Legislature(2013 - 2014)SENATE FINANCE 532

03/14/2013 09:00 AM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 62 SCHOOL CONST. GRANTS/SMALL MUNICIPALITIES TELECONFERENCED
Heard & Held
+ SB 38 EXTEND STATE MEDICAL BOARD TELECONFERENCED
Moved CSSB 38(FIN) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
= SB 21 OIL AND GAS PRODUCTION TAX
Moved CSSB 21(FIN) Out of Committee
SENATE BILL NO. 38                                                                                                            
                                                                                                                                
     "An Act extending the termination date of the State                                                                        
     Medical Board; and providing for an effective date."                                                                       
                                                                                                                                
9:11:12 AM                                                                                                                    
                                                                                                                                
Senator  Olson appreciated  the committee  hearing the  bill                                                                    
and  stated that  it was  important to  the state's  medical                                                                    
profession.                                                                                                                     
                                                                                                                                
DAVID  SCOTT, STAFF,  SENATOR DONNY  OLSON, stated  that the                                                                    
bill extended the  sunset of the Alaska  State Medical Board                                                                    
from  June 30,  2013  to  June 30,  2020.  He discussed  the                                                                    
makeup of the Alaska State  Medical Board and shared that it                                                                    
was   responsible  for   the   licensing,  regulation,   and                                                                    
discipline    of   physicians,    podiatrists,   physician's                                                                    
assistants,  and paramedics  in Alaska.  He related  that an                                                                    
audit,  which  had  recently   been  conducted  through  the                                                                    
Division  of  Legislative  Audit had  recommended  that  the                                                                    
sunset  be extended.  He indicated  that  there was  someone                                                                    
present from the division to  answer questions regarding the                                                                    
change.                                                                                                                         
                                                                                                                                
9:13:41 AM                                                                                                                    
                                                                                                                                
Co-Chair  Kelly  MOVED  to   ADOPT  the  proposed  committee                                                                    
substitute  for  SB  38,  WORK  DRAFT  28-LS0391\U  (Martin,                                                                    
3/12/13). There being NO OBJECTION,  the CS was ADOPTED as a                                                                    
working document.                                                                                                               
                                                                                                                                
KRIS  CURTIS, LEGISLATIVE  AUDITOR, DIVISION  OF LEGISLATIVE                                                                    
AUDIT, stated  that during the  past year, the  division had                                                                    
conducted a sunset audit (copy  on file) of the Alaska State                                                                    
Medical Board  with the purpose  of determining  whether the                                                                    
board  was  serving  the public's  interest  and  should  be                                                                    
extended. She  indicated to the  committee that  her manager                                                                    
would continue reading her talking points.                                                                                      
                                                                                                                                
DIANE  BURNHAM,  AUDIT   MANAGER,  DIVISION  OF  LEGISLATIVE                                                                    
AUDIT, stated that the division  recommended that the Alaska                                                                    
State Medical  Board's termination date be  extended 7 years                                                                    
until  June 30,  2020. The  recommendation was  1 year  less                                                                    
than  the 8-year  maximum in  recognition of  1 new  finding                                                                    
related to  continuing medical education (CME)  reviews. She                                                                    
shared that during  the audit period, the  medical board had                                                                    
gone through 2  bi-annual licensing cycles and that  in 1 of                                                                    
those  cycles, the  Division of  Corporations, Business  and                                                                    
Professional  Licensing (DCBPL)  had  failed  to review  CME                                                                    
requirements   in    accordance   with    the   regulations;                                                                    
regulations had required that 208  or 5 percent of licensees                                                                    
be  reviewed, but  the staff  had  only reviewed  172, or  4                                                                    
percent  of  licensees.  She  expounded  that  the  division                                                                    
recommended  that   the  DCBPL  director  ensure   that  the                                                                    
quantity of  licenses selected for  review meet  the minimum                                                                    
required by regulations.                                                                                                        
                                                                                                                                
Ms.  Burnham  stated  that  the  report  also  included  two                                                                    
ongoing recommendations,  the first of which  was associated                                                                    
with   deficiencies   in   the  DCBPL   investigative   case                                                                    
management system;  the deficiencies  were noted  in several                                                                    
FY11  special  audits and  sunsets  audits;  this audit  had                                                                    
found  that several  investigative  cases  reviewed for  the                                                                    
medical  board were  missing key  information in  the system                                                                    
such  as priority  codes, case  open dates,  and resolutions                                                                    
codes.  She  continued that  the  deficiencies  in the  case                                                                    
management  system   hampered  the  division's   ability  to                                                                    
provide  adequate investigative  support  to  the board  and                                                                    
shared  that  the division  had  also  taken steps  to  make                                                                    
improvements by  forming a task forum  to identify necessary                                                                    
corrective action.                                                                                                              
                                                                                                                                
Ms.  Burnham   shared  that  the  report's   second  ongoing                                                                    
recommendation  was  for  the DCBPL  director  to  implement                                                                    
procedures to  ensure that  board disciplinary  actions were                                                                    
reported in accordance  with state and federal  law; the law                                                                    
required that  disciplinary actions be reported  to national                                                                    
data banks.  She expounded that  a previous audit  had found                                                                    
that not  all disciplinary  actions were being  reported and                                                                    
that some  were being reported  after the 30-day  limit. She                                                                    
explained  that   the  division's  review  had   found  some                                                                    
improvement  in that  all the  disciplinary actions  that it                                                                    
reviewed were report  to the data banks;  however, none were                                                                    
reported within the 30-day limit.                                                                                               
                                                                                                                                
Senator Olson  surmised that  the existence  of a  CME issue                                                                    
did not  necessarily compromise any licensee  or health care                                                                    
provider  and  inquired  if that  was  correct.  Ms.  Curtis                                                                    
replied   that   the   Division   of   Legislative   Audit's                                                                    
recommendation  had been  addressed  to the  DCBPL staff  to                                                                    
review  the applications  for renewal  and did  not indicate                                                                    
that there was any type of abuse occurring.                                                                                     
                                                                                                                                
Senator Olson commented that the  Alaska State Medical Board                                                                    
and DCBPL had done a superb job in the last 12 years.                                                                           
                                                                                                                                
Co-Chair Meyer CLOSED public testimony.                                                                                         
                                                                                                                                
9:18:54 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  noticed that the  bill proposed  an increase                                                                    
for the  Alaska State  Medical Board's  executive secretary.                                                                    
He  noted  that  the  increase   would  be  program  receipt                                                                    
supported and  that was  not too concerned  about it  if the                                                                    
sponsor was not; however he  requested an explanation of the                                                                    
increase.  Mr. Scott  responded  that the  sponsor had  been                                                                    
approached  by the  president of  the  Alaska State  Medical                                                                    
Board's regarding  the increase.  He related that  the scope                                                                    
and volume of the work  being done by the executive director                                                                    
was not  on parody  with other similar  boards and  that the                                                                    
state medical board  had requested the sponsor  to offer the                                                                    
increase. He stated  that Ed Hall, who was  the president of                                                                    
the  state  medical  board,  should   be  online  to  answer                                                                    
questions.                                                                                                                      
                                                                                                                                
Vice-Chair  Fairclough  inquired  what  the  current  salary                                                                    
scale was  for the  position, as well  as what  the proposed                                                                    
increase was. Mr. Scott replied  that the current salary was                                                                    
a range 17 and that it was being increased to a range 23.                                                                       
                                                                                                                                
Vice-Chair Fairclough noted that  the difference in pay from                                                                    
a range 17  to a range 23  was a big jump  and inquired what                                                                    
that increase  represented in dollar  terms. She  noted that                                                                    
the increase would  use program receipts and  queried if the                                                                    
the  president was  acting on  behalf of  the state  medical                                                                    
board when  he had made  the request. She observed  that the                                                                    
position was for a full-time  executive secretary and not an                                                                    
executive director.                                                                                                             
                                                                                                                                
Senator Olson  clarified that the  president of  board would                                                                    
be the best suited to answer the question.                                                                                      
                                                                                                                                
9:21:28 AM                                                                                                                    
                                                                                                                                
ED HALL,  PHYSICIAN ASSISTANT  AND FORMER  PRESIDENT, ALASKA                                                                    
STATE MEDICAL BOARD,  ANCHORAGE (via teleconference), stated                                                                    
that the medical board had  collectively discussed the range                                                                    
increase and  recognized that the responsibilities  that had                                                                    
been  placed  on  the board's  executive  administrator  had                                                                    
continually  increased;  furthermore,  over this  time,  the                                                                    
range of the position had  not been increased. He understood                                                                    
that the  position was currently  at a range 18  and related                                                                    
that the Board of Public  Accountancy (CPA Board) had passed                                                                    
a bill to  bring its executive administrator to  a range 23.                                                                    
He  offered  that  a  range  18  was  the  equivalent  of  a                                                                    
legislative front  desk receptionist  and conveyed  that the                                                                    
board   had   collectively   agreed   that   its   executive                                                                    
administrator's  responsibilities  far  exceeded that  of  a                                                                    
receptionist's;       furthermore,      the       position's                                                                    
responsibilities   and   the   number  of   licensees   were                                                                    
increasing and  the board  had concerns  regarding retention                                                                    
of the  medical providers  in the  state. He  expounded that                                                                    
the medical  board needed to  continue to keep up  pace with                                                                    
the   processing  of   applications,  which   the  executive                                                                    
administrator was an  integral part of. He  related that the                                                                    
fiscal  costs  for  the  increase   would  be  paid  by  the                                                                    
licensees, but  that he did  not think it would  represent a                                                                    
significant hit to  the licensing fees. He  pointed out that                                                                    
for the past several years,  the board had been rolling over                                                                    
more  than $1  million,  which was  why  it was  comfortable                                                                    
asking for  the range  increase. He  discussed the  need for                                                                    
the   medical  board   to  maintain   a  quality   executive                                                                    
administrator and shared  that licensing examiners' salaries                                                                    
were not on  parody either; DCBPL was trying  to improve the                                                                    
examiners'  salaries to  address retention  issues and  high                                                                    
attrition rate.                                                                                                                 
                                                                                                                                
9:25:56 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough pointed  out for  the record  that it                                                                    
was  her  experience  that  front   desk  positions  in  the                                                                    
legislature were usually around a range 14.                                                                                     
                                                                                                                                
Co-Chair Meyer  inquired how many  staff members  there were                                                                    
total and observed that the  fiscal note showed 2. Mr. Scott                                                                    
responded that there were two  staff members, but that there                                                                    
was other support that the  board received through DCBPL and                                                                    
the   Department  of   Commerce,   Community  and   Economic                                                                    
Development.  He  added  that   Mr.  Habegar,  who  was  the                                                                    
director  of  DCBPL,  could  probably  answer  the  question                                                                    
better.                                                                                                                         
                                                                                                                                
Senator  Olson  stated  that  some   of  the  support  staff                                                                    
included investigators.                                                                                                         
                                                                                                                                
9:27:49 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:29:13 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:29:21 AM                                                                                                                    
                                                                                                                                
Vice-Chair Fairclough pointed  to page 8 of  the Division of                                                                    
Legislative Audit's report and inquired  if Mr. Hall had the                                                                    
report on  hand. Mr. Hall replied  that he did not  have the                                                                    
document in front of him.                                                                                                       
                                                                                                                                
Vice-Chair Fairclough  read from  a paragraph  on page  8 of                                                                    
the report:                                                                                                                     
                                                                                                                                
     ..Deficiencies in the division's investigative case                                                                        
     management system have not been addressed.                                                                                 
                                                                                                                                
Vice-Chair  Fairclough continued  to discuss  page 8  of the                                                                    
Division  of Legislative  Audit's report.  She related  that                                                                    
the  report  discussed a  medical  board  special audit  and                                                                    
pointed out that while the  board was coming into compliance                                                                    
slowly,  it appeared  as if  there were  still a  few issues                                                                    
being raised; she inquired if  Mr. Hall could speak to those                                                                    
issues. Mr.  Hall replied  that investigative  processes had                                                                    
changed and  that the  board had a  better system  of checks                                                                    
and balances  to make  sure that  reporting to  the National                                                                    
Practitioner Data  Bank had improved.  He observed  that Mr.                                                                    
Habegar  may  be better  suited  to  speak to  investigative                                                                    
staff issues.                                                                                                                   
                                                                                                                                
Vice-Chair  Fairclough   noted  that  it   was  specifically                                                                    
recommended on page  8 of the legislative  audit report that                                                                    
the  state   medical  medical  board   establish  regulatory                                                                    
timeliness  for processing  complaints and  inquired if  the                                                                    
board had discussed this. Mr.  Hall responded that the issue                                                                    
had  been addressed  and that  timely reporting  was another                                                                    
responsibility that had been given  to the board's executive                                                                    
administrator.                                                                                                                  
                                                                                                                                
Vice-Chair Fairclough  inquired if  the same  individual who                                                                    
had been  the executive administrator  in the past  would be                                                                    
continuing forward  in the  position with  a pay  raise. Mr.                                                                    
Hall  replied that  the board  hoped that  was the  case and                                                                    
added that he did not think  that the person was planning on                                                                    
moving on soon despite what the  board saw as a disparity in                                                                    
the position's pay-range level.                                                                                                 
                                                                                                                                
Vice-Chair Fairclough inquired if  the position's hours were                                                                    
being expanded. Mr. Hall replied  that he was not certain if                                                                    
the position's hours  had been expanded, but  that the board                                                                    
did  have that  individual  attend the  Federation of  State                                                                    
Medical Boards' meeting, which was  an annual occurrence, as                                                                    
well as other appropriate trainings that were necessary.                                                                        
                                                                                                                                
9:32:43 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough  stated  that  she  did  not  have  a                                                                    
problem  with   the  advancement  of  the   medical  board's                                                                    
executive assistant's  pay range; however, if  the issue was                                                                    
that  the same  person who  was working  the same  amount of                                                                    
hours could  not accomplish the  task because they  were not                                                                    
being  paid enough,  then  she had  problem  with that.  She                                                                    
observed that  someone should be doing  their job regardless                                                                    
and wondered  if, given the  limited number of hours  in the                                                                    
day and the large raise,  the board might need another staff                                                                    
member;  however, she  supported the  board's extension  and                                                                    
would leave it  up to the board itself and  Senator Olson to                                                                    
make sure  the appropriate  tools were available  to address                                                                    
the  issues that  auditors had  identified as  weaknesses in                                                                    
the program.                                                                                                                    
                                                                                                                                
Senator Olson  agreed with  Vice-Chair Fairclough's  line of                                                                    
questioning  and noted  that he  was  also cautious  because                                                                    
from his  perspective, the salary  raise would  represent an                                                                    
increase  to  his  annual  fees   and  licensure  costs.  He                                                                    
understood that  there was turnover within  the "department"                                                                    
because  the   salary  was   not  commensurate   with  other                                                                    
executive  administrators and  inquired if  that was  one of                                                                    
the reasons that  the increase had been  requested. Mr. Hall                                                                    
responded that during his tenure,  the medical board had two                                                                    
executive  administrators and  that the  recognition of  the                                                                    
position's work for the board was continually increasing.                                                                       
                                                                                                                                
Mr.   Hall   addressed  Vice-Chair   Fairclough's   comments                                                                    
regarding  hours spent.  He shared  that, unofficially,  the                                                                    
person currently in  that position did their  job within the                                                                    
8-hour work  day, but also  worked beyond that.  He surmised                                                                    
that the  board's executive administrator  had not  "seen an                                                                    
8-hour  day" in  quite  a while.  He  stated that  regarding                                                                    
turnover, both  of the  executive administrators  during his                                                                    
tenure had been very dedicated  to the medical board and its                                                                    
business and  explained that despite a  dissatisfaction with                                                                    
the range level, the employees  had been committed for other                                                                    
reasons.                                                                                                                        
                                                                                                                                
9:36:03 AM                                                                                                                    
                                                                                                                                
Co-Chair Kelly MOVED  to REPORT SB 38 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 "do pass"                                                                    
recommendation  and  with   a  previously  published  fiscal                                                                    
impact note: FN1(CED).                                                                                                          
                                                                                                                                
9:36:39 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:39:56 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
SB 62 - ADM and Full Values by Muni.pdf SFIN 3/14/2013 9:00:00 AM
SB 62
SB 62 - Kasayulie v. Alaska Consent Decree and Settlement Agreement.pdf SFIN 3/14/2013 9:00:00 AM
SB 62
SB 62 - Sectional.docx SFIN 3/14/2013 9:00:00 AM
SB 62
SB 62 - Sponsor Statement.docx SFIN 3/14/2013 9:00:00 AM
SB 62
SB062-EED-ESS-3-1-13.pdf SFIN 3/14/2013 9:00:00 AM
SB 62
CS SB 38.pdf SFIN 3/14/2013 9:00:00 AM
SB 38
SB 38 - AS 08.64.PDF SFIN 3/14/2013 9:00:00 AM
SB 38
SB 38 - LB&A Sunset Review.PDF SFIN 3/14/2013 9:00:00 AM
SB 38
SB 38 - Sponsor Statement.doc SFIN 3/14/2013 9:00:00 AM
SB 38
SB 38 - State Medical Board Fact Sheet.PDF SFIN 3/14/2013 9:00:00 AM
SB 38
SB 38 - State Medical Board Website.PDF SFIN 3/14/2013 9:00:00 AM
SB 38
SB062-EED-FundTransfer-3-13-13 (3).pdf SFIN 3/14/2013 9:00:00 AM
SB 62
SB 21 - CS (FIN) Version Y.pdf SFIN 3/14/2013 9:00:00 AM
SB 21
SB021CS(FIN)-DNR-DOG-3-12-13.pdf SFIN 3/14/2013 9:00:00 AM
SB 21
SB021CS(FIN)-DOR-TAX-03-14-13.pdf SFIN 3/14/2013 9:00:00 AM
SB 21
Econ One Presentation For Senate Finance (3-14-13).pdf SFIN 3/14/2013 9:00:00 AM
SB 21
PFC SFIN 14 March 2013.pptx SFIN 3/14/2013 9:00:00 AM
SB 21
SB 21 Conoco Phillips SFIN 031413.pdf SFIN 3/14/2013 9:00:00 AM
SB 21
SB 21 DOR Presentation CostFcastSFIN_v4_edjt_20130314.pdf SFIN 3/14/2013 9:00:00 AM
SB 21
SB 21 Amendment 1 Kelly Y.7.pdf SFIN 3/14/2013 9:00:00 AM
SB 21
SB021CS(FIN)-DOR-COMM-03-14-13.pdf SFIN 3/14/2013 9:00:00 AM
SB 21
SB 21 summary sheet changes for new SEN FIN.pdf SFIN 3/14/2013 9:00:00 AM
SB 21
PFC SFIN 17 March 2013.pdf SFIN 3/14/2013 9:00:00 AM
SB 21