HOUSE BILL NO. 279 "An Act extending the termination dates of the Board of Nursing, the Board of Dental Examiners, the Board of Barbers and Hairdressers, the Big Game Commercial Services Board, the Alcoholic Beverage Control Board, and the Alaska Seismic Hazards Safety Commission; and providing for an effective date." 1:35:38 PM Co-Chair Stoltze expressed the intent to hear, but hold both scheduled bills. 1:37:04 PM Co-Chair Thomas MOVED to ADOPT the proposed Committee Substitute for HB 279, Work Draft 27-LS0944\I (Martin 2/20/12). Co-Chair Stoltze OBJECTED for discussion. There being no objection, the Committee Substitute was adopted. REPRESENTATIVE MIKE HAWKER, SPONSOR, explained that the bill extends the sunset dates for five boards and one commission. Sunset dates are a periodic exercise to evaluate the performance of boards and commissions. Extensions are recommended by the Legislative Budget and Audit Committee. Last session an amendment was added by the Senate that was vetoed by the Governor, therefore the reauthorization of the boards and commission was before the House Finance Committee again. Boards and Commissions recommended for extension are the Board of Barbers and Hairdressers (June 30, 2019); the Board of Dental Examiners (June 30, 2019); the Board of Nursing (June 30, 2019); and the Alcohol Beverage and Control Board (June 30, 2015). Added to the bill are the Big Game Commercial Services (June 30, 2016) and Alaska Seismic Hazard Safety Commission (June 30, 2014). In reference to the Alaska Seismic Hazard Safety Commission the audit discovered issues regarding board members not attending meetings and lack of accomplishments. Representative Hawker stated that the Acting Legislative Auditor was available to discuss the report. He noted that the Department of Military and Veterans Affairs believed the commission did serve a valid purpose, but recognized it was not working as well as it could. The proposed shorter extension is to give the commission an opportunity to repair their actions. Section VII established a statute that stated there could not be an omnibus reauthorization bill. Co-Chair Stoltze asked if the governor's veto in the previous session expressed a concern over the omnibus nature of the bills. Representative Hawker indicated the governor did not express any concerns. The item at issue was to not mix policy calls with the simple administrable activity of extending the dates of board and commissions. The Senate added a provision that was a policy call related to one board involving judicial matters that the governor felt had not been previously vetted in any judiciary committee and, therefore, it was inappropriate to pass a bill with the policy call. 1:43:49 PM Co-Chair Stoltze expressed his approval of the more professional approach to the extension matter. Representative Hawker noted again that the Acting Legislative Auditor was available to answer any questions regarding the audits. He applauded former Legislative Auditor, Pat Davidson, for her years of service. In the interim, Kris Curtis was appointed Acting Legislative Auditor by the Legislative Budget and Audit Committee. 1:46:43 PM Representative Guttenberg took issue with the comment that it was difficult to find board members for the Alaska Seismic Hazard Safety Commission. He noted that just because the governor does not want to appoint certain people to the board does not mean there are not any interested or qualified individuals to serve. He relayed that people in the industry want to participate and have waited to be appointed. He pointed out that some items in audit report had nothing to do with the board itself. He questioned if any board members had responded to the report. He emphasized the importance of a seismic board especially in setting up seismic codes for building construction. The insurance industry supports the activity of the commission. Before the commission was established the seismic reports generated from California which placed Alaska into one seismic region. For Alaska to control its own destiny and understand seismic activity the seismic board is important to the state. He indicated being troubled by the boards extension of only two years versus four years. 1:50:31 PM Co-Chair Stoltze informed there had been discussion to eliminate the seismic commission entirely; therefore the two year extension was a compromise by the administration. Representative Hawker added there should not only be a seismic commission, but a functioning and effective seismic commission. He stood by the state auditor's review of the board. 1:51:20 PM Co-Chair Stoltze requested the Acting Legislative Auditor join Representative Hawker at the table for discussion. KRIS CURTIS, ACTING LEGISLATIVE AUDITOR, LEGISLATIVE AUDIT DIVISION, summarized the audit recommendations for the Alaska Seismic Hazard Safety Commission board. The purpose of the audit was to determine if the commission should be extended. It was determined that the commission was operating effectively and serving a public purpose. The audit recommended the commission be extended until June 30, 2016. Four recommendations were made to the board: to develop a strategic plan to mitigate seismic hazard risk in Alaska, to develop procedures to insure public notice of meetings were published in a timely manner, to follow procedures for habitually absent members, and to recommend to the governor that open positions be filled in a timely method. Representative Stoltze noted the state auditors focus on one board and that was the reason for the shorter extension. Ms. Curtis noted the legislative audit office recommended a four year extension for the commission. 1:53:12 PM Vice-chair Fairclough spoke about the board attendance issue and understood that one board member, missing for three consecutive meetings, was working in the Gulf of Mexico. She believed the absence was an exception to the rule and not the board standard. She wondered if everyone else on the board was in attendance during that time period. She questioned if the auditor's recommendation concerned the one individual's absence or a history of absenteeism within the board. Ms. Curtis responded that the commission's own policy recommended replacement after three absences and the one individual missed ten. The commission did not recommend termination, but waited until the individual's term was completed in 2012. Co-Chair Stoltze asked if this was a systemic problem or a single problem within the board. Vice-chair Fairclough asked about the time frame for the ten absences. Ms. Curtis replied the absences were over year and a half period. Co-Chair Stoltze questioned again if the attendance issue only reflected on one person. Ms. Curtis replied it reflected on only one person. 1:55:01 PM Representative Guttenberg asked what relationship all the boards have with the governor in filling the seats. Ms. Curtis indicated that the recommendation to the governor to fill open seats in a timely manner was a common recommendation made in many sunset reports. An insufficient applicant pool is often the cause for delay. The recommendation is for the governor's office to work with the commission because the board can be active in generating an applicant pool. Representative Guttenberg wondered if outside the recommendation for the one absent member, had there been a problem with quorums or other absent board members. Ms. Curtis replied that the only documentation indicated one position was open for nine months and one member was habitually absent. Representative Guttenberg asked if the governor had names, but simply did not make the appointment. Ms. Curtis reported that documentation indicated an insufficient applicant pool. Representative Guttenberg asked if there was a required number needed in the applicant pool. He believed the only need was for at least one qualified individual. 1:57:36 PM MICHAEL O'HARE, DEPUTY DIRECTOR OF HOMELAND SECURITY, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS (via teleconference), voiced his support for the Alaska Seismic and Hazard Commission. The state relies on industry professionals who donate their time to provide good science information. He encouraged support of the commission. Co- Chair Stoltze asked if there was any objection to the two year extension. Mr. O'Hare supported a two year extension rather than doing away with the commission. 2:00:18 PM DEAN MAXWELL, AGENT, STATE FARM INSURANCE (via teleconference), voiced his support of HB 279, especially the reauthorization of the Alaska Seismic Hazard Commission. He related the ongoing important work of the commission. As an insurance provider, he understands the significant impact on people and their lives after a seismic event. The role of an insurance position on the seismic board is vital to the commission that is currently involved in working with the insurance division to provide a public information brochure on earthquake insurance. Without the commission, the voice from many different important sources would not be available. 2:04:22 PM JOHN AHO, CHAIR, SEISMIC HAZARDS SAFETY COMMISSION, declared his service on the board for the Alaska Seismic Hazard Commission and was disturbed by some of the comments. He testified in support of the extension of the commission. In response to the audit report, the commission is currently developing a strategic plan. He explained the board had a plan that was referred to as a "charter." The charter meeting established a vision, mission, goals, core values, and measures of success for the board. The board has been operating under the charter for years. The strategic plan is extremely important for long range commitments. In the area of seismic risk mitigation, a plan cannot evolve overnight. Dependable scientific back-up is needed before good decisions can be made. He stressed the need of not recommending policies as unfunded mandates. He admitted that there could be an improvement in publishing notices in a timely manner. The staff has now been instructed to have notices published at least one week in advance. Regarding the recommendation to replace members who have missed meetings, the bi-laws state that three consecutively unexcused board meetings meant expulsion; the missing person went to the Gulf of Mexico for a one and a half year project. He agreed it was remiss of the commission not to recommend a replacement for the absent member. He noted that in assisting the governor's office to fill positions, there is a line-item for interested parties who might want to serve. He believed the audit recommendations were helpful, but did not rise to the level to discontinue the board. He spoke of successful goals made by the commission. 2:09:43 PM Mr. Aho continued that the commission is currently working with FEMA in Kodiak on an earthquake planning scenario. He would like to continue the process with other cities in Alaska. He noted yearly presentations given throughout Alaska by the commission to discuss earthquake mitigation and spoke of the dedicated meetings of the volunteers on the board. Co-Chair Stoltze emphasized that the Department of Natural Resources should have been more involved in the audit process. He stressed no fault with the volunteer members of the board. Mr. Aho remarked that the Department of Natural Resources support has been very good. Co-Chair Stoltze interjected that the department was only lacking in the process. Representative Doogan emphasized that the purpose of the audits was intended to determine any shortcomings and to help the commission fix any problems. 2:14:22 PM SAM KITO, TECHNICAL ENGINEER, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT, read a prepared statement: The Department of Education and Early Development (DEED) began working with the Alaska Seismic Hazard Safety Commission in January 2009. As the department's appointed representative on the Schools Committee, I have participated in teleconferences and have occasionally been able to participate in the Commission's face-to-face meetings. During the time that I have been working with the Commission, they have assisted the department in our efforts to address seismic safety of schools in the state. As you are aware, in many communities in Alaska the school buildings are designated as emergency shelters, and where they are not specifically designated many schools end up serving that function due to their size and location. Because of these reasons, it is vitally important for the schools to be constructed in such a manner as to make them useful during emergencies. As you are also aware, DEED administers the School Construction and Major Maintenance grant and Bond Debt reimbursement programs. Through these programs, the department prioritizes school capital projects for construction, addition, renovation and repair of school buildings in the state. The Commission has provided valuable insight and productive comments as the department developed revisions to the Capital Improvement Project Application. These changes allow districts to separately include costs for seismic investigation and design in a project request and provide districts with guidance on the types of costs to include in the seismic hazard budget category. The commission also developed a ground acceleration listing of school facilities for the department that is currently posted on the DEED School Facilities website along with a map produced by the Commission that graphically shows the expected peak ground acceleration for the various areas of the state. This information can be combined with other information such as building age and construction type to help school districts determine the relative risk of their facilities to seismic events. This information could not have been developed by department staff because we lack the necessary expertise. In summary, the Department of Education and Early Development has benefitted from the existence of the Alaska Seismic Hazard Safety Commission, and supports extension of the Commission. Representative Costello asked if charter schools in private rented buildings were inspected. Mr. Kito replied that charter schools were leased by the charter or the district and codes are not enforced for those facilities. If the facilities are purchased by the district to serve as a district facility for the charter, then those schools would need to meet current codes. 2:18:25 PM SHIRLEY GIFFORD, DIRECTOR, ALCOHOL BEVERAGE AND CONTROL BOARD, DEPARTMENT OF PUBLIC SAFETY, understood the importance of the board's ending on June 30, 2012. She supported the continuation of the ABC Board remarking on many positive changes made within the board. She formed that she had distributed a survey in response to some reported dissatisfactions with the board and received an 18 percent return response. The licensing staff of the ABC Board scored "Above Average" to "Superior." Co-Chair Stoltze remarked that some of Ms. Gifford's comments would be best saved for the next bill's discussion. Ms. Gifford remarked that the board met all the requirements of the audit and reconciled with the state system. 2:23:45 PM KATE BURKHART, EXECUTIVE DIRECTOR, ADVISORY BOARD ON ALCOHOLISM AND DRUG ABUSE, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, supported HB 279 extension for the Alcohol Beverage and Control Board to 2015. 2:25:16 PM ROD COMBELLICK, OPERATIONS MANAGER, DIVISON OF GEOLOGIC AND GEOPHYSICAL SURVEYS, DEPARTMENT OF NATURAL RESOURCES, referred to a handout entitled, "Alaska Seismic Hazards Safety Commission" (copy on file.) He noted the statutory mission of the commission recommending goals, priorities and policies to the governor and legislature. He referred to the membership listed on page one and the broad expertise represented. Out of the eleven members, only three were from the state or federal government; the other members represent the private sector. Three local representatives are from seismically active regions of the state that provide input to the commission on their areas and have the ability to react to commission recommendations for seismic risk mitigation. He also referred to the three highly respected public members with earthquake expertise. John Aho, one of the public members recently received a life-time achievement award by the Western State Seismic Policy Council. Another member from the private sector is a world-renowned highly respected consulting geologist from Kodiak who also has years of experience in "active faults." In the early 70s, the Kodiak geologist was on the team that mapped the Denali Fault before the Alaska Pipeline was built across it. As a result of the knowledge and prediction that the fault area would one day experience a magnitude 8 earthquake; the pipeline was built to accommodate the possibility. In 2002, there was a magnitude 7.9 earthquake on that fault, but no oil was spilt due to their work. He referred to the map on page 2, showing the known active and potentially active faults in Alaska. On page 3, the map shows the 22,096 earthquakes recorded in Alaska for an eleven month period in 2011. Often earthquakes occur in non-populated areas, but eventually earthquakes hit a populated area with serious consequences. The U. S. map on page 4, reflects the predicted average annual earthquake loss ratio. Alaska ranks second nationally in predicted average Annual Earthquake Loss Ratio. All the "red" states have seismic advisory commissions, as well as some of the "yellow" states. Alaska Earthquake Facts listed on page 5, points out that Alaska has had an average of one "great" earthquake every thirteen years. The final page lists the significant commission accomplishments since the 2006 reauthorization. He surmised that a lot of the accomplishments were not reflected in the audit since they had been stated as "goals" by the commission. He stressed the great job performed by the commission. 2:33:48 PM Co-Chair Stoltze responded that comments have not been against the commission, but the department. He noted if Mr. Combellick had shown up and commented at the hearings; it would have alleviated some of the problems. There was no criticism of the commission. Vice-chair Fairclough asked if meetings were scheduled with Representative Hawker. Mr. Combellick responded there were no current meeting plans, but he would be available in Juneau all afternoon. 2:36:02 PM Representative Costello asked if going from a charter to strategic plan was a significant change. Mr. Combellick believed that the strategic plan would expand and provide valuable details on the charter. 2:37:11 PM Co-Chair Hawker contended that some testimony seemed defensive. He emphasized there was no plan to abolish the seismic board or to denigrate their work. He affirmed the legislature's responsibility to make certain that state assets are effectively applied with the most efficient operations. The legislative audit just pointed out necessary improvements in some of the boards. It is not a personal issue. The two year extension is an opportunity to revisit the operations in a shorter period of time. Co- Chair Stoltze remarked on the committee's intent to bring back the fiscal notes to make sure they are clear and separate. The Chair closed public hearing. HB 279 was HEARD and HELD in committee for further consideration. 2:40:18 PM AT EASE 2:50:26 PM RECONVENED