Legislature(2021 - 2022)BELTZ 105 (TSBldg)
02/28/2022 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB174 | |
| SB190 | |
| SB193 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 174 | TELECONFERENCED | |
| *+ | SB 190 | TELECONFERENCED | |
| *+ | SB 193 | TELECONFERENCED | |
| *+ | SB 185 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
February 28, 2022
1:32 p.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Joshua Revak, Vice Chair
Senator Gary Stevens
Senator Elvi Gray-Jackson
MEMBERS ABSENT
Senator Peter Micciche
COMMITTEE CALENDAR
SENATE BILL NO. 174
"An Act relating to dress codes and natural hairstyles."
- HEARD & HELD
SENATE BILL NO. 190
"An Act extending the termination date of the Regulatory
Commission of Alaska; and providing for an effective date."
- HEARD & HELD
SENATE BILL NO. 193
"An Act extending the termination date of the Board of
Chiropractic Examiners; and providing for an effective date."
- HEARD & HELD
SENATE BILL NO. 185
"An Act relating to exemptions from minimum wage."
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: SB 174
SHORT TITLE: ALLOW NATURAL HAIRSTYLES
SPONSOR(s): SENATOR(s) WILSON
02/01/22 (S) READ THE FIRST TIME - REFERRALS
02/01/22 (S) EDC, L&C
02/16/22 (S) EDC AT 9:00 AM BUTROVICH 205
02/16/22 (S) Heard & Held
02/16/22 (S) MINUTE(EDC)
02/23/22 (S) EDC AT 9:00 AM BUTROVICH 205
02/23/22 (S) Moved CSSB 174(EDC) Out of Committee
02/23/22 (S) MINUTE(EDC)
02/25/22 (S) EDC RPT CS 1DP 4NR SAME TITLE
02/25/22 (S) DP: HOLLAND
02/25/22 (S) NR: HUGHES, STEVENS, BEGICH, MICCICHE
02/28/22 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 190
SHORT TITLE: EXTEND REGULATORY COMMISSION OF ALASKA
SPONSOR(s): SENATOR(s) MYERS
02/15/22 (S) READ THE FIRST TIME - REFERRALS
02/15/22 (S) L&C, FIN
02/28/22 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 193
SHORT TITLE: EXTEND BOARD OF CHIROPRACTIC EXAMINERS
SPONSOR(s): SENATOR(s) MICCICHE
02/15/22 (S) READ THE FIRST TIME - REFERRALS
02/15/22 (S) L&C, FIN
02/28/22 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
SENATOR DAVID WILSON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 174.
JASMINE MARTIN, Staff
Senator David Wilson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the sectional analysis for SB 174
on behalf of the sponsor.
ROSALYN WYCHE, representing self
Anchorage, Alaska
POSITION STATEMENT: Provided invited testimony in support of SB
174.
ALYSSA QUINTYNE, Interior Community Organizing Manager
The Alaska Center
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 174.
HANNAH FLOR, representing self
Petersburg, Alaska
POSITION STATEMENT: Provided invited testimony in support of SB
174.
SENATOR ROBERT MYERS
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 190
DAWSON MANN, Staff
Senator Robert Meyers
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the sectional analysis for SB 190
on behalf of the sponsor.
KRIS CURTIS, Legislative Auditor
Legislative Audit Division
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the sunset audit report for the
Regulatory Commission of Alaska during the hearing on SB 190.
BOB PICKETT, Chair
Regulatory Commission of Alaska
Department of Commerce, Community and Economic Development
Palmer, Alaska
POSITION STATEMENT: Provided information and answered questions
about the Regulatory Commission of Alaska during the hearing on
SB 190.
KEITH KURBER, Commissioner
Regulatory Commission of Alaska
Department of Commerce, Community and Economic Development
Palmer, Alaska
POSITION STATEMENT: Commented on the Regulatory Commission of
Alaska workload during the hearing on SB 190.
KONRAD JACKSON, Staff
Senator Peter Micciche
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided introductory comments on SB 193 on
behalf of the sponsor.
MADISON GOVIN, Staff
Senator Peter Micciche
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced SB 193 on behalf of the sponsor.
KRIS CURTIS, Legislative Auditor
Division of Legislative Audit
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the sunset audit report during the
hearing on SB 193.
BRIAN LARSON, Chair
Board of Chiropractic Examiners
Department of Commerce, Community and Economic Development
Palmer, Alaska
POSITION STATEMENT: Answered questions during the hearing on SB
193.
SARA CHAMBERS, Director
Division of Corporations, Business, and Professional Licensing
Department of Commerce, Community and Economic Development
Juneau, Alaska
POSITION STATEMENT: Answered questions and provided information
during the hearing on SB 193.
ACTION NARRATIVE
1:32:36 PM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 1:32 p.m. Present at the call to
order were Senators Gray-Jackson, Stevens, and Chair Costello.
Senator Revak arrived soon thereafter.
SB 174-ALLOW NATURAL HAIRSTYLES
1:33:03 PM
CHAIR COSTELLO announced the consideration of SENATE BILL NO.
174 "An Act relating to dress codes and natural hairstyles."
1:33:34 PM
SENATOR DAVID WILSON, Alaska State Legislature, Juneau, Alaska,
sponsor of SB 174, introduced the legislation with a summary of
the sponsor statement that read as follows:
[Original punctuation provided.]
Senate Bill 174 prohibits schools and employers from
adopting dress codes which disallow students or
employees from wearing their hair in styles that are
commonly associated with race, are a natural or
protective style, or require a student to permanently
or semi-permanently alter their natural hair.
No employee or student should be prohibited from
participating in work or attending a public school
because they will not alter their natural hair. People
of color and ethnic descent are deprived of
educational and work opportunities because they are
adorned with natural or protective hairstyles.
Workplace dress code and grooming policies that
prohibit natural hair, including afros, braids,
twists, and locks, have a disparate impact on people
of color; these polices are more likely to burden or
punish them. People of color, especially Black women,
are targeted disproportionately by workplace and
school dress codes.
People choose to wear their hair as they do for a
variety of intertwined reason, including cultural
connectedness and tradition, protection of hair
texture and growth, or simply preference. Whatever the
reason, hairstyles have absolutely no correlation to
professionalism or work performance.
Senate Bill 174 defines what standards are
unacceptable for school districts and employers to
place on hair. This legislation still allows for the
restriction of hairstyles based on health and safety
laws and regulation. Thank you for your consideration.
I respectfully ask for your support of this
legislation.
SENATOR WILSON noted a question from the previous committee and
explained that the bill does not change any workplace standards.
It simply prohibits discrimination based on a person's style of
hair. He deferred to his staff to provide the sectional
analysis.
1:34:44 PM
JASMINE MARTIN, Staff, Senator David Wilson, Alaska State
Legislature, Juneau, Alaska, presented the sectional analysis
for SB 174:
[Original punctuation provided.]
Section 1: Adds a new section (.135. Dress code;
natural hairstyles) to AS 14.03 (Title 14. Education,
Libraries, and Museums, 03. Public Schools Generally)
This section disallows a school district from adopting
a school dress code that prohibits a student from
wearing a hairstyle that is commonly or historically
associated with race, wearing a natural hairstyle
regardless of the student's hair texture or type, or
that requires a student to permanently or semi-
permanently alter their natural hair.
This bill makes an exception to allow school districts
to restrict hairstyles in any way necessary to comply
with health or safety laws.
Section 2: Adds a new section (.450. Dress code;
natural hairstyles) to AS 23.10 (Title 23. Labor and
Workers Compensation 10. Employment Practices and
Working Conditions)
This section is identical to section 1, except it
deals with an employee and employer relationship
rather than school and students.
1:35:42 PM
SENATOR REVAK joined the committee.
SENATOR STEVENS said he liked the bill and then commented on
pant fashions.
SENATOR WILSON noted that the bill had nothing to do with pant
fashions and agreed that some were foolish.
1:36:41 PM
CHAIR COSTELLO asked for the genesis of the bill.
SENATOR WILSON explained that it addresses one of the unspoken
issues that people of color have had to endure in silence.
Policies and dress codes have been established that discriminate
against natural hairstyles. He noted that 14 states had passed
similar legislation outlawing this sort of discrimination. He
related that his office had heard from a broad range of people
affected by such discriminatory policies. He cited examples of
parents being told they should straighten the hair of their
children of color because it looked "nappy," unkempt, or
unclean. He suggested that the invited testifiers could probably
provide real life examples.
CHAIR COSTELLO referenced the language on page 1, lines 9-10
that outlines the definition of "natural hairstyle." She asked
how that definition came about and whether it included
everything that might need to be included.
SENATOR WILSON replied the language does not include all
examples, although the definition was amended in the previous
committee to include additional examples from the Colorado
legislation.
1:39:17 PM
MS. MARTIN highlighted that the bill includes examples but they
are not all-inclusive.
1:39:37 PM
CHAIR COSTELLO turned to invited testimony.
1:39:51 PM
ROSALYN WYCHE, representing self, Anchorage, Alaska, stated that
she has been doing hair professionally since 1980. She owns a
salon and beauty school. "Teaching is my passion and in my
blood," she said. She related that a number of her clients have
adopted children of color and have asked for help with their
kids hair because they didn't know how to style it.
MS. WYCHE recounted that authority figures in Anchorage schools
told her sons that corn rows were not the right fit for
participation on some teams and they needed to cut it, whereas
the boy with a mullet hair cut wasnt questioned. When her
daughters wore corn rows they were told their hair was not
girly. She also recalled the time that her daughter wore a pink
bandana on a "bad hair day" and was told to remove it. She
complied and then was told to call her mother to take her home
because her hair was unacceptable. Ms. Wyche related that she
was talking to the counselor about the situation when she
noticed three boys wearing cowboy hats and trench coats walk by.
When she noted the discriminatory irony, he shrugged and said he
didn't make the rules.
MS. WYCHE said that sort of discrimination continues into the
third generation in some Anchorage schools. Just recently her
granddaughter was told she could not wear anything on her head
unless it had a religious affiliation. She said this is
upsetting because it is a double standard. She stressed that
there should not be blanket prohibitions against cultural
hairstyles. She expressed her extreme appreciation that Senator
Wilson introduced the bill that will help to end discrimination
based on natural hair styles. She concluded her comments by
relaying the story of a parent calling to thank a teacher for
telling her daughter that her short very curly hair was
beautiful.
SENATOR REVAK said he did not want to hinder efforts to prevent
gang activity, but he would like more information on current
dress codes in Anchorage schools regarding headdress and
bandanas.
1:46:45 PM
MS. MARTIN explained that every school in the state adopts dress
codes that are unique to the school. Many reference bandanas and
some specifically mention the colors red or blue, but not pink.
She said she did not believe the bill would prevent a school
from prohibiting certain colors from being worn, but it does
prevent a blanket prohibition against wearing a head wrap.
SENATOR REVAK said that helps. He reiterated that he did not
want to hinder schools from protecting students from gang
activity.
CHAIR COSTELLO said the committee could invite school officials
to testify if the members were interested in that.
1:47:59 PM
ALYSSA QUINTYNE, Interior Community Organizing Manager, The
Alaska Center, Fairbanks, Alaska shared that because of her
natural hair style she has been harassed, teased, had her hair
pulled, burned and cut. She has also been the recipient of
inappropriate questions and comments from students, teachers,
coworkers, supervisors, and employers. It is what the sponsor
said, we suffer in silence because there is nobody to talk to
about this inappropriate behavior, she said.
MS. QUINTYNE related that The Alaska Center is the only
workplace where she has not experienced hair discrimination. By
contrast, two places in the Interior instituted policies that
banned her hairstyles after she started to work. Things
typically started with inappropriate and uninformed questions
from coworkers about the hair of people of color. Supervisors
followed up with the same type of questions and she was
eventually pulled into the office where people tried to measure
her braids or touch her hair. As things escalated, she
maintained the attitude that this was inappropriate behavior and
that she would continue to wear her natural hairstyles unless
corporate had a policy against it. In another work place, human
resources got involved and wrote a policy that required her to
straighten her hair or leave.
MS. QUINTYNE stated that when she was on the diversity committee
for the Fairbanks North Star Borough School District, she
specifically worked to rephrase parts of the dress code to
clarify that associating what students wear on their head,
including a bonnet, durag, head scarf, or head wrap, has nothing
to do with gang activity. Rather, it demonstrates a
misunderstanding of gangs in this country and it stereotypes
children of color.
MS. QUINTYNE concluded her testimony stating that dress codes
and safety protocols exist for a reason and Black people and
people of color have never had an issue complying. The issue is
when employers make assumptions about employees of color based
on stereotypes and discern hostility, gang activity, and a lack
of professionalism. SB 174 protects people of color from these
microaggressions.
1:56:31 PM
CHAIR COSTELLO thanked her for the heartfelt and illuminating
testimony.
SENATOR REVAK expressed appreciation for the testimony.
1:57:34 PM
CHAIR COSTELLO opened public testimony on SB 174.
1:57:49 PM
HANNAH FLOR, representing self, Petersburg, Alaska, stated that
she is White and the adoptive mother of a Black preschool age
daughter. She absolutely wants her daughter to have the freedom
to wear her hair in whatever way makes her feel good about
herself, just like her White classmates. Speaking to the utility
of natural hairstyles, she admitted she initially did not know
how to care for her daughter's hair or understand how Black
hairstyles protect the hair. Ms. Flor said her efforts to learn
about Black hairstyles helped forge a better mother-daughter
bond and helped her daughter feel better about herself.
2:00:11 PM
CHAIR COSTELLO discerned that nobody else wished to comment and
closed public testimony on SB 174.
She held SB 174 in committee for further consideration.
2:00:33 PM
At ease
SB 190-EXTEND REGULATORY COMMISSION OF ALASKA
2:01:44 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of SENATE BILL NO. 174 "An Act relating to dress
codes and natural hairstyles."
2:02:16 PM
SENATOR ROBERT MYERS, Alaska State Legislature, Juneau, Alaska,
sponsor of SB 190 introduced the legislation by paraphrasing the
sponsor statement that read as follows:
[Original punctuation provided.]
The Senate Bill 190 extends the termination date of
the Regulatory Commission of Alaska (RCA) until June
30, 2030, in accordance with the recommendation of the
Legislative Auditor.
The Regulatory Commission of Alaska is an independent,
quasi-judicial regulatory body that was formed by the
legislature in 1999 to replace the Alaska Public
Utilities Commission. The RCA is charged with
regulating public utilities and pipeline services.
Regulation is accomplished by certifying qualified
providers and ensuring they provide safe and adequate
services and facilities at just and reasonable rates,
terms, and conditions.
2:03:20 PM
DAWSON MANN, Staff, Senator Robert Meyers, Alaska State
Legislature, Juneau, Alaska, presented the following sectional
analysis for SB 190:
[Original punctuation provided.]
Section 1: AS 44.66.010(a)(3) Page 1, Lines 4-6
This section extends the termination date for the
Regulatory Commission of Alaska (RCA) until June 30,
2030.
Section 2: Page 1, Line 7
This section establishes an immediate effective date.
CHAIR COSTELLO invited Kris Curtis to walk through the sunset
audit for the RCA.
2:04:25 PM
KRIS CURTIS, Legislative Auditor, Legislative Agencies and
Offices, Legislative Audit Division, Alaska State Legislature,
Juneau, Alaska, directed attention to the 9/21/2021 sunset audit
summary of the Regulatory Commission of Alaska in members'
packets. She stated that the audit concluded that the RCA
operated in an effective manner and served the public's interest
by:
• assessing the capabilities of utility and
pipeline companies to safely serve the public;
• evaluating tariff s and charges made by regulated
entities;
• verifying the pass-through charges to consumers
from electric and natural gas utilities;
• adjudicating disputes between ratepayers and
regulated entities;
• providing consumer protection services; and
• performing financial reviews of utilities for the
State's power cost equalization program.
MS. CURTIS stated that the audit recommended the legislature
extend the termination date of the commission for eight years,
which is the maximum allowed in statute.
She directed attention to page 19 that shows the responses to
the survey the division sent to 188 individuals who were a party
to a docket or tariff from July 2017 through February 2021. The
division received 59 responses.
2:05:40 PM
At ease
2:05:52 PM
CHAIR COSTELLO reconvened the meeting.
MS. CURTIS recounted the following from Appendix B: 49 percent
of survey respondents reported being satisfied or very satisfied
with RCA's services, while 14 percent disagreed or strongly
disagreed; 67 percent of respondents believe the commission
often or always meets its statutory timelines when carrying out
its duties while 7 percent believe the commission rarely or
never met its statutory timelines; and 66 percent of respondents
agreed or strongly agreed the commission effectively
communicated when providing services while 13 percent disagreed
or strongly disagreed. She highlighted that the color coded bar
graph clearly shows that a majority of respondents viewed the
RCA in either a positive or neutral light.
MS. CURTIS directed attention to the last paragraph on page 4 of
the report that says the audit concluded that the Regulatory
Commission of Alaska resolved most consumer complaints within 30
days. She noted that while there is no statutory timeline for
resolving consumer complaints, it is an internal performance
measure. She noted that on page 5, Exhibit 3 summarizes the
types of consumer complaints filed with RCA from July 1, 2020
through February 28, 2021. She also noted the conclusion on page
4 that says RCA processed tariff filings and dockets within
statutory/regulatory timelines.
2:07:34 PM
MS. CURTIS stated that the audit made one recommendation
regarding the RCA regulation that requires the commission to
hold meetings twice a month. When there are no agenda items, the
meetings may be canceled by management. During the audit, 25 of
88 scheduled meetings were canceled, and there were six
instances when consecutive meetings were canceled. According to
RCA management, regulations allow the commission to modify or
waive a regulatory requirement with a motion. The caveat is that
it must be an official motion and the audit determined that
meetings were being canceled without an official motion. The
audit encouraged clarification of the regulation. She said it is
a simple administrative fix and not significant in terms of the
extension.
MS. CURTIS reported that the responses to the audit begin on
page 23. Both the commissioner of the Department of Commerce,
Community and Economic Development (DCCED) and the chair of the
Regulatory Commission of Alaska supported the maximum eight-year
extension.
2:08:45 PM
CHAIR COSTELLO asked if there was a written response to the
division's recommendation.
MS. CURTIS answered yes, RCA agreed to clarify the regulation
and that response appears on page 25.
CHAIR COSTELLO asked her to mention the number of individuals on
the board, the length of their terms, and their salaries. She
offered her understanding that this is a fulltime board.
2:09:26 PM
MS. CURTIS stated that the organization of the board is
discussed on pages 1 and 2 of the audit. She suggested the board
chair could discuss compensation because that is not discussed.
She paraphrased the second paragraph on page 2 that delineates
the makeup of the board.
RCA consists of five commissioners. The commissioners
are appointed by the governor, confirmed by the
legislature for six-year terms, and must either be a
member of the Alaska Bar Association or have a degree
in engineering, finance, economics, accounting,
business administration, or public administration from
an accredited university. RCA commissioners as of
March 2021 are listed in Exhibit 2.
CHAIR COSTELLO asked her to repeat the number of meetings that
were canceled during the audit period.
MS. CURTIS restated that 88 meetings were scheduled from July
2017 through February 2021; 25 of those meetings were canceled
and in six instances the cancelations were consecutive. The
argument was that there were no agenda items to address. While
this was reasonable, the regulation technically requires the
meeting to be held. The audit suggested clarifying the
regulation.
SENATOR STEVENS asked if the commission had a history of
receiving the maximum eight year renewals.
MS. CURTIS replied that the commission received an eight-year
extension in the prior 2013 sunset audit. Before that the
commission received several shorter extensions. She noted that
the division is also required to audit RCA's annual report every
other year, which means the division has quite a lot of contact
with the agency looking at compliance with the statutory
regulatory timelines.
SENATOR STEVENS commented on the value of the legislature
keeping abreast and wondered whether an eight-year extension was
too long. He pointed out that a legislator could conceivably
serve two terms in the Senate or [four] terms in the House and
never consider an RCA sunset audit. He asked for her thoughts.
2:12:24 PM
MS. CURTIS agreed that a legislator could serve for eight years
and never have the opportunity to consider a sunset audit for
RCA, then pointed out that the commission sends an annual report
to the legislature. She noted that over the years, the greatest
interest has been whether the agency is complying timely with
its statutory timelines. She said compliance has been good over
the last two sunsets, but acknowledged that the length of the
extension was a policy call for the legislature.
SENATOR STEVENS asked what the disadvantage would be to RCA to
have a shorter extension.
MS. CURTIS replied there would be no negative connotation and a
shorter extension would be warranted if legislators were
interested in keeping a closer eye on the organization. She
offered her perspective as the auditor that a shorter extension
is recommended when the structure or the laws governing the
organization have changed.
SENATOR STEVENS asked her to confirm that a shorter extension
would not add to the division's workload.
MS. CURTIS clarified that it would increase the division's
workload to conduct audits more frequently. More resources would
be used and there would be an associated cost.
2:14:51 PM
CHAIR COSTELLO noted that three RCA commissioners were listening
to the meeting online. She asked whether the infrastructure bill
and the forthcoming federal funding would affect the Regulatory
Commission of Alaska, particularly related to
telecommunications.
MS. CURTIS deferred the question to an RCA commissioner.
CHAIR COSTELLO asked Bob Pickett to respond to her question
about the impact of the infrastructure bill and Senator Steven's
question about a shorter extension.
2:16:02 PM
BOB PICKETT, Chair, Regulatory Commission of Alaska, Department
of Commerce, Community and Economic Development, Palmer, Alaska,
stated that he had been a commissioner since 2008 and chair for
the last nine years. Regarding the question about the
infrastructure bill and the potential federal funding, he said
the commission will be affected depending on what the recipient
organization does with the funding. In response to Senator
Stevens question, he said he had been through three sunset
audits for the commission. The one in about 2010 recommended
reducing the extension from four years to two years and that did
impact the agency. To the observation that many legislators
would not have much interaction with the commission, he pointed
out that the commission had actively communicated with
legislators, answered questions, and provided answers over the
last few years during the deregulation of telecommunications.
MR. PICKETT added that in 2014, the legislature directed the
commission to evaluate the status of the Railbelt electric
system and provide recommendations about the appropriate course
forward. The commission consulted extensively with the affected
utilities and the Alaska Energy Authority (AEA) and submitted a
report to the legislature in January 2020 that led to passage of
SB 123 and the establishment of an Electric Reliability
Organization. He noted that because Alaska is not under the
jurisdiction of either FERC or NERC, the state essentially had
no enforceable reliability standard, including cybersecurity and
fiscal security. He said the regulations for the ERO go into
effect on March 11, 2022, and the commission will continue to
provide the legislature with status reports.
2:19:08 PM
MR. PICKETT also reminded the committee that RCA works closely
with AEA on the Power Cost Equalization (PCE) program and looks
forward to making positive changes in the administration of that
program.
CHAIR COSTELLO asked him to respond to her earlier question
about the salary for RCA commissioners and the fact that this is
fulltime work as opposed to the voluntary or parttime nature of
most of Alaska's boards and commissions.
MR. PICKETT described the work as more than a full time job. He
said he was not comfortable reporting the salaries of other
commissioners but his salary is about $153,000 a year.
CHAIR COSTELLO said she wanted the public to know that RCA is
not a parttime board and the docket is robust. She asked him to
describe some of the work the commission does and the amount of
time that is devoted to each case.
MR. PICKETT said it varies. The two largest dockets in the last
two years were the transfer of British Petroleum assets to
Harvest, and the acquisition of Anchorage Municipal Light and
Power assets by Chugach Electric. The former included the Trans
Alaska Pipeline and several North Slope pipelines and the latter
included a share of the Beluga River gas field. The transfer of
each of those certificates took more than a year because they
involved lots of research and discussion among commissioners
about the right course. The process to develop the Electric
Reliability Organization took seven years and developing the
regulations in a truncated one-year was very challenging for the
commission. He predicted that implementing the regulations and
getting the ERO running would also present challenges this next
year.
CHAIR COSTELLO asked if all the members of the commission were
located in Anchorage.
MR. PICKETT replied that he lives in the MatSu Valley,
commissioner Kurber lives in Fairbanks, and the other three
commissioners live in Anchorage.
CHAIR COSTELLO asked Kristin Schubert, Commission Section
Manager for the Regulatory Commission of Alaska if she wanted to
respond to any of the questions the committee articulated.
2:23:40 PM
KRISTIN SCHUBERT said she was available to answer specific
questions about the Regulatory Commission of Alaska.
CHAIR COSTELLO asked Commissioner Keith Kurber if he wanted to
respond to any of the questions the committee articulated.
2:24:00 PM
KEITH KURBER, Commissioner, Regulatory Commission of Alaska,
Department of Commerce, Community and Economic Development,
Palmer, Alaska, stated that Chair Pickett very adequately
addressed the questions. He continued to say that he had been on
the commission for a year and had found the workload demanding
but possible to accomplish because of outstanding staff. He
agreed with the chair's comments about the ERO.
2:25:28 PM
CHAIR COSTELLO opened public testimony on SB 190; finding none,
she closed public testimony.
CHAIR COSTELLO held SB 190 in committee for further
consideration.
SB 193-EXTEND BOARD OF CHIROPRACTIC EXAMINERS
2:25:57 PM
CHAIR COSTELLO announced the consideration of SENATE BILL NO.
193 "An Act extending the termination date of the Board of
Chiropractic Examiners; and providing for an effective date."
2:26:25 PM
KONRAD JACKSON, Staff, Senator Peter Micciche, Alaska State
Legislature, Juneau, Alaska, stated that SB 193 extends the
Board of Chiropractic Examiners for five years, as recommended
by the Division of Legislative Audit. He noted that sunset
audits were the legislature's opportunity to review how boards
are operating in the public interest and their statutory
capacity.
2:27:29 PM
MADISON GOVIN, Staff, Senator Peter Micciche, Alaska State
Legislature, Juneau, Alaska, introduced SB 193 paraphrasing the
following sponsor statement:
The Division of Legislative Audit reviewed the Board
of Chiropractic Examiners (BCE). The purpose of this
audit was to determine whether or not there is a
demonstrated public need for BCE's continued existence
and whether it has been operating in an effective
manner. As a result of this audit, our auditors
concluded that the board's termination date should be
extended until June 30, 2027.
Legislative Audit makes two new recommendations:
a. The Office of the Governor should appoint
board members in accordance with statute.
Currently, one public board member does not meet
the statutory requirements for appointment
b. The Department should continue efforts to
improve the investigative case management
system's integrity and confidentiality.
Additionally, they determined that the recommendations
from the prior sunset audit have been addressed.
I urge your support on this legislation to allow the
Board of Chiropractic Examiners to continue to carry
out their duties of effectively licensing and
regulating Chiropractors and to protect and promote
the public health, welfare, and safety of Alaskans.
CHAIR COSTELLO asked if the full extension allowed in statute
was five years.
MS. GOVIN answered no.
2:28:41 PM
CHAIR COSTELLO invited Kris Curtis to present the sunset audit.
2:28:51 PM
KRIS CURTIS, Legislative Auditor, Division of Legislative Audit,
Alaska State Legislature, Juneau, Alaska, directed attention to
the June 22, 2021 sunset audit summary of the Board of
Chiropractic Examiners in members' packets. She read the first
paragraph of the Report Conclusions found on page i of the
summary. It read:
Overall, the audit concluded that the board served the
public's interest by conducting meetings in accordance
with State laws, amending certain regulations to
improve the chiropractic profession, and effectively
licensing and regulating chiropractic physicians.
Additionally, the audit found one board member did not
meet statutory requirements for appointment and
additional resources were needed to investigate cases
in a timely manner.
MS. CURTIS stated that the audit recommends a five year
extension, which is three years less than the eight-year maximum
allowed in statute. She related that the shorter extension is
due to an issue the audit identified that may affect the board's
ability to protect the public. The audit has no details about
this issue because the investigation is ongoing.
MS. CURTIS directed attention to the standard information about
the board on pages 5 and 6. She related that as of January 31,
2021, there were 306 active licenses and permits for this board.
The schedule of annual revenues and expenditures on page 6 shows
that [from FY18 through January 31, 2021] the board alternated
between a deficit and a surplus. She noted that management of
the Division of Corporations, Business, and Professional
Licensing deemed the deficits within a reasonable range and did
not recommend a fee increase. She said the licensing fees are
listed on page 7.
2:30:33 PM
MS. CURTIS reviewed the two recommendations from the audit that
begin on page 9. Recommendation No. 1 is for the governor to
make board appointments in compliance with statutory
requirements. The audit found that the public board member was a
licensed (EMT), which violates the statutory requirement that
prohibits the public member from having a direct financial
interest in the health care field.
Recommendation No. 2, which starts on page 10, calls for the
director of the Division of Corporations, Business, and
Professional Licensing (DCBPL) to allocate sufficient resources
to ensure cases are investigated in a timely manner. The audit
reviewed the 11 cases that were open for more than 180 days
during the audit period. Seven of those cases were combined into
one case because they were related to the same chiropractor. In
that combined case, the audit found four periods of inactivity
that ranged from 55 days to 208 days. DCBPL investigative staff
reported that the inactivity was due to competing priorities and
insufficient resources.
2:31:35 PM
MS. CURTIS reviewed the response to the audit from DCCED that
starts on page 21 of the audit report. The commissioner stated
that the department hired two additional investigators and she
believes that will increase both the quality and timeliness of
investigations.
The governor's response appears on page 23. He agreed with
Recommendation No. 1 and reported that the board member who was
appointed outside the statutes was removed.
The response from the board starts on page 25. The board chair
did not agree with the five-year extension. He described the
shorter than full extension as an unfair penalty because the
issues raised in the findings were outside the board's purview.
He countered the audit recommendation and requested the board be
granted the full eight-year extension.
2:32:29 PM
CHAIR COSTELLO asked if she wanted to comment on the chair's
view that the less than maximum extension penalized the board.
MS. CURTIS said she had seen the perception by auditees the last
two years that the legislative oversight sunset audit was a
negative process and anything but a full statutory extension was
punitive. She said the division tries to explain that sunset
audits are an oversight mechanism to review the state of the
board. A shorter than full extension could be due to changes in
the law or that the board was reorganized and had new duties
that might affect the public. She reiterated that audits are
simply a legislative oversight mechanism.
CHAIR COSTELLO asked if there were statutes relating to
department oversight of the timeliness of investigations.
MS. CURTIS answered no; DCBPL has policies to encourage timely
investigations, but that division has been under a resource
crunch the last several years, which has resulted in continual
problems in its investigative process.
2:34:29 PM
SENATOR GRAY-JACKSON asked how long the individual who did not
meet the qualifications served on the board before being
removed.
MS. CURTIS asked the chair if she could consult the auditor
because she did not have that information.
2:34:52 PM
At ease
2:35:18 PM
CHAIR COSTELLO reconvened the meeting and explained that the
auditor would follow up with the information Senator Gray-
Jackson requested.
She asked Ms. Curtis to review the history of the audits for
this board, including whether shorter than full statutory
extensions had ever been recommended.
MS. CURTIS said the last sunset audit was conducted in 2013 and
the board received an eight-year extension that time. She did
not have information about earlier audits with her.
CHAIR COSTELLO turned to invited testimony on SB 193.
2:36:20 PM
DR. BRIAN LARSON, Chair, Board of Chiropractic Examiners,
Department of Commerce, Community and Economic Development
(DCCED), Palmer, Alaska, explained that the public member that
did not meet the statutory requirement for the position
appropriately resigned his commission when it came to light that
he was employed fulltime in the health care industry. Dr. Larson
offered his understanding that this was the second time in two
consecutive eight-year sunset audits that this had happened. The
investigative delays also occurred in that same consecutive
eight-year timeframe. He said it is difficult to see this
shortened extension as anything other than punitive because the
board does not evaluate board applicants and it has no say in
the investigative process.
2:40:00 PM
CHAIR COSTELLO said she understands what he is saying, but she
views sunset audits as an opportunity for the legislature to
review the activities the board conducts on behalf of Alaskans
served by the profession. She noted that the audit also included
a review of the Division of Corporations, Business, and
Professional Licensing and Sara Chambers would be up next to
talk about the challenges the division faced with those
investigations. She thanked Dr. Larson and his colleagues for
the work they do and restated that sunset audits provide an
opportunity for the legislature to look at the entire profession
on behalf of the public. It is an opportunity to talk about
successes and the challenges facing the board.
CHAIR COSTELLO asked Sara Chambers to talk about the audit with
particular focus on investigations.
2:41:52 PM
SARA CHAMBERS, Director, Division of Corporations, Business, and
Professional Licensing, Department of Commerce, Community and
Economic Development (DCCED), Juneau, Alaska, agreed with Chair
Costello that sunset audits are a necessary process. She offered
to talk about the audit findings or answer specific questions.
SENATOR STEVENS said he did not have any questions related to
the Board of Chiropractic Examiners, but he would like to
discuss the Regulatory Commission of Alaska (RCA) outside of
this meeting.
MS. CHAMBERS advised that RCA was outside her professional
purview. She deferred questions to Chair Pickett or another
commissioner.
CHAIR COSTELLO asked her to talk about what the fees have been
for this board historically and whether this investigation is
expected to result in a fee increase.
2:44:09 PM
MS. CHAMBERS explained that licensing fees cover all matters the
audit looked at, including professional licensing
investigations. These costs have risen for all boards and
commissions in the last few years and the division asked for a
small general fund increment in FY21, FY22, and FY23 to prevent
fee increases. She said the department is looking to the
legislature for direction on addressing this ongoing challenge.
She explained that Alaska follows the same model and
infrastructure for boards and commissions as many other states,
but the economy of scale is very different. For all practical
purposes it works well, but not when a case involves a complex
investigation or a denial of licensure and the licensee or
applicant exercises their due process right to appeal. Those
cases run upwards of $100,000 and the licensees, in this case
the 300 chiropractors, have to pay for that. She noted that the
case in question was an example.
MS. CHAMBERS said the division tries to keep enough money in a
board's budget to pay for the average bump in investigation or
appeal costs. However, costs keep rising as a result of dramatic
cases, and there have been several in this profession in
particular. She noted that the largest cost is to pay attorneys
in the Office of Administrative Hearings, which is outside the
division's control.
CHAIR COSTELLO asked how many investigators were assigned to the
[seven] cases that were combined into one, and what accounted
for the periods of inactivity of 200 some days.
2:48:15 PM
MS. CHAMBERS explained that a pool of about 17 investigators
work for the division. They conduct the investigations for the
43 professional licensing programs and they are assigned
according to need. Life, health, and safety are prioritized to
protect Alaskans and make the best use of resources.
Investigators are also assigned based on their knowledge. In
this situation, the investigator was not only working on
chiropractic cases but also on dental, and nursing cases. Some
cases were deemed more pressing than the one in question and the
attorney gave advice that appeared to substantiate that it was
lower in priority.
MS. CHAMBERS said the case is moving forward now, but at the
time of the audit it was not deemed high priority.
CHAIR COSTELLO asked when and if the legislature will get
information about the case in litigation.
MS. CHAMBERS answered that the details of the case under
litigation will be made public as soon as there is a ruling.
CHAIR COSTELLO asked what happens if the division determines a
complaint is criminal in nature.
MS. CHAMBERS explained that if there is a criminal element, the
division turns the information over to the appropriate criminal
unit. That entity moves forward with the investigation. The
division is notified of the result and it takes the appropriate
licensing action based on the criminal finding. The division
worked out this process after an earlier legislative audit found
the process could be better. She noted that such improvements
were tracked in the case management files.
2:54:16 PM
SENATOR STEVENS asked when the determination was made that the
board member was inappropriately appointed.
MS. CHAMBERS offered her understanding that it was a finding in
the audit. As soon as it was brought to the attention of the
Governor's Office, the matter was handled appropriately and the
board member willingly resigned. She assured the committee that
the division has nothing to do with board appointments, the
criteria, or who is seated.
2:55:19 PM
CHAIR COSTELLO opened public testimony on SB 193; finding none,
she closed public testimony.
SENATOR REVAK said he had no idea about the intricacies of this
board. He continued:
It sounds like the board is backbreaking work.
Board members certainly require a backbone.
It sounds like in many ways, some of their backs are
against the wall.
We certainly don't want to send them backward.
We also certainly don't want to turn our backs on
them.
He thanked the sponsor for bringing the bill forward.
CHAIR COSTELLO said she appreciated the levity.
CHAIR COSTELLO held SB 193 in committee for further
consideration.
2:56:34 PM
At ease
2:57:14 PM
CHAIR COSTELLO reconvened the meeting and apologized that there
was not time to hear the last bill.
2:58:01 PM
There being no further business to come before the committee,
Chair Costello adjourned the Senate Labor and Commerce Standing
Committee meeting at 2:58 p.m.