04/14/2015 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB26 | |
| HB116 | |
| HB178 | |
| HB46 | |
| HB41 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 107 | TELECONFERENCED | |
| + | HB 26 | TELECONFERENCED | |
| + | HB 41 | TELECONFERENCED | |
| + | HB 46 | TELECONFERENCED | |
| + | HB 116 | TELECONFERENCED | |
| + | HB 178 | TELECONFERENCED | |
| + | 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.