Legislature(2013 - 2014)HOUSE FINANCE 519

04/10/2013 01:30 PM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Continued at 7:30 p.m. Today --
+= SB 21 OIL AND GAS PRODUCTION TAX TELECONFERENCED
Scheduled But Not Heard
+= SB 18 BUDGET: CAPITAL TELECONFERENCED
Scheduled But Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 37 EXTEND SUICIDE PREVENTION COUNCIL TELECONFERENCED
Moved Out of Committee
+= SB 16 BD OF ARCHITECTS, ENGINEERS, SURVEYORS TELECONFERENCED
Moved Out of Committee
+= SB 38 STATE MEDICAL BOARD TELECONFERENCED
Moved Out of Committee
+= SB 88 ALASKA NATIVE MEDICAL CENTER HOUSING TELECONFERENCED
Heard & Held
+= SB 2 INTERSTATE MINING COMPACT & COMMISSION TELECONFERENCED
Moved Out of Committee
+= SB 24 MARINE TRANSPORTATION ADVISORY BOARD TELECONFERENCED
Moved HCS SB 24(TRA) Out of Committee
CS FOR SENATE BILL NO. 38(FIN)                                                                                                
                                                                                                                                
     "An  Act extending  the termination  date of  the State                                                                    
     Medical Board;  relating to the executive  secretary of                                                                    
     the  State   Medical  Board;   and  providing   for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
2:08:33 PM                                                                                                                    
                                                                                                                                
DAVID SCOTT, STAFF, SENATOR DONNY  OLSON, addressed the bill                                                                    
that extended  the sunset  date of  the state  medical board                                                                    
through  2020.  He  stated  that  LB&A  reviewed  the  board                                                                    
activities and  concluded that the  board served  the public                                                                    
interest.  The LB&A  recommended  a seven  year sunset  date                                                                    
extension.  The board  was  responsible  for the  licensing,                                                                    
regulation  and   discipline  of   physicians,  podiatrists,                                                                    
physician assistants and paramedics.  The board had two full                                                                    
time employees and the costs  were covered by licensing fees                                                                    
and all  revenue from the  board covered its  full operating                                                                    
costs. The  board unanimously  supported increasing  fees to                                                                    
cover the costs associated with the legislation.                                                                                
                                                                                                                                
2:10:57 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  pointed  to the  three  deficiencies                                                                    
listed in the audit that  addressed a lack of oversight. Mr.                                                                    
Scott  stated  that  the   board  president  would  directly                                                                    
address the deficiencies noted in the audit.                                                                                    
                                                                                                                                
Representative  Wilson  noted audit  deficiencies  typically                                                                    
led to shortened extensions.                                                                                                    
                                                                                                                                
Representative Kawasaki  wondered about the  salary increase                                                                    
provided  in the  bill. He  wondered  if it  was typical  to                                                                    
include a salary  increase in a board  sunset bill. Co-Chair                                                                    
Stoltze noted that board  extensions sometimes carried major                                                                    
policy initiatives,  but the  legislature was  reforming the                                                                    
process.                                                                                                                        
                                                                                                                                
2:14:12 PM                                                                                                                    
                                                                                                                                
Representative Gara  asked the committee chair  to bring the                                                                    
medical  board   representative  before  the   committee  by                                                                    
telephone. He told a story related to law practice.                                                                             
                                                                                                                                
2:16:44 PM                                                                                                                    
                                                                                                                                
Co-Chair Austerman wondered what a  range 23 paid. Mr. Scott                                                                    
asked for a repeat of the question.                                                                                             
                                                                                                                                
Co-Chair Austerman repeated his  question. Mr. Scott offered                                                                    
to get back  to the committee with the  answer. He estimated                                                                    
that a range 23 paid $75 thousand per year.                                                                                     
                                                                                                                                
Senator Pete Kelly joined the audience.                                                                                         
                                                                                                                                
Vice-Chair Neuman joined the committee.                                                                                         
                                                                                                                                
Co-Chair  Austerman stated  that a  large disparity  existed                                                                    
between  a  doctor's charges  for  services  in Alaska  when                                                                    
compared  to those  in the  Lower  48. He  thought that  the                                                                    
fiscal note for the bill explained that disparity.                                                                              
                                                                                                                                
2:18:27 PM                                                                                                                    
                                                                                                                                
Representative  Munoz  asked  about  a  disciplinary  action                                                                    
taken  against  a  licensee. She  wondered  how  the  public                                                                    
received  information about  the action.  Mr. Scott  did not                                                                    
know.                                                                                                                           
                                                                                                                                
Representative Wilson  asked if  the sponsor would  oppose a                                                                    
shorter  sunset.  She was  not  convinced  that the  audit's                                                                    
deficiencies  had been  addressed.  Mr.  Scott replied  that                                                                    
there would not be an objection to a reasonable extension.                                                                      
                                                                                                                                
CSSB 38(FIN)  was HEARD  and HELD  in committee  for further                                                                    
consideration.                                                                                                                  
                                                                                                                                
2:20:20 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:22:00 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR SENATE BILL NO. 38(FIN)                                                                                                
                                                                                                                                
     "An  Act extending  the termination  date of  the State                                                                    
     Medical Board;  relating to the executive  secretary of                                                                    
     the  State   Medical  Board;   and  providing   for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
7:36:27 PM                                                                                                                    
                                                                                                                                
DON  HABEGAR, DIRECTOR,  DIVISION OF  CORPORATIONS, BUSINESS                                                                    
AND   PROFESSIONAL   LICENSING,  DEPARTMENT   OF   COMMERCE,                                                                    
COMMUNITY  AND ECONOMIC  DEVELOPMENT stated  that he  had an                                                                    
opportunity to  listen to the  committee's prior  hearing on                                                                    
the legislation.                                                                                                                
                                                                                                                                
DAVE  SCOTT, STAFF,  SENATOR OLSON,  answered Representative                                                                    
Munoz's earlier  question about the board's  presentation of                                                                    
findings  to the  public. He  noted that  the administrative                                                                    
procedure act was  applicable to the board  allowing for the                                                                    
Open  Meeting  Act. He  added  that  "the board  shall  make                                                                    
available  to the  public the  information maintained  under                                                                    
(a) and  (b) of the  section for each person  licensed under                                                                    
this chapter" as stated in AS 08.64.130.                                                                                        
                                                                                                                                
Mr.  Scott  responded  to Representative  Wilson's  question                                                                    
about the  board's recommendations regarding the  audit from                                                                    
LB&A.                                                                                                                           
                                                                                                                                
Co-Chair Stoltze directed the question to Mr. Habegar.                                                                          
                                                                                                                                
Mr. Habegar  stated that the  audit's first  point addressed                                                                    
the database issues. He noted  that ample work was done this                                                                    
month to continue with the  maintenance agreement. He stated                                                                    
that testing  the changes  in the  database and  the records                                                                    
would prove the work done.                                                                                                      
                                                                                                                                
7:40:21 PM                                                                                                                    
                                                                                                                                
Mr. Habegar stated that the  second piece of the audit dealt                                                                    
with  continuing  education.  The department  implemented  a                                                                    
professional licensing  database system.  He added  that the                                                                    
recommendation also  required procedures mandating  that the                                                                    
board report to  the federation of state  database to ensure                                                                    
that a  check-and-balance system was established.  The board                                                                    
ensured that their executive  administrator was liaison with                                                                    
the chief medical investigator to ensure timeliness.                                                                            
                                                                                                                                
7:41:47 PM                                                                                                                    
                                                                                                                                
Representative Wilson noted that  the computer system change                                                                    
led to the  issues. She wondered if the  improvements in the                                                                    
database gave the director the  confidence to approve of the                                                                    
extension. Mr. Habegar admitted that  he was hopeful and had                                                                    
many IT specialists working on the issue.                                                                                       
                                                                                                                                
Co-Chair  Stoltze noted  fewer and  fewer problems  with the                                                                    
new director of boards and commissions.                                                                                         
                                                                                                                                
7:42:54 PM                                                                                                                    
                                                                                                                                
Representative  Kawasaki  asked  about the  salary  schedule                                                                    
changes and  the other boards  and commissions.  He wondered                                                                    
if  the department  would provide  staff for  the board.  He                                                                    
asked  if other  boards had  the latitude  to select  salary                                                                    
ranges for executive directors and staff.                                                                                       
                                                                                                                                
Mr.  Habegar replied  that salaried  positions  were set  by                                                                    
DOA;  however the  Certified Public  Accountant (CPA)  board                                                                    
did address  the issue  by placing a  range in  statute. The                                                                    
salary raise  was not allowed outside  of the administration                                                                    
process and he believed that  the board was taking advantage                                                                    
of the CPA model.                                                                                                               
                                                                                                                                
7:44:18 PM                                                                                                                    
                                                                                                                                
Representative Gara asked about  the small medical community                                                                    
and the  difficulty with doctors realizing  that another had                                                                    
breached  duties.  He  wondered   about  an  outside  doctor                                                                    
brought in to  do an evaluation. Mr.  Habegar responded that                                                                    
occasionally an  outside doctor comes  in and in  a standard                                                                    
of care issue; staff had  certain liaisons that would advise                                                                    
staff. If  the case investigation did  require experts, they                                                                    
were hired outside of the state.                                                                                                
                                                                                                                                
7:46:51 PM                                                                                                                    
                                                                                                                                
Representative Gara encouraged the practice.                                                                                    
                                                                                                                                
Co-Chair Stoltze CLOSED public testimony.                                                                                       
                                                                                                                                
Co-Chair  Stoltze asked  about  objections  to changing  the                                                                    
sunset date. Representative Wilson stated no.                                                                                   
                                                                                                                                
7:48:21 PM                                                                                                                    
                                                                                                                                
Representative  Costello  discussed  the fiscal  note  which                                                                    
indicated  fiscal  impact  of  $484.6  thousand  for  FY  14                                                                    
through FY 19 and two full time positions.                                                                                      
                                                                                                                                
Co-Chair Stoltze  asked if the  benefits would  be increased                                                                    
to $110 thousand.                                                                                                               
                                                                                                                                
Representative Costello  MOVED to  REPORT CSSB 38  (FIN) out                                                                    
of  committee   with  individual  recommendations   and  the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSSB  38 (FIN)  was REPORTED  out of  committee with  a "no"                                                                    
recommendation  and  with  one previously  published  fiscal                                                                    
impact note: FN1(CED).                                                                                                          
                                                                                                                                

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