apply.                                                                              
     Section 17:  provides new definitions applicable  to AS                                                                    
     08.32  for  "licensed  dental hygienist"  and  licensed                                                                    
     Section 18: adds a qualification  for the public member                                                                    
     of the board.                                                                                                              
     Section 21: amends the powers of the board.                                                                                
     Section  22:  requires   the  Department  of  Commerce,                                                                    
     Community  and   Economic  Development  to   employ  an                                                                    
     investigator for the board.                                                                                                
     Section 23:  requires the board to  establish standards                                                                    
     for  dental  radiological  equipment that  comply  with                                                                    
     applicable federal  law. Permits the board  to charge a                                                                    
     fee  for   equipment  registered  under   the  section.                                                                    
     Removes  a requirement  that inspections  of radiologic                                                                    
     equipment  be  performed  by   a  person  with  certain                                                                    
     Section 24:  requires the board to  maintain a registry                                                                    
     of persons  licensed as  dentists or  dental hygienists                                                                    
     and  persons  certified  as dental  assistants,  and  a                                                                    
     registry  of licenses,  certificates, and  endorsements                                                                    
     revoked by the board.                                                                                                      
     Section 25:  edits the  dentist licensing  provision to                                                                    
     provide that  successful applicants for a  license will                                                                    
     no longer be registered by the  board (see sec. 4 for a                                                                    
     parallel provision applicable to dental hygienists).                                                                       
     Section 26: amends the qualifications  for a license to                                                                    
     practice dentistry in the state.                                                                                           
     Section 27:  requires that  an applicant  for licensure                                                                    
     as  a dentist  must  be interviewed  in  person by  the                                                                    
     Sections 28-29:  amends what is necessary  for a dental                                                                    
     hygienist to be licensed by credentials.                                                                                   
     Section 30:  permits all  persons enrolled  as students                                                                    
     in an accredited school of  dentistry to perform dental                                                                    
     procedures without a license  if certain conditions are                                                                    
     Section  31:  conforms  the "renewal  of  registration"                                                                    
     provisions to  the bill's  removal of  the registration                                                                    
     requirements for dentists.                                                                                                 
2:00:32 PM                                                                                                                    
     Section 32:  provides that a  dentist who does  not pay                                                                    
     the   license  renewal   fee  forfeits   the  dentist's                                                                    
     license. Permits the board to  reinstate a license upon                                                                    
     certain conditions.                                                                                                        
     Section   33:  amends   the  grounds   for  discipline,                                                                    
     suspension,  or revocation  of  a  license to  practice                                                                    
     Section  34:   permits  a  dental  assistant   who  has                                                                    
     completed a course offered by  or under the auspices of                                                                    
     a  program  accredited  by  the  Commission  on  Dental                                                                    
     Accreditation  of the  American  Dental Association  or                                                                    
     other  equivalent  course  or   program  to  receive  a                                                                    
     restorative function endorsement from the board.                                                                           
     Section  35:  adds  a new  provision  allowing  persons                                                                    
     enrolled in  a program  or course  of study  to perform                                                                    
     dental assisting  procedures as part of  that course of                                                                    
     study  or  program  without a  certificate  if  certain                                                                    
     conditions are met.                                                                                                        
     Section 36:  adds a new  section that provides  who may                                                                    
     own, operate,  or maintain  a dental  practice, office,                                                                    
     or clinic.                                                                                                                 
     Section 37:  provides new definitions applicable  to AS                                                                    
     08.36  for  "certified   dental  assistant,"  "licensed                                                                    
     dental hygienist," and "licensed dentist."                                                                                 
     Section   38:   repealers  AS   08.32.020,   08.32.035,                                                                    
     08.32.040, 08.32.060,  08.32.097, 08.32.100, 08.32.120,                                                                    
     08.32.130,      08.32.190(2);     AS      08.36.075(b),                                                                    
     08.36.075(c),  08.36.075(d),  08.36.075(e),  08.36.114.                                                                    
     08.36.230, 08.36.244,  08.36.246, 08.36.247, 08.36.248,                                                                    
     08.36.260,  08.36.271, 08.36.290,  08.36.350(a)(3), and                                                                    
     Section  39:  instructs  the  revisor  of  statutes  to                                                                    
     change the catch line of AS 08.36.250.                                                                                     
2:02:22 PM                                                                                                                    
SENATOR MENARD said in the past a dental hygienist could work in                                                                
the building without the dentist actually being present after                                                                   
consulting with him first. Does that still exist?                                                                               
MR. LOGAN replied yes; the levels of supervision are relatively                                                                 
unchanged. As long as the dentist provided the original                                                                         
diagnosis the hygienist would be able to work.                                                                                  
SENATOR MENARD asked if the Dental Board had any concern about a                                                                
procedure turning out bad while a dentist was not in the office                                                                 
and  it   becomes  an  insurance  risk   management  issue.  Some                                                               
periodontal work can cause heart attacks.                                                                                       
MR. LOGAN answered  he couldn't speak for the  current board, but                                                               
in general  thought has been given  to that and it  was felt that                                                               
the overall ability to provide  additional services to the public                                                               
outweighed what they considered a relatively minor risk.                                                                        
SENATOR MENARD said  that the Palmer Dental Center  and one other                                                               
office chose  to have the  dentist, because  often it is  a heart                                                               
attack issue. She thought that  should be looked at sometime down                                                               
the road.                                                                                                                       
2:05:23 PM                                                                                                                    
DON  HABEGAR, Director,  Division of  Corporations, Business  and                                                               
Professional  Licensing, Department  of  Commerce, Community  and                                                               
Economic Development (DCCED), went to section  3 on page 4 (SB 92                                                               
version  M).  He   said  the  concept  saying,   "Pays  the  fees                                                               
established by the board under  AS 08.01. 065" actually gives the                                                               
department authority  to set the fees.  So this is somewhat  of a                                                               
divergent track  to what  is normally  established in  most other                                                               
boards. The  reason he  thought the department  sets the  fees is                                                               
that  it keeps  track of  the costs  and tries  to then  set fees                                                               
based on  an annual  analysis (according  to statute).  Then they                                                               
ask the professions to reimburse the department for their costs.                                                                
He said  he had a  brief conversation  with Dr. Logan  about this                                                               
issue  prior to  the committee  meeting,  and he  didn't seem  to                                                               
indicate that was a huge issue for them either.                                                                                 
2:07:23 PM                                                                                                                    
The other  mostly informational piece  in section 5 is  about the                                                               
renewal  of licenses.  As written,  it  indicates the  department                                                               
will  send out  a form  and the  applicant will  fill it  out and                                                               
return it with  a fee. This is what has  been done traditionally,                                                               
but as the  division moves into the "modern age"  they are trying                                                               
to  get  to  where a  person  can  fill  out  their forms  on  an                                                               
interactive website.  And for renewal  of business  licenses they                                                               
are  trying to  send out  a postcard  reminding people  to go  to                                                               
their website. It's cheaper and the  savings are passed on to the                                                               
2:08:46 PM                                                                                                                    
MR. HABEGAR said  section 21 in version M (section  23 in version                                                               
I) has  to do with  investigations. Currently the  profession has                                                               
an  investigator  that  shares his  responsibilities  with  other                                                               
practices. He said the fiscal note  was zero, but that is because                                                               
he didn't understand  that the position is entirely  brand new as                                                               
well as full-time. So, there will be a new fiscal note.                                                                         
2:10:19 PM                                                                                                                    
SENATOR  GIESSEL  asked  Dr.  Logan  his  thoughts  on  the  fees                                                               
established by the board in section 3 on page 4.                                                                                
MR. LOGAN  replied that he is  a little sketchy on  the fees, but                                                               
the overall intent was to  conform to existing statute. They have                                                               
no interest in trying to micro-manage the fees.                                                                                 
SENATOR  GIESSEL  said  the license  renewal  notification  on  a                                                               
postcard  in  section 5  was  crafted  by  the Board  of  Nursing                                                               
several years  ago and it  has worked  really well. Is  the board                                                               
okay with that?                                                                                                                 
MR. LOGAN said he couldn't speak  for the Dental Board because he                                                               
was no  longer a member,  but for  the Dental Society,  yes; they                                                               
are perfectly fine with the idea  of a postcard reminder to go to                                                               
the website.                                                                                                                    
Finding no  further questions, Chair  Egan said he would  hold SB                                                               
2:13:12 PM                                                                                                                    
          SB  68-COMMERCIAL FISHING & AGRICULTURE BANK                                                                      
CHAIR EGAN announced SB 68 to be up for consideration.                                                                          
2:13:16 PM                                                                                                                    
SENATOR  COGHILL, sponsor  of SB  68, said  his history  with the                                                               
Commercial Fishing  and Agriculture Bank  (CFAB) goes back  a few                                                               
years in that he has been impressed  by the record they have of a                                                               
private industry  approach on a  statutorily driven  problem. The                                                               
problem has  been how  to take  care of  some of  the agriculture                                                               
issues  and  how  to  do  some  capitalization  for  the  fishing                                                               
industry. Only a  couple of places in Alaska can  lend based on a                                                               
fishing permit  and one of  them is this  bank. The other  is the                                                               
Division  of Investments,  a state  run organization.  He prefers                                                               
the private model, which has done well.                                                                                         
He said  CFAB is a creature  of statutes put together  and funded                                                               
by the legislature with the  idea of increasing loan capacity and                                                               
encouraging fishing and  agriculture in Alaska. This  bank is co-                                                               
op style and  has paid the state back its  original funding. This                                                               
bill now seeks to expand CFAB's authority by giving them the                                                                    
freedom to work as a prudent investor and lender.                                                                               
2:17:26 PM                                                                                                                    
JOSH BANKS, intern for Senator Coghill, presented a sectional                                                                   
analysis of SB 68 as follows:                                                                                                   
     Section 1:  removes the requirement that  one member of                                                                    
     the CFAB board of directors  be a resident farmer. This                                                                    
     does  not  restrict  the  governor  from  appointing  a                                                                    
     farmer  for  one of  the  positions  or a  farmer  from                                                                    
     seeking an appointment on the board.                                                                                       
     Section 2: subsection  4 amends the powers  of the bank                                                                    
     in  two ways.  It  removes the  dollar limitations  for                                                                    
     loans being  used for tourism  in the state.  This will                                                                    
     allow  CFAB  to  stay competitive  with  other  lending                                                                    
     organizations. In addition to  this, subsections 8, 15,                                                                    
     and 16 will  allow CFAB to give loans to  those that do                                                                    
     not   meet   the   resident   or   resident   ownership                                                                    
     requirements  providing that  their operating  facility                                                                    
     is located in  the state of Alaska and  that a majority                                                                    
     of  the  interest  of that  organization  is  owned  by                                                                    
     United States residents. Subsections  10, 12 and 13 are                                                                    
     also amended  to expand the  current powers of  CFAB to                                                                    
     include the  provisions provided in subsections  15 and                                                                    
     Section  3:  adds  an  audit  by the  DCCED  to  be  an                                                                    
     exception to the  records confidentiality provisions in                                                                    
     the CFAB statutes.                                                                                                         
     Section 4:  amends records  confidentiality in  that it                                                                    
     will allow  the bank  to release  a list  of candidates                                                                    
     running  for  director to  the  voting  members of  the                                                                    
     Section  5:  allows  an  examination   of  CFAB  to  be                                                                    
     conducted by  the DCCED. This  revision is  to increase                                                                    
     the   credibility  of   CFAB.   This  examination   was                                                                    
     originally put  in the statutes, but  has recently been                                                                    
     removed due  to the  misconception that the  state pays                                                                    
     the full fees for  the examination. Initially the state                                                                    
     does pay  the fees, but  CFAB reimburses the  state for                                                                    
     Section  6: repeals  two parts  of Alaska  statute. The                                                                    
     first part repeals the  definition of "resident farmer"                                                                    
     because  a  resident  farmer is  not  required  on  the                                                                    
     board. Second,  since CFAB is  a fully  private lending                                                                    
     organization, the prohibition of  its having a lobbyist                                                                    
     is repealed.                                                                                                               
     Section  7:   limits  the  DCCED  from   conducting  an                                                                    
     examination within  the first year after  the effective                                                                    
     Section 8: provides an immediate effective date.                                                                           
SENATOR  COGHILL added  that in  order for  the bank  examination                                                               
provisions to properly take effect he  wanted the rest of the law                                                               
to go  into effect first and  not force a bank  examination right                                                               
away, but rather have it fall into the established cycle.                                                                       
SENATOR DAVIS asked if the language would allow that to happen.                                                                 
SENATOR COGHILL said  language asks to have it  take effect after                                                               
one year, so  a bank could go through an  examination cycle which                                                               
would give them a chance to do an annual report.                                                                                
SENATOR DAVIS asked if it reverts back to the original language.                                                                
SENATOR COGHILL  responded if the effective  date is immediately,                                                               
then  within one  year the  bank examination  could happen.  That                                                               
would allow one year's lapse so it would fall into a cycle.                                                                     
2:24:58 PM                                                                                                                    
LEA  KINGERT, President  and CEO,  Alaska Commercial  Fishing and                                                               
Agriculture Bank  (CFAB), said  this bill  does many  things with                                                               
CFAB. The first item is  the statutory requirement for a farmer's                                                               
seat,  but currently  there  are  only two  people  who would  be                                                               
eligible to fill  that seat. It's not that they  don't want to do                                                               
agriculture  loans, but  they haven't  been  approached to  grant                                                               
many  of them.  The agriculture  industry has  other options  for                                                               
getting loans that they prefer to use.                                                                                          
Second, she said  SB 68 also provides for  a periodic examination                                                               
of CFAB by  the state's bank examiners with  the resulting report                                                               
being  provided   to  the   legislative  auditor.   Ms.  Klingert                                                               
explained  that from  1989-2003 CFAB  used to  do audits,  but in                                                               
2003   for   reasons   she    doesn't   really   understand   the                                                               
administration  persuaded   the  legislature  to   eliminate  the                                                               
requirement.  But  this  kind  of  independent  and  professional                                                               
examination greatly  enhances CFAB's credibility with  its lender                                                               
and affects the borrowing terms  offered by that lender, which in                                                               
turn affects what they can offer to their membership.                                                                           
Other  potential benefits  to CFAB  include a  reliable means  of                                                               
monitoring and evaluating the quality  and effectiveness of their                                                               
lending practices.  Even though  management and staff  take pride                                                               
in their professional competence  they welcome the opportunity to                                                               
have  a  qualified second  set  of  eyes evaluating  the  overall                                                               
results  of  their judgments.  Experience  has  taught them  that                                                               
distance  and  impartiality  bolstered   by  insight  into  other                                                               
financial  institutions'  practices  and experience  can  provide                                                               
valuable guidance.                                                                                                              
MS. KLINGERT  said that  SB 68  also seeks  to remove  the dollar                                                               
limitations  that were  placed  on loans  for  tourism and  other                                                               
resource-based  activities when  CFAB acquired  the authority  to                                                               
make  such loans  in 2000.  CFAB  has not  made a  great deal  of                                                               
tourism  and   other  resource-based   loans,  but   they  remain                                                               
convinced that even the existing  modest level of diversification                                                               
has   added    to   CFAB's   overall   effectiveness,    to   its                                                               
creditworthiness and to the ability to serve its basic markets.                                                                 
She   said  that   CFAB  doesn't   currently  have   any  pending                                                               
applications that exceed  the current limits, but  they are aware                                                               
of a  few past potential  opportunities that were  not encouraged                                                               
because   of  these   limitations.  They   simply  believe   that                                                               
inflationary effects  over time and the  tendency toward mergers,                                                               
acquisitions  and  consolidations  among subject  operators  will                                                               
sooner  or   later  cause  the  existing   limitation  to  become                                                               
MS. KLINGERT  said SB 68  also seeks to  permit CFAB to  make the                                                               
same kind of  loans for non-resident owners if  the operation has                                                               
a  bricks  and  mortar  presence  in  Alaska.  CFAB  already  has                                                               
authority to  make such  loans to a  seafood processor,  a timber                                                               
processor,  an  agricultural  processor  or  a  harvester.  Their                                                               
reasoning is the realization that  even though a lodge in Western                                                               
Alaska, for  example, may be  owned by an outside  corporation it                                                               
is  an enhancement  to the  local economy  and will  provide some                                                               
level  of  opportunities  to Alaskan  employees,  suppliers,  and                                                               
ancillary  operations.   It  is  another  element   of  potential                                                               
diversification    that    will   strengthen    CFAB's    overall                                                               
2:30:52 PM                                                                                                                    
CHAIR  EGAN  thanked  her  for   her  testimony  and  finding  no                                                               
questions, said  he would bring  SB 68 back before  the committee                                                               
at the next meeting.                                                                                                            
2:31:42 PM                                                                                                                    
          SB  90-BOARD OF PUBLIC ACCOUNTANCY SECRETARY                                                                      
CHAIR EGAN brought SB 90 up again.                                                                                              
SENATOR GIESSEL said she supports the  intent of SB 90, but it is                                                               
still not clear  to her why the personnel  department lowered the                                                               
secretary  position to  a range  19 instead  of a  range 23.  The                                                               
reason seems to  be that it's not clear that  the intent was that                                                               
the  person filling  this  role is  actually  a certified  public                                                               
accountant  (CPA),   a  pretty   high  bar.  Also,   the  board's                                                               
regulations  don't  have clear  criteria  that  makes this  is  a                                                               
professional   position  with   a  management   role  that   does                                                               
supervisor and policy  level work. That's how it  got scaled back                                                               
to a  range 19.  It looks  like the person  is just  someone with                                                               
accounting experience.                                                                                                          
She also  thought that  other accounting folks  might want  to be                                                               
raised  to  a  range  23,  an  unintended  consequence.  So,  she                                                               
suggested  that  the   board  make  it  really   clear  in  their                                                               
regulations  that they  intended  a CPA  who  would be  managing,                                                               
supervising and  making policy-level  type decisions.  Then there                                                               
wouldn't be any question about the range level.                                                                                 
2:33:59 PM                                                                                                                    
NICKI NEAL, Director, Division of  Personnel and Labor Relations,                                                               
Department  of   Administration  (DOA),  said  it   was  not  her                                                               
understanding that  the board's intent  is to require a  CPA. She                                                               
didn't know  if even then the  position would get to  a range 23,                                                               
because statutes  require like  pay for  like work  for partially                                                               
exempt positions,  and the Personnel  Board put this  position in                                                               
that category just last week.                                                                                                   
SENATOR PASKVAN asked if she had a position on SB 90.                                                                           
MS. NEAL replied that the division was neutral.                                                                                 
SENATOR PASKVAN  said it was  his belief that the  position would                                                               
be there for purposes of  making determinations on the conduct of                                                               
the members; it's not just an accountant-type position.                                                                         
MS. NEAL responded  that the she had the  specifications, but she                                                               
thought   the  director   would   be  more   familiar  with   the                                                               
2:36:31 PM                                                                                                                    
DON  HABEGAR, Director,  Division of  Corporations, Business  and                                                               
Professional  Licensing, Department  of  Commerce, Community  and                                                               
Economic   Development  (DCCED),   said  he   has  had   numerous                                                               
conversations  with the  CPA Board  on this  issue. The  original                                                               
intent  was  to require  a  CPA  and  provide  a range  23  rate.                                                               
However, it was brought up that  a talent pool might be out there                                                               
at the university  level or someone else might be  waiting in the                                                               
wing.  The  board felt  that  at  a  range  19 they  wouldn't  be                                                               
successful in having  enough interest in the  position. They also                                                               
said a  lot of folks from  outside Alaska are interested  in this                                                               
type of  licensure and that  having someone who  is knowledgeable                                                               
about  a wide  variety of  practices in  other jurisdictions  was                                                               
important to  them. So in  the end  language was broadened  in HB                                                               
315 to include a CPA requirement and accounting skills.                                                                         
MR.  HABEGAR said  the  board  wants to  be  part  of the  hiring                                                               
process. The Department  of Law said if a public  board member is                                                               
voluntary but a  part of their system, they can  be considered an                                                               
employee of the state for this  regard. So, they could be part of                                                               
the interview  process. He added  that speaking on behalf  of the                                                               
board, they would still like to see this bill go through.                                                                       
CHAIR  EGAN said  they passed  this legislation  unanimously last                                                               
year, and  a mistake  was made  saying the  new hire  couldn't be                                                               
over a range  19. So, one of the things  this legislation does is                                                               
correct that mistake allowing the board to hire a range 23.                                                                     
SENATOR  PASKVAN also  clarified  that  the legislature  intended                                                               
this position to be a range 23  a year ago when it was classified                                                               
as a  range 19. He thought  it was misclassified. Language  in SB                                                               
90 dispenses with any question  about it not being anything other                                                               
than a range 23.                                                                                                                
SENATOR  GIESSEL   asked  if  the   broader  definition   of  the                                                               
requirements  of this  job will  require internal  alignment with                                                               
other folks who have accounting experience.                                                                                     
MS. NEAL answered that some  individuals might think a higher pay                                                               
range for them is warranted because  of this, but it would be her                                                               
position that it's not because they are subject to the pay plan.                                                                
2:42:32 PM                                                                                                                    
SENATOR PASKVAN moved to report SB 90 from committee with                                                                       
individual recommendations and attached zero fiscal note. There                                                                 
were no objections and it was so ordered.                                                                                       
2:42:57 PM                                                                                                                    
At ease from 2:42 to 2:44.                                                                                                      
2:44:13 PM                                                                                                                    
CHAIR EGAN called the meeting back to order and adjourned at                                                                    
2:44 p.m.                                                                                                                       

Document Name Date/Time Subjects
SB 90 Sponsor Statement.pdf SL&C 2/24/2011 1:30:00 PM
SB 90
SB 90 Board of Accountancy Background Letter.pdf SL&C 2/24/2011 1:30:00 PM
SB 90
SB 90 Alaska Society of CPA Support Letter.pdf SL&C 2/24/2011 1:30:00 PM
SB 90
SB 90 DOA Determination on Range and Step.pdf SL&C 2/24/2011 1:30:00 PM
SB 90
SB090-CCED-CBPL-02-18-11.pdf SL&C 2/24/2011 1:30:00 PM
SB 90
SB 68 Sponsor Statement.PDF SL&C 2/24/2011 1:30:00 PM
SB 68
SB 68 CFAB analysis.PDF SL&C 2/24/2011 1:30:00 PM
SB 68
SB 68 Sectional Analysis.pdf SL&C 2/24/2011 1:30:00 PM
SB 68
SB 68 Letters of support.PDF SL&C 2/24/2011 1:30:00 PM
SB 68
SB068-CCED-DBS-02-17-11.pdf SL&C 2/24/2011 1:30:00 PM
SB 68