Legislature(2001 - 2002)
02/11/2002 01:43 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 171
An Act relating to a curriculum for Alaska history; and
providing for an effective date.
Vice-Chair Bunde MOVED to adopt work draft #22-LS0070\T,
Ford, 2/5/02, as the version of the legislation before the
Committee. [Copy on File].
Representative Croft OBJECTED for the purpose of hearing the
changes made to the bill.
REPRESENTATIVE MARY KASPNER pointed out that the committee
substitute would change the language on Page 3, Line 19.
The former version stipulated that the Department of
Education & Early Development "shall" develop a standards
based history education course. The proposed committee
substitute would clarify that it would be left up to each
governing body to develop the standards based history
curriculum. The burden would fall upon the school districts
rather than the Department of Education & Early Development.
She added that adoption of the committee substitute would
zero out the fiscal notes.
Representative Croft WITHDREW his OBJECTION.
Vice-Chair Bunde MOVED to report CSHB 171 (FIN) out of
Committee with individual recommendations and the attached
zero fiscal note. He voiced concern for what the teachers
of history throughout the State are about to face.
There being NO OBJECTION, it was so ordered.
CSHB 171 (FIN) was reported out of Committee with a "do
pass" recommendation and with a new zero fiscal note by
Department of Education & Early Development.
#HB307
HOUSE BILL NO. 307
An Act delaying to June 30, 2007, the last date by
which hydrocarbon exploration geophysical work must be
performed or drilling of a stratigraphic test well or
exploratory well must be completed in order for a
person to qualify for an exploration incentive credit.
REPRESENTATIVE HUGH FATE explained that HB 307 would extend
the exploration incentive credit for petroleum for an
additional three years. The change would allow for further
exploration into the possibility of natural gas and oil in
the Tanana River Drainage Basin.
Representative Hudson complimented Representative Fate for
bringing the legislation forward. He thought the bill could
be a simple way to create additional revenues for the State.
He asked how long it was anticipated before the State would
see those revenues.
Representative Fate replied that the Tanana River Drainage
Basis is an extremely high potential area and where Andex
Resources is already licensed. There are potential leases
in that area. He reiterated that the potential could be
huge. If they are able to strike the hydrocarbons assumed
to be gas, they would be able to have the ability on line to
delineate the field and explore the capacity with a program
by 2005. There could soon be gas into Fairbanks if it is a
commercial deposit. He felt that it would bring greater
economic potential into Fairbanks, the Railroad Belt and the
military bases.
Representative Hudson suggested that perhaps by 2005 or
2006, there would be gas on the market.
Representative Fate believed that distribution could take
longer. He stated that the flow would begin in around 2005.
Currently, the payment is $8 dollars per million BTU. The
legislation would reduce that number. HB 307 does not deal
with the "discovery" of gas, but rather the "exploration" of
gas. He stressed that the legislation would be a benefit to
the State of Alaska.
Representative Harris inquired what types of incentive
credit would be involved.
Representative Fate responded that the exploratory incentive
would be an incentive for the State to receive to explore
the geology. It would not become their private database.
That is why the State is interested in the exploratory
incentive and would provide good information for the State
for future sales.
Representative Harris asked how the exploring credit would
be used.
Representative Fate replied that it would be factored by the
cost through the royalty base. He added that there are
other credits that could be given, such as a lease sale. He
emphasized that this would not be a discovery credit; there
are two different types of credits.
Representative Lancaster asked if the credit would be good
for only this basin discovery or could it be used for a
shallow gas credit.
Representative Fate replied that shallow gas has its own
structure. The royalties on shallow gas would be much
lower. He added that the shallow gas credit would be better
for the operators. Some laws are provided for both;
however, HB 307 would not affect the shallow gas operators.
MARK MYERS, [TESTIFIED VIA TELECONFERENCE], DIRECTOR,
DIVISION OF OIL AND GAS, DEPARTMENT OF NATURAL RESOURCES,
ANCHORAGE, explained the lease credit. Economic incentive
credits consist of two programs. One of the programs
applies to leases and is a competitive program. That is an
option with the Commissioner of Department of Natural
Resources (DNR). He stressed that the proposed program is
separate and distinct. The credit was passed in 1994 with
the intent to allow the State to get information that it
would not otherwise get, or it could accelerate the ability
to determine information and show that information to other
parties. The information could include both well and
geophysical data.
Mr. Myers pointed out that it had been capped at $30 million
dollars, which could be spent. The bill would extend the
sunset to 2007. The Commissioner of DNR would look at the
data to determine how much funding they would be willing to
put toward the project to arrive at that data. The money
would be a credit against royalties, taxes, bonuses and
rentals and would be a transferable credit. They could sell
the credits to other major companies at pretty much face
value. It would be a discretionary transfer of money.
The minimum that the DNR Commissioner could give out would
be 10% of the cost per foot or 10% of the cost of the line
mile. The maximum, which could be given out, would be 50%
on State land and 25% on Native land. The Commissioner is
not allowed to do that on leased land. The program has $30
million dollars that has never been spent. There are two
applications which the State is aware of.
He reminded members that the motivation and justification
for the bill is valuable information to the State. Usually,
the Commissioner does not receive much of the information
available to the Department of Natural Resources regarding
private land. He added that the Commissioner has the
authority to show data to the third parties to promote
competition. Mr. Myers stressed that there are multiple
uses for the data.
Representative Hudson asked if an extension to 2007 would be
a reasonable length of time. He believed that the concept
for exploration credit could produce more gas and would
create revenue positive for the State. He questioned how
the date had been determined.
Mr. Meyer replied that a shorter time frame could provide an
advantage to the Legislature to make a determination of how
it might work in the future. Additionally, it could
accelerate operations. It is hoped that by 2010, there will
be exploration before it matures. He reiterated that the
2007 date allows more flexibility for the Legislature.
JIM DODSON, [TESTIFIED VIA TELECONFERENCE], ANDEX RESOURCES,
ANCHORAGE, interjected that one of elements of the credit
would be that the State could earn a 25% credit on non-state
lands. Not everything done under this statute would lead to
leasing. The bill provides the ability for statute to
encourage production of oil and gas within the State. He
added that no one would receive anything unless money is
spent and/or the DNR Commissioner approves the credits. The
State does not use cash to fund the request.
Mr. Dodson stated that the statute currently being used was
passed in 1994 and given a ten-year sunset. He noted that
not one dollar of that money has been spent. The program
makes a lot of sense as it is trying to bring gas
exploration to Interior Alaska. For Andex Resources, the
credit would allow the company to do more exploration.
Shooting new data would cost much more money. He maintained
that a lower cost option would have beneficial effects.
Mr. Dodson pointed out that at present time, no company has
gone deeper than 4,000 feet. He stressed that there is
tremendous amount of data in that basin, which most likely
will develop economic production. If anyone is willing to
risk exploration dollars in developing that well, and if the
State could "soften" the blow by extending the credits, the
company could create a more extensive program. He suggested
that there could be a 50 million cubic foot per day market
in the Fairbanks area. He believes there is a good chance
of getting a bigger supply into that area.
Representative Foster MOVED to report HB 307 out of
Committee with individual recommendations and with the
accompanying fiscal notes.
There being NO OBJECTION, it was so ordered.
HB 307 was reported out of Committee with a "do pass"
recommendation and with indeterminate fiscal notes #1 & #2
by the Department of Natural Resources.
#HB343
HOUSE BILL NO. 343
An Act extending the termination date of the Board of
Professional Counselors.
AMY ERICKSON, STAFF, REPRESENTATIVE MURKOWSKI, commented
that the Board of Professional Counselors consists of five
members appointed by the Governor. Regulation and licensing
of professional counselors safeguards the public by
promoting competence and integrity of those who hold
themselves out to the public as professional counselors.
The Board is scheduled to terminate June 30, 2002, and if
the Legislature does not act this session, the Board will
have one year to conclude it administrative operations. The
Board operates in an efficient and effective manner and HB
343 acknowledges that and extends the termination date.
Ms. Erickson added that HB 343 would also amend professional
counselors' education requirements. Applicants would be
required to earn a master's degree in counseling or a
related professional field from an accredited institution
and achieve a total of 60 graduate semester hours.
Ms. Erickson pointed out that the Division of Legislative
Audit in its 2001 audit report, recommended the Board of
Professional Counselors and the Marital and Family Therapy
Board merge. Although there is merit to combining the
boards, neither board fully supports a merger at this time.
Ms. Erickson stated that HB 343 would extend the Board of
Professional Counselors for three years instead of four,
coinciding with the current termination dates of three
similar boards so that the issue of a merger could be
revisited.
Representative Whitaker asked if the concern regarding the
credit hours had been discussed.
Ms. Erickson replied that it had been discussed. She
acknowledged that people have been denied licensure because
of that concern.
Representative Hudson asked about the proposed amendments
and if it was intended that they be offered.
Ms. Erickson noted that Representative Murkowski did support
the amendments.
Representative Hudson MOVED to ADOPT Amendment #1. [Copy on
File].
Co-Chair Williams OBJECTED for purpose of discussion.
CATHERINE REARDON, DIRECTOR, DIVISION OF OCCUPATIONAL
LICENSING, DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT,
explained that Amendment #1 would insert "or nationally" on
Page 2, Line 11. She suggested that insertion had been an
oversight in the original draft. The addition of the
language would help to clear up the bill.
There being NO further OBJECTION, Amendment #1 was adopted.
Representative Hudson MOVED to ADOPT Amendment #2. [Copy on
File].
Co-Chair Williams OBJECTED for the purpose of discussion.
Ms. Reardon explained that Amendment #2 which would insert
language on Page 2, Line 19, after "(6) has, after,"
deleting language "completing the requirement of" and
inserting language "earning the degree required under". The
language would make qualifications more accessible for the
applicant to meet their required needs.
Ms. Reardon noted that without the amendment, all 60-hours
would need to be completed in order to earn a credit toward
the degree. With the language of the amendment, the
applicant could start to get their supervised experience
after the master's degree and before completing the extra
12-hours.
Vice-Chair Bunde referenced Item (a), asking if there was
some sort of "turf battle" going on.
Ms. Reardon replied that was not the intent but rather that
the Department be more receptive to applicants. With or
without Amendment #2, the supervised experience would affect
the doctoral degree in the same way. The people with the
master's degree would be the ones affected.
Representative Whitaker inquired if the person with 39
credit semester hours would now be required to take an
additional 9 semester hours.
Ms. Reardon explained that if the applicant has a master's
degree that requires 39 masters' hours, through the
amendment, they would be able to begin getting the
supervised experience and would still have to get the
additional graduate credits to bring their total credits to
60. Under present law, the applicant needs the 60-credits
with a 48-credit hour degree. Amendment #2 stipulates that
it still has to be 60-credit hours, however, the degree
could be any length. The legislation provides a way to get
the license.
Representative Whitaker inquired if other states have this
particular requirement.
Ms. Reardon did not know how many other states require 60-
hours. She thought that most states only require the 48-
credit hours.
Representative Whitaker commented that he was having a
difficult time understanding the need for the benchmark
established for the master's degree plus the additional
experience.
ANNE HENRY, LPC BOARD, SPECIAL PROJECTS COORDINATOR,
DIVISION OF MENTAL HEALTH & DEVELOPMENTAL DISABILITIES,
DEPARTMENT OF HEALTH & SOCIAL SERVICES, responded that the
national norm is 48-credit hours and that the National
Accrediting Body recommends the 60-credit hour requirement.
In Alaska, the University of Anchorage has a 48-semester
hour course. There is a 60-hour program through Alaska
Pacific University. The Board offers the examination that
is used for the State of Alaska for licensing professional
counselors, requiring a minimum of 48-semester hours.
Representative Whitaker pointed out that the national
standard is 48-credit hours and Alaska has raised it by 12
hours to 60-credit hours. He asked why.
Ms. Henry stated that the Board believes that measure would
raise the standard and quality of professional counselors in
the State of Alaska.
Ms. Reardon interjected that the entire board had discussed
the consideration. She acknowledged that it was a
controversial issue. She pointed out that 60-hours was the
requirement in the original licensing law. The bill does
not increase that requirement.
Representative Whitaker inquired how the Alaska Board
compares to other states board laws.
Ms. Henry explained that the law in Alaska requires that a
person looking for licensure must have the equivalent or
higher standards than elsewhere. When people come into the
State, it is not assumed that they have the 60-hours if they
have been licensed by credential.
Representative Whitaker clarified that a licensed counselor
from Alaska could go to any state in the union, but no other
licensed counselor could come to Alaska without furthering
their education.
Ms. Henry replied that it has been the practice of the Board
to look at the full spectrum of requirements of those
license requests coming in from other states. She pointed
out that to waive requirements is considered part of the
overall picture and responsibility.
Representative Croft pointed out that Amendment #2 was still
on the table.
There being NO further OBJECTION to Amendment #2, it was
adopted.
Vice-Chair Bunde asked if the 60-hour requirement was
flexible.
Ms. Reardon replied that a licensure by credential statute,
AS 08.29.120 exists. The Board gets to make that decision.
Vice-Chair Bunde inquired if there were enough counselors in
the State to meet the existing needs.
Ms. Henry advised that there is a dramatic shortage of
counselors in the State, especially in the rural areas.
Vice-Chair Bunde asked why Alaska has the highest rate for
certification with such a dramatic need.
Ms. Henry stated that the Division would like to get more
people certified and licensed. She added that it is a title
restriction law and the more people are licensed, the more
accountability there will be.
Vice-Chair Bunde argued that there is room for discussion
regarding the requirements.
Representative Hudson noted that once a technical amendment
is put in place, constituents complain about the extra
credit time. He asked if there had been people that object
to the proposed change.
TAPE HFC 02 - 23, Side B
Ms. Henry acknowledged that the Board had already denied
licenses to some people because of the 48-hour policy.
There are members on board that are opposed to changing the
certification requirements. It will not hurt anyone who is
moving toward licensure especially with the addition of
Amendment #2.
Representative Hudson commented that with Amendment #2, the
applicant would still need 60-hours but they would be able
to pick up practical experience.
Ms. Henry explained that making the amendment would allow
them to work full time and take a course or two in the
evening for a year or two to acquire the time that they
need.
Ms. Reardon added that with the addition of Amendment #2,
the requirements would be easier to get a license. She
emphasized that the bill makes it easier.
Representative Hudson clarified that this was not an effort
to keep anyone out but rather make it better.
Representative Lancaster questioned if they would pay for
their own education and how long would it take for them to
achieve it.
Ms. Henry replied that yes the individual would pay for his
or her own education and it could happen in one semester if
they went full time. She reiterated that the legislation
would make it easier for working Alaskans.
Representative Foster MOVED to report HB 343 (FIN) out of
Committee with individual recommendations, the Letter of
Intent, and with the accompanying fiscal note. There being
NO OBJECTION, it was so ordered.
Representative Hudson pointed out for the record that the
fees cover all fiscal costs.
CS HB 343 (FIN) was reported out of Committee with a "do
pass" recommendation, a House Labor and Commerce Letter of
Intent and a fiscal note #1 by the Department of Community &
Economic Development.
#HB362
HOUSE BILL NO. 362
An Act extending the termination date of the Board of
Governors of the Alaska Bar Association.
AMY ERICKSON, STAFF, REPRESENTATIVE LISA MURKOWSKI, stated
that the Board of Governors of the Alaska Bar Association
was established in 1955 to ensure that only qualified
members of the legal profession of good moral character are
allowed to practice law in the State. The Bar Association's
primary functions are to screen applicants for admission to
ensure that all successful applicants are fit to practice
law, and to provide discipline by investigating grievances
against members of the Bar. The Bar Association also
performs a wide variety of miscellaneous functions including
classes for continuing legal education, lawyer referral
services, and fee arbitration.
Ms. Erickson noted that the Board consists of twelve
members. The Association currently regulates 2,719 licensed
attorneys.
Ms. Erickson pointed out that the Division of Legislative
Audit, in its 2001 report, found that the Bar Association
meets the public need in an effective and economical manner.
It ensures that persons licensed to practice law are
qualified and provides for investigations of complaints and
has established a disciplinary process designed to ensure
that licensed individuals act in a competent and
professional manner.
Ms. Erickson noted that the Board of Governors of the Alaska
Bar Association is scheduled to terminate June 30, 2002, and
will have one year to conclude its administrative operations
unless the Legislature acts this session. HB 362 reflects
the recommendation of the Division of Legislative Audit and
extends the termination date for the Bar Association for
another four years.
Representative Foster MOVED to report HB 362 out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
HB 362 was reported out of Committee with a "do pass"
recommendation and with a zero fiscal note by the Alaska
Court System.
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