Legislature(2015 - 2016)BELTZ 105 (TSBldg)

04/14/2015 01:30 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 107 INSURANCE; RISK MG'T; HOLDING COMPANIES TELECONFERENCED
Scheduled but Not Heard
+ HB 26 EXTEND CERT. DIRECT-ENTRY MIDWIVES BOARD TELECONFERENCED
Moved SCS HB 26(L&C) Out of Committee
+ HB 41 SPORT FISHING SERVICES TELECONFERENCED
Heard & Held
+ HB 46 WORKFORCE INVESTMENT BOARD VETERAN MEMBER TELECONFERENCED
Moved HB 46 Out of Committee
+ HB 116 EXTEND ALCOHOLIC BEVERAGE CONTROL BOARD TELECONFERENCED
Moved HB 116 Out of Committee
+ HB 178 WORKERS' COMP MEDICAL FEES; DELAY TELECONFERENCED
Moved HB 178 Out of Committee
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         April 14, 2015                                                                                         
                           1:30 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Mia Costello, Chair                                                                                                     
Senator Cathy Giessel, Vice Chair                                                                                               
Senator Kevin Meyer                                                                                                             
Senator Gary Stevens                                                                                                            
Senator Johnny Ellis                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 107                                                                                                             
"An Act  relating to  insurance; relating  to risk  based capital                                                               
for domestic insurers and  fraternal benefit societies, including                                                               
provisions related to insurers subject  to risk based capital and                                                               
action  level  event  requirements;  relating to  review  by  the                                                               
director of  insurance of an  insurer's risk based  capital plan;                                                               
relating to  confidentiality and  sharing of  certain information                                                               
submitted to  the director of  insurance; relating  to evaluating                                                               
an insurance  holding company and  the acquisition of  control of                                                               
or  merger  with  a  domestic insurer;  relating  to  risk  based                                                               
capital, risk  management, and own risk  and solvency assessments                                                               
of insurers; clarifying provisions  related to risk based capital                                                               
plans; relating  to exemptions by  the director of  insurance for                                                               
certain domestic  and casualty insurers  from risk  based capital                                                               
requirements; relating to  insurance holding companies, including                                                               
filing   requirements,   divestiture,  content   of   statements,                                                               
notifications,   and    hearings;   relating    to   registration                                                               
requirements  of insurers;  relating  to  transactions within  an                                                               
insurance  holding company  system  or  transactions involving  a                                                               
domestic  insurer;  relating  to management  and  examination  of                                                               
domestic insurers that  are part of an  insurance holding company                                                               
system;  adding  provisions  relating  to  participation  by  the                                                               
director  of  insurance in  a  supervisory  college; relating  to                                                               
civil  and  criminal penalties  for  violations  by insurers  and                                                               
individuals; relating  to provisions for risk  management and own                                                               
risk and solvency assessments by  insurers; relating to operating                                                               
requirements  for controlling  insurance  producers; relating  to                                                               
producer-controlled  insurers;  adding and  amending  definitions                                                               
related to insurers; and providing for an effective date."                                                                      
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
HOUSE BILL NO. 26                                                                                                               
"An Act extending the termination  date of the Board of Certified                                                               
Direct-Entry Midwives; and providing for an effective date."                                                                    
                                                                                                                                
     - MOVED  SCS HB 26(L&C) OUT OF COMMITTEE                                                                                   
                                                                                                                                
HOUSE BILL NO. 116                                                                                                              
"An Act extending the termination  date of the Alcoholic Beverage                                                               
Control Board; and providing for an effective date."                                                                            
                                                                                                                                
     - MOVED  HB 116 OUT OF COMMITTEE                                                                                           
                                                                                                                                
HOUSE BILL NO. 178                                                                                                              
"An  Act  relating  to workers'  compensation  fees  for  medical                                                               
treatment  and  services;  providing  for an  effective  date  by                                                               
amending the  effective date  of sec.  5, ch.  63, SLA  2014; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED  HB 178 OUT OF COMMITTEE                                                                                           
                                                                                                                                
HOUSE BILL NO. 46                                                                                                               
"An  Act   relating  to  membership   in  the   Alaska  Workforce                                                               
Investment Board."                                                                                                              
                                                                                                                                
     - MOVED  HB 46 OUT OF COMMITTEE                                                                                            
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 41(FIN) AM                                                                              
"An  Act  relating  to  sport  fishing  services,  sport  fishing                                                               
operators,  and  sport  fishing  guides;  and  providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB  26                                                                                                                  
SHORT TITLE: EXTEND CERT. DIRECT-ENTRY MIDWIVES BOARD                                                                           
SPONSOR(s): REPRESENTATIVE(s) OLSON                                                                                             
                                                                                                                                
01/21/15       (H)       PREFILE RELEASED 1/9/15                                                                                
01/21/15       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/21/15       (H)       L&C, FIN                                                                                               
02/13/15       (H)       L&C AT 3:15 PM BARNES 124                                                                              
02/13/15       (H)       Moved  HB 26 Out of Committee                                                                          
02/13/15       (H)       MINUTE(L&C)                                                                                            
02/16/15       (H)       L&C RPT 6DP                                                                                            
02/16/15       (H)       DP: COLVER, JOSEPHSON, KITO, HUGHES,                                                                   
                         TILTON, OLSON                                                                                          
02/24/15       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
02/24/15       (H)       Heard & Held                                                                                           
02/24/15       (H)       MINUTE(FIN)                                                                                            
03/16/15       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
03/16/15       (H)       Moved  HB 26 Out of Committee                                                                          
03/16/15       (H)       MINUTE(FIN)                                                                                            
03/18/15       (H)       FIN RPT 4DP 5NR 1AM                                                                                    
03/18/15       (H)       DP: GUTTENBERG, GARA, MUNOZ, THOMPSON                                                                  
03/18/15       (H)       NR: SADDLER, PRUITT, WILSON, GATTIS,                                                                   
                         NEUMAN                                                                                                 
03/18/15       (H)       AM: KAWASAKI                                                                                           
04/11/15       (H)       TRANSMITTED TO (S)                                                                                     
04/11/15       (H)       VERSION: HB  26                                                                                        
04/13/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/13/15       (S)       L&C, FIN                                                                                               
04/14/15       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB 116                                                                                                                  
SHORT TITLE: EXTEND ALCOHOLIC BEVERAGE CONTROL BOARD                                                                            
SPONSOR(s): LABOR & COMMERCE                                                                                                    
                                                                                                                                
02/18/15       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/18/15       (H)       L&C, FIN                                                                                               
02/27/15       (H)       L&C AT 3:15 PM BARNES 124                                                                              
02/27/15       (H)       Moved  HB 116 Out of Committee                                                                         
02/27/15       (H)       MINUTE(L&C)                                                                                            
03/02/15       (H)       L&C RPT 3DP 3NR                                                                                        
03/02/15       (H)       DP: KITO, JOSEPHSON, OLSON                                                                             
03/02/15       (H)       NR: COLVER, TILTON, HUGHES                                                                             
03/19/15       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
03/19/15       (H)       Heard & Held                                                                                           
03/19/15       (H)       MINUTE(FIN)                                                                                            
04/08/15       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/08/15       (H)       Heard & Held                                                                                           
04/08/15       (H)       MINUTE(FIN)                                                                                            
04/09/15       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/09/15       (H)       Moved  HB 116 Out of Committee                                                                         
04/09/15       (H)       MINUTE(FIN)                                                                                            
04/10/15       (H)       FIN RPT 7DP 1AM                                                                                        
04/10/15       (H)       DP:    SADDLER,   GUTTENBERG,    GATTIS,                                                               
                         EDGMON, WILSON, NEUMAN, THOMPSON                                                                       
04/10/15       (H)       AM: KAWASAKI                                                                                           
04/11/15       (H)       TRANSMITTED TO (S)                                                                                     
04/11/15       (H)       VERSION: HB 116                                                                                        
04/13/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/13/15       (S)       L&C, FIN                                                                                               
04/14/15       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB 178                                                                                                                  
SHORT TITLE: WORKERS' COMP MEDICAL FEES; DELAY                                                                                  
SPONSOR(s): LABOR & COMMERCE                                                                                                    
                                                                                                                                
04/01/15       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/01/15       (H)       L&C                                                                                                    
04/08/15       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/08/15       (H)       Moved  HB 178 Out of Committee                                                                         
04/08/15       (H)       MINUTE(L&C)                                                                                            
04/09/15       (H)       L&C RPT 5DP 1NR                                                                                        
04/09/15       (H)       DP: LEDOUX, HUGHES, KITO, JOSEPHSON,                                                                   
                         OLSON                                                                                                  
04/09/15       (H)       NR: COLVER                                                                                             
04/10/15       (H)       TRANSMITTED TO (S)                                                                                     
04/10/15       (H)       VERSION: HB 178                                                                                        
04/11/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/11/15       (S)       L&C, FIN                                                                                               
04/14/15       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB  46                                                                                                                  
SHORT TITLE: WORKFORCE INVESTMENT BOARD VETERAN MEMBER                                                                          
SPONSOR(s): SADDLER                                                                                                             
                                                                                                                                
01/21/15       (H)       PREFILE RELEASED 1/9/15                                                                                
01/21/15       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/21/15       (H)       L&C                                                                                                    
04/06/15       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/06/15       (H)       Moved  HB 46 Out of Committee                                                                          
04/06/15       (H)       MINUTE(L&C)                                                                                            
04/07/15       (H)       L&C RPT 6DP                                                                                            
04/07/15       (H)       DP: JOSEPHSON, COLVER, HUGHES, TILTON,                                                                 
                         LEDOUX, OLSON                                                                                          
04/09/15       (H)       TRANSMITTED TO (S)                                                                                     
04/09/15       (H)       VERSION: HB  46                                                                                        
04/10/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/10/15       (S)       L&C                                                                                                    
04/14/15       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB  41                                                                                                                  
SHORT TITLE: SPORT FISHING SERVICES                                                                                             
SPONSOR(s): TILTON, MUNOZ                                                                                                       
                                                                                                                                
01/21/15       (H)       PREFILE RELEASED 1/9/15                                                                                
01/21/15       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/21/15       (H)       FSH, FIN                                                                                               
02/12/15       (H)       FSH AT 10:00 AM CAPITOL 120                                                                            
02/12/15       (H)       Moved  CSHB 41(FSH) Out of Committee                                                                   
02/12/15       (H)       MINUTE(FSH)                                                                                            
02/13/15       (H)       FSH RPT CS(FSH) 2DP 2NR                                                                                
02/13/15       (H)       DP: ORTIZ, STUTES                                                                                      
02/13/15       (H)       NR: HERRON, FOSTER                                                                                     
03/25/15       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
03/25/15       (H)       Heard & Held                                                                                           
03/25/15       (H)       MINUTE(FIN)                                                                                            
04/01/15       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/01/15       (H)       <Bill Hearing Postponed to 4/2/15>                                                                     
04/02/15       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/02/15       (H)       -- MEETING CANCELED --                                                                                 
04/03/15       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/03/15       (H)       Moved  CSHB 41(FIN) Out of Committee                                                                   
04/03/15       (H)       MINUTE(FIN)                                                                                            
04/06/15       (H)       FIN RPT CS(FIN) 4DP 5NR                                                                                
04/06/15       (H)       DP: PRUITT, MUNOZ, NEUMAN, THOMPSON                                                                    
04/06/15       (H)       NR: KAWASAKI, WILSON, GARA, GUTTENBERG,                                                                
                         GATTIS                                                                                                 
04/13/15       (H)       TRANSMITTED TO (S)                                                                                     
04/13/15       (H)       VERSION: CSHB 41(FIN) AM                                                                               
04/13/15       (S)       RES AT 3:30 PM BUTROVICH 205                                                                           
04/13/15       (S)       Scheduled but Not Heard                                                                                
04/14/15       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
LAURA STIDOLPH, Staff                                                                                                           
Representative Kurt Olson                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 26 on behalf of the prime                                                                   
sponsor.                                                                                                                        
                                                                                                                                
KRIS CURTIS, Legislative Auditor                                                                                                
Legislative Audit Division                                                                                                      
Legislative Agencies and Offices                                                                                                
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Described the sunset audit of the Board of                                                               
Certified Direct-Entry Midwives in the context of HB 26.                                                                        
                                                                                                                                
SARA CHAMBERS, Operations Manager                                                                                               
Division of Corporations, Business and Professional Licensing                                                                   
Department of Commerce, Community and Economic Development                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions related to HB 26.                                                                     
                                                                                                                                
LAURA STIDOLPH, Staff                                                                                                           
Representative Kurt Olson                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced HB 116 on behalf of the sponsor.                                                              
                                                                                                                                
CYNTHIA FRANKLIN, Director                                                                                                      
Alcoholic Beverage Control (ABC) Board                                                                                          
Department of Commerce, Community and Economic Development                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions and provided supporting                                                               
information relating to HB 116.                                                                                                 
                                                                                                                                
KONRAD JACKSON, Staff                                                                                                           
Representative Kurt Olson                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced HB 178 on behalf of the sponsor.                                                              
                                                                                                                                
MIKE MONAGLE, Director                                                                                                          
Division of Workers Compensation                                                                                                
Department of Labor and Workforce Development (DOLWD)                                                                           
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided information on the Medical                                                                      
Services Review Committee (MSRC) in the context of HB 178.                                                                      
                                                                                                                                
REPRESENTATIVE DAN SADDLER                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Sponsor of HB 46.                                                                                        
                                                                                                                                
GREG CASHEN, Deputy Commissioner                                                                                                
Department of Labor and Workforce Development (DOLWD)                                                                           
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified that DOLWD has not taken a                                                                     
position on HB 46.                                                                                                              
                                                                                                                                
REPRESENTATIVE CATHY TILTON                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Sponsor of HB 41.                                                                                       
                                                                                                                                
KEITH HILYARD, Staff                                                                                                            
Representative Cathy Tilton                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Discussed the support for HB 41.                                                                         
                                                                                                                                
BEN MULLIGAN, Legislative Liaison                                                                                               
Alaska Department of Fish and Game (ADF&G)                                                                                      
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:    Discussed  the  logbook  program  in  the                                                             
context of HB 41.                                                                                                               
                                                                                                                                
TOM BROOKOVER, Acting Director                                                                                                  
Division of Sport Fish                                                                                                          
Alaska Department of Fish and Game (ADF&G)                                                                                      
POSITION STATEMENT:  Discussed the  electronic logbook program in                                                             
the context of HB 41.                                                                                                           
                                                                                                                                
DICK ROHRER, representing himself                                                                                               
Kodiak, Alaska                                                                                                                  
POSITION  STATEMENT:   Testified  that  the penalties  associated                                                             
with  HB  41  potentially  jeopardize   his  sport  fish  guiding                                                               
license.                                                                                                                        
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:30:31 PM                                                                                                                    
CHAIR MIA COSTELLO called the  Senate Labor and Commerce Standing                                                             
Committee meeting  to order at 1:30  p.m. Present at the  call to                                                               
order were Senators Stevens, Giessel,  Ellis, and Chair Costello.                                                               
Senator Meyer arrived soon thereafter.                                                                                          
                                                                                                                                
        HB  26-EXTEND CERT. DIRECT-ENTRY MIDWIVES BOARD                                                                     
                                                                                                                                
CHAIR  COSTELLO announced  the consideration  of HB  26. "An  Act                                                               
extending the termination date of  the Board of Certified Direct-                                                               
Entry Midwives; and providing for an effective date."                                                                           
                                                                                                                                
1:31:53 PM                                                                                                                    
LAURA STIDOLPH,  Staff, Representative  Kurt Olson, on  behalf of                                                               
the  prime sponsor,  stated that  HB 26  would extend  the sunset                                                               
date for  the Board  of Certified  Direct-Entry Midwives  to June                                                               
30, 2017.  She explained that  the Division of  Legislative Audit                                                               
conducts  audits  each year  to  determine  if state  boards  and                                                               
commissions should  be reestablished.  The division  reviewed the                                                               
activities  of the  Board of  Certified Direct-Entry  Midwives to                                                               
determine if there is a  demonstrated public need for the board's                                                               
continued  existence and  whether  it has  been  operating in  an                                                               
effective  manner. The  auditors  recommended that  the board  be                                                               
extended two years until June 30, 2017.                                                                                         
                                                                                                                                
1:32:27 PM                                                                                                                    
SENATOR MEYER joined the committee.                                                                                             
                                                                                                                                
MS. STIDOLPH related  that auditors found the  Board of Certified                                                               
Direct-Entry Midwives  has been serving the  public's interest by                                                               
effectively licensing  certified direct-entry midwives  (CDM) and                                                               
apprentices. In addition,  it was found that  the board continues                                                               
to  improve the  profession by  modifying and  adopting midwifery                                                               
regulations to conform to current standards of care.                                                                            
                                                                                                                                
MS. STIDOLPH highlighted that the  auditors had four findings and                                                               
recommendations:  1) the  Department of  Commerce, Community  and                                                               
Economic   Development   (DCCED)    should   immediately   pursue                                                               
disciplinary sanctions for CDM cases  when warranted; 2) increase                                                               
licensing  fees to  eliminate the  board's operating  deficit; 3)                                                               
the   board  should   communicate  certificate   requirements  to                                                               
continuing  education  providers  to facilitate  compliance  with                                                               
centralized  licensing  regulations;  and  4)  the  board  should                                                               
approve  apprentice   permit  applications  in   accordance  with                                                               
statute.                                                                                                                        
                                                                                                                                
1:34:02 PM                                                                                                                    
KRIS  CURTIS, Legislative  Auditor,  Legislative Audit  Division,                                                               
Legislative Agencies and Offices,  stated that the Audit Division                                                               
conducted  an  audit  of  the  Board  of  Certified  Direct-Entry                                                               
Midwives to determine  whether it was serving  the public purpose                                                               
and  concluded overall  that the  board is  serving the  public's                                                               
interest   by   effectively  licensing   certified   direct-entry                                                               
midwives.                                                                                                                       
                                                                                                                                
However,  the  audit found  that  the  Division of  Corporations,                                                               
Business,  and Professional  Licensing  (DCBPL)  staff failed  to                                                               
operate  in   the  public's  interest  by   not  pursuing  timely                                                               
disciplinary   sanctions  related   to  midwife   investigations.                                                               
Because  of this  serious deficiency,  the  audit recommends  the                                                               
board's termination date  be extended only two years  to June 30,                                                               
2017. The  audit made  four recommendations.  The first  and most                                                               
serious  was  to the  commissioner  of  DCCED to  take  immediate                                                               
action to  pursue disciplinary sanctions  for midwife  cases when                                                               
warranted. The  audit found that disciplinary  sanctions were not                                                               
actively  pursued for  four  investigations  that were  completed                                                               
during  the  audit  period.  The  investigations  of  two  people                                                               
concluded  that  disciplinary  sanctions  were  needed.  However,                                                               
DCBPL investigative  staff did not  actively pursue  sanctions to                                                               
protect  the public  safety. The  respondents in  all four  cases                                                               
refused to sign a consent agreement.                                                                                            
                                                                                                                                
Rather  than  file an  accusation  and  pursue an  administrative                                                               
hearing, DCBPL  staff followed alternate  procedures. Two  of the                                                               
four  cases were  forwarded to  the Department  of Law  Office of                                                               
Special Prosecution  and Appeals (OSPA) without  a sufficiency of                                                               
evidence reviewed  by the assistant  attorney general.  Those two                                                               
cases remained at OSPA for  over a year without action. According                                                               
to OSPA those class B  misdemeanor cases are the lowest priority.                                                               
The other  two cases  were held by  DCBPL investigators  with the                                                               
understanding  that they  would  be forwarded  to  OSPA once  the                                                               
other two cases  were resolved. Due to staff  turnover, the audit                                                               
could  not  determine  why  DCBPL  staff  did  not  pursue  civil                                                               
licensing  action   as  required  by  their   standard  operating                                                               
procedures.  At a  minimum, licensing  action  should be  pursued                                                               
concurrently with  criminal action to  ensure that the  public is                                                               
protected.  By not  pursuing  licensing  action, the  respondents                                                               
were allowed to continue to  practice and the public's safety was                                                               
at risk.                                                                                                                        
                                                                                                                                
MS. CURTIS said the audit  makes three additional recommendations                                                               
for  operational  improvements: 1)  DCBPL  and  the board  should                                                               
consult  and increase  licensing  fees to  eliminate the  board's                                                               
$115,000  operating  deficit;  2) the  board  should  communicate                                                               
certificate  requirements to  continuing  education providers  to                                                               
facilitate     compliance      with     centralized     licensing                                                               
recommendations;  and  3)  the board  should  approve  apprentice                                                               
permits  in  accordance  with  statutes.  The  audit  found  that                                                               
permits  were being  approved by  DCBPL staff  but statutes  only                                                               
allow the board to issue the permits.                                                                                           
                                                                                                                                
1:37:31 PM                                                                                                                    
SENATOR STEVENS asked what the usual extension would be.                                                                        
                                                                                                                                
MS. CURTIS  replied the maximum  allowed in statute is  an eight-                                                               
year extension.                                                                                                                 
                                                                                                                                
SENATOR STEVENS asked  what has to be done in  the next two years                                                               
for the board to receive another extension.                                                                                     
                                                                                                                                
MS. CURTIS explained that the next  audit would focus on what has                                                               
been done with the investigative aspects of the board.                                                                          
                                                                                                                                
1:38:50 PM                                                                                                                    
SENATOR  GIESSEL expressed  concern that  4 of  48 licensees  had                                                               
deficiencies.                                                                                                                   
                                                                                                                                
MS. CURTIS  clarified that  some of  the investigations  could be                                                               
related to unlicensed activity.                                                                                                 
                                                                                                                                
SENATOR GIESSEL  questioned how  48 licensees  could make  up the                                                               
deficit. She asked if the auditors have  a plan, or if it will be                                                               
left to the division.                                                                                                           
                                                                                                                                
MS. CURTIS replied the plan will  be left to the division, but it                                                               
is an  ongoing problem.  The 2006 audit  of the  board identified                                                               
that that midwives had the highest fees of any occupation.                                                                      
                                                                                                                                
1:40:11 PM                                                                                                                    
SENATOR STEVENS asked what the fees are.                                                                                        
                                                                                                                                
MS. CURTIS reviewed the fees identified  on page 15 of the audit.                                                               
For FY 14, the Midwife  Initial Certification and Renewal Fee was                                                               
$1,450. The fee was over $2,000 when the 2006 audit was done.                                                                   
                                                                                                                                
SENATOR  STEVENS  asked  what   happens  when  someone  practices                                                               
midwifery without a license.                                                                                                    
                                                                                                                                
MS. CURTIS replied  that falls under the purview  of the division                                                               
of to pursue.                                                                                                                   
                                                                                                                                
1:41:48 PM                                                                                                                    
JANEY HOVENDEN, Director, Division  of Corporations, Business and                                                               
Professional  Licensing, Department  of  Commerce, Community  and                                                               
Economic Development (DCCED), introduced herself.                                                                               
                                                                                                                                
1:42:13 PM                                                                                                                    
SARA  CHAMBERS,  Operations  Manager, Division  of  Corporations,                                                               
Business  and  Professional  Licensing, Department  of  Commerce,                                                               
Community  and Economic  Development (DCCED),  offered to  answer                                                               
questions related to HB 26.                                                                                                     
                                                                                                                                
SENATOR  STEVENS  asked  what   happens  when  someone  practices                                                               
midwifery without a license.                                                                                                    
                                                                                                                                
MS. CHAMBERS explained  that the division goes  through a process                                                               
of  investigation  and discovery  that  involves  either a  board                                                               
member or subject matter expert to  review the facts. If there is                                                               
sufficient  cause for  a violation  the division  would pursue  a                                                               
consent  agreement  that acknowledges  a  violation  and how  the                                                               
person plans to  correct it. That may  include licensure, license                                                               
probation, or  fines. In  many cases  of unlicensed  activity the                                                               
person is  not willing to  work toward an amicable  agreement. In                                                               
those  cases the  division works  with the  Department of  Law to                                                               
file an accusation  of violation of law and  pursue the sanctions                                                               
available to that licensing program.                                                                                            
                                                                                                                                
CHAIR  COSTELLO asked  what  the division's  plan  is to  address                                                               
board deficits.                                                                                                                 
                                                                                                                                
MS.   CHAMBERS  explained   that  the   fees  for   midwives  and                                                               
apprentices have  been increased  since the audit  was initiated.                                                               
The board is aware of the  historical deficit and is working with                                                               
the division  to raise all  the license fees within  the program.                                                               
The division has  prescribed a stair step program to  try to chip                                                               
away  at  the  debt  without it  becoming  overly  burdensome  to                                                               
midwives. She  said the board  recognizes that it  is responsible                                                               
for the  deficit, but it  is difficult because  investigations of                                                               
licensed and unlicensed practice can be a very expensive.                                                                       
                                                                                                                                
1:46:39 PM                                                                                                                    
SENATOR  GIESSEL offered  her understanding  is that  the deficit                                                               
stems from a  large legal case that cost the  board a significant                                                               
amount.                                                                                                                         
                                                                                                                                
MS. CHAMBERS agreed.                                                                                                            
                                                                                                                                
SENATOR GIESSEL  pointed out that  it would help if  boards could                                                               
retain  the penalties  that are  levied against  their licensees,                                                               
but  they go  into the  general  fund. She  clarified that  these                                                               
licensees   are  direct-entry   midwives   not  certified   nurse                                                               
midwives.                                                                                                                       
                                                                                                                                
CHAIR  COSTELLO recalled  the discussion  that  if the  penalties                                                               
were  retained  by  the  board it  might  stimulate  interest  in                                                               
pursuing more penalties.                                                                                                        
                                                                                                                                
SENATOR STEVENS asked if midwives work fulltime.                                                                                
                                                                                                                                
MS.  CHAMBERS  replied there  are  both  fulltime and  part  time                                                               
midwives. Responding  to a further  question, she  confirmed that                                                               
the licensing fee is the same  regardless of how much the midwife                                                               
works.                                                                                                                          
                                                                                                                                
1:50:07 PM                                                                                                                    
MS.  CHAMBERS  reported that  since  the  division met  with  the                                                               
auditors,  DCBPL has  reviewed its  quality control  measures and                                                               
investigative  protocols with  the new  chief investigator.  They                                                               
have  worked to  tighten the  standards and  timeframes and  have                                                               
been  working with  the Department  of Law  and OSPA  to use  the                                                               
audit as a tool for  further quality improvement agency wide. The                                                               
cases that the  audit identified are now in  full compliance with                                                               
the stated  protocols. She expressed optimism  about standing the                                                               
test of compliance per auditing standards.                                                                                      
                                                                                                                                
CHAIR COSTELLO asked her to review of the fiscal note.                                                                          
                                                                                                                                
1:52:20 PM                                                                                                                    
MS. CHAMBERS explained that the  fiscal note speaks to the sunset                                                               
of the  board and  reflects the changes  that are  anticipated if                                                               
the board  dissolves. "Since  the sunset  assumes that  the board                                                               
sunsets,  this would  reinitiate what  we're currently  expending                                                               
for travel," she said.                                                                                                          
                                                                                                                                
SENATOR  GIESSEL asked  Ms. Curtis  if she  considered a  shorter                                                               
extension, say one year.                                                                                                        
                                                                                                                                
MS.  CURTIS  replied   she  worked  with  Ms.   Chambers  on  the                                                               
appropriate timeframe and two years  seemed sufficient. She noted                                                               
that  the division  appears  to have  addressed  the issues  more                                                               
quickly than anticipated.                                                                                                       
                                                                                                                                
CHAIR COSTELLO asked  Senator Giessel if she wanted  an update in                                                               
a year.                                                                                                                         
                                                                                                                                
SENATOR  GIESSEL  said  she  would like  an  interim  report,  if                                                               
possible.                                                                                                                       
                                                                                                                                
MS. CURTIS  said the direction  has to come from  the Legislative                                                               
Budget and Audit (LB&A) Committee, but that has been done.                                                                      
                                                                                                                                
SENATOR  GIESSEL  asked  if  that is  best  done  through  intent                                                               
language in the sunset bill or an informal request to the LB&A.                                                                 
                                                                                                                                
MS. CURTIS  said she is  only aware of  it being done  through an                                                               
informal request to the LB&A.                                                                                                   
                                                                                                                                
1:55:42 PM                                                                                                                    
CHAIR COSTELLO found no public testimony and closed it.                                                                         
                                                                                                                                
1:56:12 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
1:57:05 PM                                                                                                                    
CHAIR  COSTELLO reconvened  the  meeting  and recognized  Senator                                                               
Giessel.                                                                                                                        
                                                                                                                                
SENATOR  GIESSEL  offered  a   conceptual  amendment  to  capture                                                               
legislative intent  to request an interim  one-year status update                                                               
from the  Legislative Audit  Division on  the Board  of Certified                                                               
Direct-Entry Midwives.                                                                                                          
                                                                                                                                
1:57:41 PM                                                                                                                    
CHAIR COSTELLO  found no objection and  announced that conceptual                                                               
Amendment 1 is adopted.                                                                                                         
                                                                                                                                
1:57:55 PM                                                                                                                    
SENATOR GIESSEL moved  to report HB 26, 29-LS  0171\A as amended,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
CHAIR COSTELLO  announced that without objection,  SCS HB 26(L&C)                                                               
is  reported   from  the  Senate  Labor   and  Commerce  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
1:58:11 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
         HB 116-EXTEND ALCOHOLIC BEVERAGE CONTROL BOARD                                                                     
                                                                                                                                
1:59:51 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration of HB  116. "An Act extending  the termination date                                                               
of the  Alcoholic Beverage  Control Board;  and providing  for an                                                               
effective date."                                                                                                                
                                                                                                                                
2:00:06 PM                                                                                                                    
LAURA STIDOLPH,  Staff, Representative Kurt Olson,  introduced HB                                                               
116 on  behalf of  the sponsor.  She stated  that the  bill would                                                               
extend the sunset  date for the Alcoholic  Beverage Control (ABC)                                                               
Board  to  June  30,  2018. The  Division  of  Legislative  Audit                                                               
reviewed the  activities of  the ABC  Board to  determine whether                                                               
there  is  a  demonstrated  public   need  for  the  ABC  Board's                                                               
continued  existence and  whether  it has  been  operating in  an                                                               
effective manner as per AS 24.44.                                                                                               
                                                                                                                                
MS.  STIDOLPH reported  that the  board has  resolved all  issues                                                               
found  in prior  audits with  two  being resolved  and one  being                                                               
partially resolved.  She directed attention to  the five findings                                                               
and  recommendations  in  the  most   recent  audit.  First,  the                                                               
legislative auditors  recommended the board director  ensure that                                                               
all board meetings  are properly published on  the state's online                                                               
public   notice   system.   Second,  the   legislative   auditors                                                               
recommended  that  the board  notify  local  governing bodies  of                                                               
applications  for new  and transfer  licenses within  10 days  of                                                               
receipt.  Third, the  legislative auditors  recommended that  the                                                               
board  issue  catering  permits   in  accordance  with  statutory                                                               
requirements. Fourth,  the legislative auditors  recommended that                                                               
the  board issue  recreational site  licenses in  accordance with                                                               
statutes; and finally, the  legislative auditors recommended that                                                               
the  board  implement   a  process  to  monitor   and  track  all                                                               
complaints to ensure they are resolved in a timely manner.                                                                      
                                                                                                                                
MS.  STIDOLPH reported  that the  Division  of Legislative  Audit                                                               
recommended that  the ABC Board  be extended three years  to June                                                               
30, 2018.  The opinion  of the legislative  auditors is  that the                                                               
board serves  the public's interest by  effectively licensing and                                                               
regulating  the  manufacture,  barter,  possession  and  sale  of                                                               
alcoholic beverages in Alaska.                                                                                                  
                                                                                                                                
She  pointed  out that  until  HB  123 establishing  a  marijuana                                                               
control  board is  passed, regulation  for marijuana  falls under                                                               
the ABC  Board per the initiative  passed last fall. That  is why                                                               
the  fiscal  note reflects  expenditures  for  the regulation  of                                                               
marijuana.  However, this  money  was not  allocated  and can  be                                                               
removed if HB 123 passes.                                                                                                       
                                                                                                                                
2:02:36 PM                                                                                                                    
CYNTHIA  FRANKLIN,  Director,  Alcoholic Beverage  Control  (ABC)                                                               
Board,   Department   of   Commerce,   Community   and   Economic                                                               
Development  (DCCED),  reported that  she  joined  the agency  in                                                               
September 2014  and was  able to oversee  the final  responses to                                                               
the legislative  audit team. She  opined that many of  the issues                                                               
in the audit  have been addressed. She stated support  for HB 116                                                               
and  posited  that the  audit  recommended  a shorter  three-year                                                               
sunset to  accommodate marijuana  potentially being added  to the                                                               
board's duties if Ballot Measure 2 passed.                                                                                      
                                                                                                                                
CHAIR COSTELLO asked her to review the fiscal note.                                                                             
                                                                                                                                
MS.  FRANKLIN explained  that  the fiscal  note  relating to  the                                                               
marijuana regulation  is a match  to the fiscal note  attached to                                                               
HB 123  creating the marijuana  control board. The  $1.78 million                                                               
for  the  alcohol  duties  of  the  board  is  contained  in  the                                                               
governor's  budget. The  budget  originally  contained the  $1.54                                                               
million for the marijuana regulation.  That was separated and the                                                               
legislature  requested  that  those  monies be  included  in  the                                                               
fiscal note  process as  marijuana bills  made their  way through                                                               
the  legislative process.  The  $1.54 million  for the  marijuana                                                               
regulation  reflects a  $50,000  cost for  the marijuana  control                                                               
board. The  remainder is for  personnel and services  relating to                                                               
the  new substance.  The fairly  significant  expenditure in  the                                                               
services  section is  for a  software tracking  system that  will                                                               
enable the  regulating agency to  tag marijuana plants  to ensure                                                               
that marijuana sold in licensed  establishments has been grown by                                                               
licensed cultivators.  This is to prevent  black market marijuana                                                               
from  being  sold  in  licensed  premises  and  ensure  that  the                                                               
marijuana has  been tested according  to the  regulations written                                                               
by  the  board. There  is  also  some  funding in  the  marijuana                                                               
portion  of the  fiscal  note for  a database  so  the board  can                                                               
report to the legislature and public.                                                                                           
                                                                                                                                
She said  that accommodating anticipated  requests for  data will                                                               
requires  staff  research  time,  which translates  to  time  and                                                               
money. The  marijuana fiscal note  includes the  services related                                                               
to personnel,  to vehicles for investigators,  for legal services                                                               
related  to the  writing of  the regulations  in addition  to the                                                               
technology expenditures.                                                                                                        
                                                                                                                                
CHAIR COSTELLO asked how many staff are anticipated.                                                                            
                                                                                                                                
MS. FRANKLIN explained  that the ABC Board currently  has a staff                                                               
of  10, not  including  herself; five  are enforcement  officers,                                                               
three  are  licensing  specialists, and  two  are  administrative                                                               
personnel.   The  FY15   supplemental  adds   two  positions   to                                                               
accommodate  the  time  that  has been  spent  since  November  4                                                               
working  on marijuana  issues. That  is one  licensing specialist                                                               
and one administrative  personnel. The FY16 budget  asks for four                                                               
additional  personnel; one  additional  licensing specialist  and                                                               
three  additional enforcement  officers. That  brings the  agency                                                               
staff  to 16  plus the  director for  both substances  statewide.                                                               
This is  adequate to start but  will likely need to  be increased                                                               
going forward.                                                                                                                  
                                                                                                                                
MS. FRANKLIN noted  that questions have been  raised about adding                                                               
enforcement in the  first year when there aren't  any licenses in                                                               
effect until May, 2016. She  explained that the board has already                                                               
spent  quite  a  bit  of  enforcement  personnel  time  answering                                                               
questions  about  what  can  and  cannot  be  done  legally  with                                                               
marijuana,  and  at  least  three   businesses  are  engaging  in                                                               
commercial  marijuana   activities  without  licenses   or  being                                                               
subject  to  regulations.  The  board is  relying  on  local  law                                                               
enforcement to shut  those businesses down which  has resulted in                                                               
spotty enforcement.  For this  reason, the  board believes  it is                                                               
imperative  to fund  enforcement  officers early  to ensure  that                                                               
everyone  waits until  the rules  are in  place and  personnel is                                                               
available to address  the businesses open for  business before it                                                               
is legal.                                                                                                                       
                                                                                                                                
2:09:45 PM                                                                                                                    
CHAIR COSTELLO opened and closed public testimony.                                                                              
                                                                                                                                
SENATOR MEYER  asked what the  issues were that the  sunset audit                                                               
identified and how they were corrected.                                                                                         
                                                                                                                                
MS. FRANKLIN  said the first issue  was whether or not  the board                                                               
was publicly  noticing its  meetings in  the correct  place. That                                                               
matter  was   resolved  with  staff  training.   The  audit  also                                                               
identified two  issues related to licenses  and permits. Catering                                                               
permits were  being issued to  businesses that were  in ownership                                                               
transition and  they were  using the  catering permit  process to                                                               
cover the  gap. That process  has been  halted by the  board. The                                                               
recreational site license  issue was that they  were being issued                                                               
outside of what the statute  clearly contemplated. That issue was                                                               
resolved   through  discussions   with   the   board  about   the                                                               
limitations  of the  statute and  the director  and staff  making                                                               
sure  that  the  board  understands they  must  stay  within  the                                                               
statutory limits  on those  license. Another  issue was  that the                                                               
previous licensing supervisor was  saving applications in batches                                                               
and then sending them to  the municipalities, which caused her to                                                               
miss the  ten-day deadline.  That was solved  with the  new staff                                                               
person who strictly complies with  the 10-day notice requirement.                                                               
The  final  issue  related  to   tracking  complaints.  This  was                                                               
addressed  by   instituting  excel  spreadsheets  to   track  the                                                               
complaints.                                                                                                                     
                                                                                                                                
SENATOR  MEYER recalled  that in  years past  when the  Anchorage                                                               
Assembly  protested  the renewal  of  a  license, the  ABC  Board                                                               
reviewed  the   decision  and   either  upheld   it  or   made  a                                                               
determination that the decision was arbitrary or capricious.                                                                    
                                                                                                                                
MS. FRANKLIN said  the protest process for  local government says                                                               
the  board shall  uphold the  protest unless  it is  found to  be                                                               
arbitrary, capricious  and unreasonable. She opined  that some of                                                               
the previous  issues have been resolved  on their own with  a new                                                               
iteration of the  board combined with the  audit, the stakeholder                                                               
process and changes in staff.                                                                                                   
                                                                                                                                
SENATOR MEYER  described determinations of  arbitrary, capricious                                                               
and unreasonable as subjective.                                                                                                 
                                                                                                                                
MS. FRANKLIN  said the new  boards and agencies attorney  for the                                                               
Department  of  Commerce,   Community  and  Economic  Development                                                               
(DCCED)  has provided  excellent advice  to the  board about  the                                                               
legal meaning of  those terms and the board has  made it clear to                                                               
local  governments that  that is  a  very high  standard for  the                                                               
board to overcome.                                                                                                              
                                                                                                                                
SENATOR  STEVENS asked  if the  sunset could  be extended  to the                                                               
regular six years  if marijuana doesn't fall under  the ABC Board                                                               
in order to save time and money.                                                                                                
                                                                                                                                
MS. FRANKLIN said she believes that  the first time around it's a                                                               
good idea  to have  a three-year sunset,  although she  agrees in                                                               
theory  that the  earlier  audit  does represent  a  cost to  the                                                               
agency.                                                                                                                         
                                                                                                                                
2:20:04 PM                                                                                                                    
SENATOR GIESSEL moved to report  HB 116, labeled 29-LS0596\A from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s).                                                                                                                        
                                                                                                                                
CHAIR  COSTELLO  announced  that  without  objection  HB  116  is                                                               
reported from the Senate Labor and Commerce Standing Committee.                                                                 
                                                                                                                                
2:20:25 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
            HB 178-WORKERS' COMP MEDICAL FEES; DELAY                                                                        
                                                                                                                                
2:22:03 PM                                                                                                                    
CHAIR COSTELLO  announced the  consideration of  HB 178.  "An Act                                                               
relating to workers' compensation  fees for medical treatment and                                                               
services;  providing  for  an  effective  date  by  amending  the                                                               
effective date of sec. 5, ch.  63, SLA 2014; and providing for an                                                               
effective date."                                                                                                                
                                                                                                                                
KONRAD JACKSON,  Staff, Representative Kurt Olson,  introduced HB                                                               
178 speaking to the following sponsor statement:                                                                                
                                                                                                                                
      For many years Alaska has faced the highest workers'                                                                      
      compensation rates in the nation. During the second                                                                       
     session  of the  28th Legislature,  House Bill  316 was                                                                    
     passed. The  bill was a  more sweeping solution  to the                                                                    
     challenge   of  the   previous  medical   services  fee                                                                    
     schedule than we have experienced in many years.                                                                           
                                                                                                                                
     House  Bill  316  tasked the  Medical  Services  Review                                                                    
     Committee (MSRC)  with setting a conversion  factor and                                                                    
     a  geographic differential  to be  used in  conjunction                                                                    
     with a  basic fee  schedule based  on a  relative value                                                                    
     unit methodology. Once set,  the conversion factor will                                                                    
     be approved  by the  Commissioner of the  Department of                                                                    
     Labor prior  to adoption by regulation  by the Workers'                                                                    
     Compensation Board. All this  was to be accomplished by                                                                    
     July 1, 2015.                                                                                                              
                                                                                                                                
     Since passage of HB 316,  the MSRC has been reactivated                                                                    
     and  met numerous  times.  They  have nearly  completed                                                                    
     their  part  in  establishing the  conversion  factors.                                                                    
     More work remains  to be done to ensure  the reform can                                                                    
     take effect.                                                                                                               
                                                                                                                                
2:24:38 PM                                                                                                                    
MIKE  MONAGLE,   Director,  Division  of   Workers  Compensation,                                                               
Department of  Labor and Workforce Development  (DOLWD) explained                                                               
that when  HB 316 passed,  the Medical Services  Review Committee                                                               
(MSRC) had  not met since  2009. Resurrecting the  committee took                                                               
quite some  time and  the committee didn't  start its  work until                                                               
November 2014.  The committee has  had ten meetings and  once the                                                               
final conversion  factor is decided  the recommendations  will be                                                               
sent  to  the  commissioner  of   the  Department  of  Labor  and                                                               
Workforce  Development (DOLWD).  Public  comment  will likely  be                                                               
taken  and  hopefully   it  will  be  referred   to  the  Workers                                                               
Compensation Board after which the  board will go out through the                                                               
public process for regulation adoption.                                                                                         
                                                                                                                                
MR.  MONAGLE related  that it  would be  virtually impossible  to                                                               
meet the  July 1 deadline to  have the regulations out,  but they                                                               
should be  ready to send  to the lieutenant governor's  office by                                                               
late summer. That  will give medical providers  and the insurance                                                               
companies  and employers  two to  three months  to program  their                                                               
systems with the new fee schedules.                                                                                             
                                                                                                                                
CHAIR COSTELLO  asked why the  Medical Services  Review Committee                                                               
hadn't met since 2009.                                                                                                          
                                                                                                                                
MR. MONAGLE  replied it  was probably  that the  committee didn't                                                               
see  the need  to meet  if their  recommendations were  unheeded.                                                               
They  met extensively  starting  in 2006  and  issued some  final                                                               
reports in 2009,  but none of the recommendations  were acted on.                                                               
House  Bill  316 reenergized  the  committee  and tasks  it  with                                                               
evaluating  these fee  schedules on  an annual  basis. This  work                                                               
will require regular meetings.                                                                                                  
                                                                                                                                
2:28:41 PM                                                                                                                    
CHAIR COSTELLO opened and closed public testimony                                                                               
                                                                                                                                
2:28:53 PM                                                                                                                    
SENATOR  GIESSEL moved  to report  HB  178, labeled  29-LS0813\H,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
CHAIR  COSTELLO  announced  that  without objection,  HB  178  is                                                               
reported from the Senate Labor and Commerce Standing Committee.                                                                 
                                                                                                                                
2:29:06 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
                                                                                                                                
        HB  46-WORKFORCE INVESTMENT BOARD VETERAN MEMBER                                                                    
                                                                                                                                
2:30:22 PM                                                                                                                    
CHAIR  COSTELLO announced  the consideration  of HB  46. "An  Act                                                               
relating  to  membership  in   the  Alaska  Workforce  Investment                                                               
Board."                                                                                                                         
                                                                                                                                
2:30:46 PM                                                                                                                    
REPRESENTATIVE  DAN SADDLER,  Sponsor  of HB  46, introduced  the                                                               
legislation speaking to the following sponsor statement:                                                                        
                                                                                                                                
     House  Bill  46  will   improve  the  Alaska  Workforce                                                                    
     Investment  Board's   ability  to   improve  employment                                                                    
     prospects for  an important and growing  segment of the                                                                    
     state's  workforce,  by  adding  a  seat  to  represent                                                                    
     veterans.                                                                                                                  
                                                                                                                                
     The Alaska  Workforce Investment Board (AWIB)  is a 25-                                                                    
     member board  charged with helping  unemployed Alaskans                                                                    
     find jobs,  and helping current workers  upgrade skills                                                                    
     find  better jobs.  Board  members represent  business,                                                                    
     industry, education, organized  labor, state government                                                                    
     and community-based service organizations.                                                                                 
                                                                                                                                
     However,  there is  no representation  specifically for                                                                    
     veterans,  who  represent  a  significant  and  growing                                                                    
     segment of Alaska's population.  Alaska is home to more                                                                    
     than  73,000  veterans,  and boasts  the  highest  per-                                                                    
     capita  veteran population  in the  nation. Each  month                                                                    
     about  320 service  members  separate  from service  at                                                                    
     Alaska's  three main  military  facilities: Joint  Base                                                                    
     Elmendorf-Richardson, Eielson  Air Force Base,  and Ft.                                                                    
     Wainwright.                                                                                                                
                                                                                                                                
     Polls show 80 percent of  these new veterans would love                                                                    
     to  remain  in Alaska,  but  only  20 percent  do.  The                                                                    
     inability to find  a good job plays  a significant part                                                                    
     in  the state's  loss of  these highly  trained, civic-                                                                    
     minded individuals and their families.                                                                                     
                                                                                                                                
     Having  a veterans'  seat  on the  AWIB  will help  the                                                                    
     board  develop workforce  development policies  to meet                                                                    
     this group's significant needs.  It will help provide a                                                                    
     pool of  well-trained employees for  Alaskan employers.                                                                    
     And  it will  help veterans  transition from  uniformed                                                                    
     service, close any skills gap,  find work and remain in                                                                    
     Alaska as productive citizens.                                                                                             
                                                                                                                                
2:32:46 PM                                                                                                                    
SENATOR STEVENS asked if the bill specifically asks for a                                                                       
veteran to sit on the board.                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER answered yes.                                                                                            
                                                                                                                                
CHAIR COSTELLO asked if there is any opposition to the bill.                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER answered no, it enjoys broad support.                                                                    
                                                                                                                                
CHAIR COSTELLO asked what the unemployment rate is for veterans                                                                 
in Alaska.                                                                                                                      
                                                                                                                                
REPRESENTATIVE SADDLER surmised it's about 6.7 percent.                                                                         
                                                                                                                                
2:34:10 PM                                                                                                                    
SENATOR STEVENS asked him to clarify the meaning of veteran.                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER replied  the definition  of "veteran"  in                                                               
this  legislation  is  someone   who  has  served  honorably  and                                                               
received an honorable discharge  from the armed forces, including                                                               
the reserves;  the National Guard, the  Alaska Territorial Guard,                                                               
and the Alaska Naval Militia.                                                                                                   
                                                                                                                                
GREG  CASHEN,  Deputy  Commissioner,   Department  of  Labor  and                                                               
Workforce  Development  (DOLWD),  reported  that  the  department                                                               
provides   training  programs   specifically  for   veterans.  He                                                               
highlighted  that if  this bill  were to  pass, the  veteran seat                                                               
would replace one of the public seats on the AWIB.                                                                              
                                                                                                                                
CHAIR  COSTELLO   offered  her   understanding  that   there  are                                                               
currently five public seats on the board.                                                                                       
                                                                                                                                
MR. CASHEN agreed.                                                                                                              
                                                                                                                                
CHAIR COSTELLO asked if the administration supports the bill.                                                                   
                                                                                                                                
MR. CASHEN  replied the administration  has not taken  a position                                                               
on the bill.                                                                                                                    
                                                                                                                                
SENATOR  GIESSEL  asked  if  the veteran  seat  would  be  filled                                                               
immediately or when one of the public seats terms out.                                                                          
                                                                                                                                
MR.  CASHEN offered  his belief  that the  veteran seat  would be                                                               
filled when a  public seat expires and three seats  will do so on                                                               
October 13, 2015.                                                                                                               
                                                                                                                                
2:37:04 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:37:22 PM                                                                                                                    
CHAIR COSTELLO reconvened the meeting.                                                                                          
                                                                                                                                
REPRESENTATIVE SADDLER  explained that the five  public seats are                                                               
designed  specifically to  ensure  that there  is  a majority  of                                                               
private  sector  members  on  the board.  The  balance  would  be                                                               
maintained if one of those seats was designated for a veteran.                                                                  
                                                                                                                                
SENATOR  STEVENS commented  that  a private  sector member  could                                                               
also be a veteran.                                                                                                              
                                                                                                                                
REPRESENTATIVE SADDLER agreed.                                                                                                  
                                                                                                                                
CHAIR COSTELLO opened and closed public testimony.                                                                              
                                                                                                                                
2:38:17 PM                                                                                                                    
SENATOR GIESSEL moved to report  HB 46, labeled 29-LS0282\A, from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s).                                                                                                                        
                                                                                                                                
CHAIR  COSTELLO  announced  that  without  objection,  HB  46  is                                                               
reported from the Senate Labor and Commerce Standing Committee.                                                                 
                                                                                                                                
2:38:49 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
                 HB  41-SPORT FISHING SERVICES                                                                              
                                                                                                                                
2:41:03 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration  of  HB  41. "An  Act  relating  to  sport  fishing                                                               
services, sport fishing operators,  and sport fishing guides; and                                                               
providing for  an effective  date." [CSHB  41(FIN) AM  was before                                                               
the committee.]                                                                                                                 
                                                                                                                                
2:41:24 PM                                                                                                                    
REPRESENTATIVE CATHY TILTON, Sponsor of  HB 41, explained that HB                                                               
41 seeks  to re-establish  the sport  fishing guide  and operator                                                               
licenses  which sunsetted  on December  31, 2014.  This licensure                                                               
was   originally  adopted   by  the   legislature  in   2004  and                                                               
implemented by the  Department of Fish and Game  (ADF&G) in 2005.                                                               
These licenses help  to mitigate unmanaged growth  of the charter                                                               
fishing  sector  while ensuring  a  basic  level of  professional                                                               
certification for  individuals who serve the  guided recreational                                                               
fishing public.                                                                                                                 
                                                                                                                                
In re-establishing  HB 41,  the existing  fee structure  has been                                                               
amended making  the program revenue positive.  The legislation is                                                               
not meant  to single out any  sector of the fishing  industry, it                                                               
is simply  to continue  the program that  was already  in effect.                                                               
The  bill  reestablishes the  licenses  that  have benefited  the                                                               
guided  sport  fishing  industry   and  the  general  public  and                                                               
increases  the revenue  necessary to  establish and  maintain the                                                               
electronic logbook  program that  assists in  critical management                                                               
decisions.                                                                                                                      
                                                                                                                                
SENATOR STEVENS asked how much the fees would be increased.                                                                     
                                                                                                                                
REPRESENTATIVE TILTON replied the fees would double.                                                                            
                                                                                                                                
CHAIR COSTELLO asked  if there is any opposition to  the bill and                                                               
who is on record supporting the legislation.                                                                                    
                                                                                                                                
2:44:30 PM                                                                                                                    
KEITH  HILYARD,  Staff,  Representative Cathy  Tilton,  explained                                                               
that  one   person  testified  in  House   Finance  suggesting  a                                                               
qualified  amendment for  HB 41  pertaining to  federal fisheries                                                               
management and a  guide from MatSu wrote a  letter in opposition.                                                               
Supporting letters  have come from  several charter  operators in                                                               
Juneau,  the Southeast  Alaska Guides  organization, and  several                                                               
charter  operators have  testified  in support  of  the bill.  He                                                               
described the  charter industry as generally  supportive although                                                               
the salt water guides feel  more urgency than fresh water guides.                                                               
He  noted that  amendments that  passed on  the House  floor were                                                               
trying  to be  responsive to  concerns brought  forward by  fresh                                                               
water guides.                                                                                                                   
                                                                                                                                
CHAIR   COSTELLO  asked   him  to   summarize  the   House  floor                                                               
amendments.                                                                                                                     
                                                                                                                                
MR. HILYARD explained that the  requirement that a person holding                                                               
a  sport fishing  guide or  operator's license  must also  have a                                                               
Coast Guard  license was  removed from Section  4, page  3, lines                                                               
10-19. This was  done because it placed an undue  burden on fresh                                                               
water  guides in  Interior Alaska  where navigable  waters aren't                                                               
determined and thus  a Coast Guard license  isn't needed. Second,                                                               
the sunset date in Section 11  was changed from ten years to five                                                               
years.                                                                                                                          
                                                                                                                                
2:47:45 PM                                                                                                                    
CHAIR  COSTELLO  asked  him  to  review  the  electronic  logbook                                                               
program.                                                                                                                        
                                                                                                                                
MR.  HILYARD explained  that ADF&G  has  discussed an  electronic                                                               
logbook  for years.  It  would  aid in  the  data collection  and                                                               
analysis. The  paper logbook is used  to help both the  state and                                                               
federal  fisheries   managers  make  allocation   decisions.  The                                                               
revenue stream  associated with the  increase would  help support                                                               
the establishment  and maintenance  of an electronic  logbook. He                                                               
offered his  understanding that ADF&G  intends to do a  beta test                                                               
in the Kenai River area this summer.                                                                                            
                                                                                                                                
SENATOR MEYER asked when the sunset occurs.                                                                                     
                                                                                                                                
MR. HILYARD replied it's 2021.                                                                                                  
                                                                                                                                
CHAIR COSTELLO asked Mr. Mulligan  to expand on the discussion of                                                               
the electronic logbook program.                                                                                                 
                                                                                                                                
2:49:36 PM                                                                                                                    
BEN MULLIGAN, Legislative Liaison,  Alaska Department of Fish and                                                               
Game (ADF&G), explained  that the infrastructure to  get the beta                                                               
test in place is part  of an overall electronic modernization CIP                                                               
project the department received  through the budget several years                                                               
ago. The  program will  be expanded depending  on the  success of                                                               
the beta test, but it is a priority.                                                                                            
                                                                                                                                
CHAIR  COSTELLO asked  if the  department has  a position  on the                                                               
bill.                                                                                                                           
                                                                                                                                
MR.  MULLIGAN stated  that the  department  supports getting  the                                                               
program back into place.                                                                                                        
                                                                                                                                
2:51:39 PM                                                                                                                    
TOM BROOKOVER,  Acting Director,  Division of Sport  Fish, Alaska                                                               
Department of Fish  and Game (ADF&G), stated  that the electronic                                                               
logbook  program   is  a  continuing   element  of   the  license                                                               
modernization  effort.  He  reported that  the  online  licensing                                                               
store was launched about a month  ago and the division is looking                                                               
at  two elements  to further  that initiative.  One is  to enable                                                               
personal use  permitting and reporting capabilities  for the Cook                                                               
Inlet  and  Chitna personal  use  fisheries.  Second is  a  pilot                                                               
program  on  the Kenai  for  an  electronic logbook  program  for                                                               
charter boats.  He related that  the department  anticipates full                                                               
implementation  in  the  next  year  or  two.  He  confirmed  Mr.                                                               
Mulligan's statement that the department supports HB 41.                                                                        
                                                                                                                                
2:54:10 PM                                                                                                                    
CHAIR COSTELLO opened public testimony.                                                                                         
                                                                                                                                
2:54:31 PM                                                                                                                    
DICK  ROHRER, representing  himself, Kodiak,  Alaska said  he has                                                               
been a  big game  guide since  the early 1970s  and a  sport fish                                                               
guide since  the early 1980s,  and HB 41  potentially jeopardizes                                                               
his  sport fish  guiding license.  He directed  attention to  the                                                               
penalty section on page 5, lines  22-30. He read the provision in                                                               
subsection (c)  and submitted that the  penalties are potentially                                                               
far too severe in cases where  the logbook report is not received                                                               
by  ADF&G in  a timely  manner. He  suggested inserting  the word                                                               
"intentionally"  on line  22 to  clarify that  the provision  and                                                               
penalty targets  a person who  knowingly and  intentionally fails                                                               
to meet  the deadline.  He explained  that for  logbook reporting                                                               
purposes the week  runs Monday to Sunday. Any  activity on Sunday                                                               
would have to be submitted to  fish and game the following Monday                                                               
or the  guide is in violation  of subsection (c). The  penalty is                                                               
very severe if that happens more than once.                                                                                     
                                                                                                                                
MR. ROHRER  highlighted that the logbook  program largely relates                                                               
to charter boat operators that are  in and out of town every day.                                                               
That  is  not   the  case  for  guides   that  operate  remotely,                                                               
particularly guides  operating in Interior areas  and/or big game                                                               
guides that have a client who  wants to do incidental fishing. He                                                               
provided an  example to illustrate  the timing  difficulties that                                                               
remote guides face.   He flies a bear hunting  client to his camp                                                               
on Kodiak  Island on Saturday April  18 for a two  week hunt. The                                                               
client does  incidental fishing on  Saturday and Sunday  April 18                                                               
and 19 so  the logbook report for that incidental  fishing is due                                                               
on April 27.  The client isn't flying  back until May 2  so he as                                                               
the guide has to  charter a plane at a cost of  $1,000 to pick up                                                               
that logbook report.                                                                                                            
                                                                                                                                
MR.  ROHRER  pointed out  that  legislation  that was  considered                                                               
several  years  relating  to  the  sport  fish  guiding  industry                                                               
included an exemption clause for  big game guides who had clients                                                               
that did incidental sport fishing  while on a contracted big game                                                               
hunt. He  suggested that  the exemption  is appropriate  in these                                                               
circumstances.                                                                                                                  
                                                                                                                                
2:59:40 PM                                                                                                                    
CHAIR COSTELLO announced  that she would hold HB  41 in committee                                                               
with public testimony open.                                                                                                     
                                                                                                                                
2:59:49 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Costello  adjourned the Senate Labor  and Commerce Standing                                                               
Committee meeting at 2:59 p.m.                                                                                                  

Document Name Date/Time Subjects
HB 149 am - Sponsor Statement.pdf SL&C 4/9/2015 1:30:00 PM
SL&C 4/14/2015 1:30:00 PM
HB 149
HB 26 - Fiscal Note DCCED.pdf SL&C 4/14/2015 1:30:00 PM
HB 26
HB 26 - Hearing Request.pdf SL&C 4/14/2015 1:30:00 PM
HB 26
HB 26 - Sponsor Statement.pdf SL&C 4/14/2015 1:30:00 PM
HB 26
HB 26 - Supporting Documents - Legislative Audit 6-30-2014.pdf SL&C 4/14/2015 1:30:00 PM
HB 26
HB 26 - Ver. A.pdf SL&C 4/14/2015 1:30:00 PM
HB 26
HB 41 - Fiscal Note F&G 2.pdf SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 - Fiscal Note F&G.pdf SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 - Fiscal Note LAA.pdf SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 - Support Cummings.pdf SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 - Support Haney.pdf SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 - Support JCBOA.pdf SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 - Support Lost in AK.pdf SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 - Support Rum Runners.pdf SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 - Support SEAGO.pdf SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 - Ver. P.A.pdf SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 Explanation of Changes Version P.A.PDF SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 Sectional Analysis (FIN)am.pdf SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 Sport Fish Sponsor Statement P.A.PDF SL&C 4/14/2015 1:30:00 PM
HB 41
HB 46 - Fiscal Note DMVA.pdf SL&C 4/14/2015 1:30:00 PM
HB 46
HB 46 - Fiscal Note DOLWD.pdf SL&C 4/14/2015 1:30:00 PM
HB 46
HB 46 - Senate Labor & Commerce Hearing Request.pdf SL&C 4/14/2015 1:30:00 PM
HB 46
HB 46 - Sponsor Statement.pdf SL&C 4/14/2015 1:30:00 PM
HB 46
HB 46 - Supporting Documents - Email from Douglas Bowers.pdf SL&C 4/14/2015 1:30:00 PM
HB 46
HB 46 - Supporting Documents - Email from Mr. Russ Black - SFAC Director JBER.pdf SL&C 4/14/2015 1:30:00 PM
HB 46
HB 46 - Supporting Documents - Letter from CH2M Hill.pdf SL&C 4/14/2015 1:30:00 PM
HB 46
HB 46 - Supporting Documents - Resolution from Alaska Veterans Advisory Council.pdf SL&C 4/14/2015 1:30:00 PM
HB 46
HB 46 - Supporting Documents-Letter Russ Black SFAC Director JBER.pdf SL&C 4/14/2015 1:30:00 PM
HB 46
HB 46 - Version A.pdf SL&C 4/14/2015 1:30:00 PM
HB 46
HB 116 - Fiscal Note DCCED.pdf SL&C 4/14/2015 1:30:00 PM
HB 116
HB 116 - Sponsor Statement.pdf SL&C 4/14/2015 1:30:00 PM
HB 116
HB 116 - Supporting Documents - Legislative Audit 05-30-14.pdf SL&C 4/14/2015 1:30:00 PM
HB 116
HB 116 - Ver. A.pdf SL&C 4/14/2015 1:30:00 PM
HB 116
HB 178 - Fiscal Note DOLWFD.pdf SL&C 4/14/2015 1:30:00 PM
HB 178
HB 178 - Sectional Analysis Ver R.pdf SL&C 4/14/2015 1:30:00 PM
HB 178
HB 178 - Sponsor Statement.pdf SL&C 4/14/2015 1:30:00 PM
HB 178
HB 178 - Supporting Documents-HB316 enacted in 2014.PDF SL&C 4/14/2015 1:30:00 PM
HB 178
HB 316
HB 178 - Ver. H.PDF SL&C 4/14/2015 1:30:00 PM
HB 178