Legislature(2007 - 2008)BELTZ 211

03/27/2007 09:00 AM Senate STATE AFFAIRS


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 16 EXTEND REGULATORY COMMISSION OF ALASKA TELECONFERENCED
Moved CSSB 16(CRA) Out of Committee
+ SB 100 SUBSTANCE ABUSE/MENTAL HEALTH PROGRAMS TELECONFERENCED
Heard & Held
+ SB 101 GUARDIANSHIP AND CONSERVATORS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
              SB 101-GUARDIANSHIP AND CONSERVATORS                                                                          
                                                                                                                                
10:10:29 AM                                                                                                                   
CHAIR MCGUIRE announced the consideration of SB 101.                                                                            
                                                                                                                                
10:11:00 AM                                                                                                                   
JOSH  FINK, Director,  Office of  Public  Advocacy, Department  of                                                              
Administration,  said  SB  101  cleans  up  previous  legislation,                                                              
which had  enacted licensure  requirements for private  guardians.                                                              
SB  101  does   three  things,  including   eliminating  duplicate                                                              
licensing.  The  original  bill  wanted  to  provide  a  level  of                                                              
scrutiny for  private guardians, but  it also wanted  to encourage                                                              
the growth of  guardian services. But it required  three duplicate                                                              
licenses,  he  said,   and  "we  never  intended   that."  SB  100                                                              
clarifies that  only one license is  needed and it is  attached to                                                              
the individual.  Secondly, SB 101 clarifies which  crimes preclude                                                              
licensure, which will  be crimes of dishonesty and  any crime that                                                              
would affect one's  ability to be a guardian. The  third aspect of                                                              
SB 101  deals with  certifying private  and public guardians.  The                                                              
division is  already requiring things  like a criminal  background                                                              
check for  both, but the  bill puts it  in statute. He  noted that                                                              
the committee is  working off of a committee  substitute (CS) from                                                              
the  Senate Labor  and  Commerce committee,  and  it eliminates  a                                                              
requirement  to   show  proof  of   insurance  or  bond.   It  was                                                              
meaningless  language in  a vacuum,  he said.  "You can't  require                                                              
someone to  show proof of the ability  to get insurance  or a bond                                                              
without a  specific amount,  and a specific  amount cannot  be set                                                              
until  you look  at  a particular  client's  estate  you would  be                                                              
managing."  Under current  statute, the  court can  impose a  bond                                                              
requirement in individual  cases based on the size  of the estate.                                                              
This bill allows  the Department of Commerce to  suspend someone's                                                              
license  when failing  to maintain  a bond ordered  by the  court,                                                              
"but we  simply eliminate the generic  language that they  have to                                                              
show proof of ability to be insured."                                                                                           
                                                                                                                                
10:14:56 AM                                                                                                                   
MR.  FINK  said  that  is  the   only  change  made  in  the  last                                                              
committee.                                                                                                                      
                                                                                                                                
CHAIR   MCGUIRE   asked   about  aligning   public   and   private                                                              
requirements and if there are exceptions for a family member.                                                                   
                                                                                                                                
MR. FINK said a family member would not need to be licensed.                                                                    
                                                                                                                                
CHAIR  MCGUIRE said  she would  hate  to see  them have  to get  a                                                              
license; they are already taking on tremendous responsibilities.                                                                
                                                                                                                                
10:16:22 AM                                                                                                                   
SENATOR GREEN  moved to  adopt the  proposed committee  substitute                                                              
to SB 101,  labeled 25-LS0559\K, Bullard, as the  working document                                                              
of the committee.                                                                                                               
                                                                                                                                
SENATOR FRENCH said he had Version M.                                                                                           
                                                                                                                                
CHAIR  MCGUIRE said  it is  Version K,  and on page  6 the  Senate                                                              
Labor  and Commerce  committee took  out the  requirement for  the                                                              
bonding and insurance.                                                                                                          
                                                                                                                                
SENATOR FRENCH asked  about page 5, lines 11-12,  which eliminates                                                              
the list of all persons currently employed by the licensee.                                                                     
                                                                                                                                
10:17:58 AM                                                                                                                   
MR.  FINK said  the bill  eliminates  the organization's  license,                                                              
which  was causing  the  duplication  of licenses.  Each  employee                                                              
will need the license.                                                                                                          
                                                                                                                                
SENATOR  FRENCH  asked  if  the  licensed  person  could  delegate                                                              
duties to an employee.                                                                                                          
                                                                                                                                
MR. FINK  said a  guardian might  have clerical  help but  someone                                                              
would  be   in  violation  of   their  license  by   delegating  a                                                              
guardianship responsibility to a non-licensed individual.                                                                       
                                                                                                                                
10:19:27 AM                                                                                                                   
DAVID  BROWER,   Assistant  Attorney   General,  Civil   Division,                                                              
Department  of Law (DOL),  said the  deleted language  referred to                                                              
the  organizational  license  that  SB  101  would  eliminate.  He                                                              
reiterated  that  no one  could  delegate licensed  activities  to                                                              
someone without  a license.  He asked if  line 14  on Page 4  is a                                                              
remnant of the organizational license.                                                                                          
                                                                                                                                
SENATOR  FRENCH asked  what the  new requirement  will be  for the                                                              
organizations  that   once  needed   a  license.  "What,   in  the                                                              
marketplace, is  going to rise up  to take the place of  the thing                                                              
that we're eliminating?"                                                                                                        
                                                                                                                                
CHAIR  MCGUIRE   said  she  understands   the  public   policy  of                                                              
eliminating  duplicate licensing,  but "how  will that change  the                                                              
marketplace?  It is  a  big legal  decision  to be  a guardian  or                                                              
conservator, she noted.                                                                                                         
                                                                                                                                
10:22:17 AM                                                                                                                   
MR.   FINK  said   he  worked   closely  with   the  Division   of                                                              
Occupational licensing.  He said he assumes line 14  is a remnant.                                                              
On  Page 8  there is  a transition  paragraph  that allows  people                                                              
with  organizational  licenses to  keep  them until  they  expire.                                                              
Currently  there   are  four  private  guardians   in  the  state-                                                              
individuals  with  solo shops.  One  may  be  getting out  of  the                                                              
business,  and  it has  number  of  employees  and has  been  "the                                                              
subject  of  quite  a  bit of  criticism."  It  won't  affect  the                                                              
current market  except save them  some money. The bill  will allow                                                              
a group  of people  to form  a business,  but each  would need  an                                                              
individual license.                                                                                                             
                                                                                                                                
10:24:13 AM                                                                                                                   
SENATOR  FRENCH asked  if only  four guardians  are available  for                                                              
hire.                                                                                                                           
                                                                                                                                
MR. FINK said there might be six.                                                                                               
                                                                                                                                
SENATOR   FRENCH   surmised   that    the   elimination   of   the                                                              
organizational  license will  not  have much  impact  on a  person                                                              
trying to find a guardian.                                                                                                      
                                                                                                                                
MR. FINK said he  hopes the bill enhances the market.  He knows of                                                              
individuals  who are  interested  in becoming  guardians, but  the                                                              
duplicate license is a barrier.                                                                                                 
                                                                                                                                
10:25:18 AM                                                                                                                   
CHAIR MCGUIRE  said she can  understand that a public  conservator                                                              
should  be held  to the  same standards  as  a private  one, to  a                                                              
degree. But  the public  guardian is  not doing  it for  a profit.                                                              
She said  she would like to  see more guardians  and conservators,                                                              
and their  job is  to help  people to  make decisions  and protect                                                              
them. They can  protect people from credit problems  and help them                                                              
find   long-term   care,  for   example.   It  is   a   phenomenal                                                              
undertaking, she  said. She said  she doesn't want to  deter those                                                              
who will do it out of the goodness of their heart.                                                                              
                                                                                                                                
MR. FINK  said all 15  of his guardians  have passed  the National                                                              
Guardianship  Association  certification   requirement.  That  has                                                              
been  his  policy, and  the  bill  puts  it in  statute.  Criminal                                                              
background checks  have been  run on people  anyway, and  the bill                                                              
gives him the authority  to perform them. It is  important to know                                                              
if  a  potential  guardian  has  been  convicted  of  a  crime  of                                                              
dishonesty, he explained.                                                                                                       
                                                                                                                                
10:27:47 AM                                                                                                                   
CHAIR MCGUIRE closed public testimony and held SB 101 over.                                                                     
                                                                                                                                

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