Legislature(2017 - 2018)SENATE FINANCE 532
04/13/2018 01:30 PM Senate FINANCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| HB323 | |
| HB318 | |
| HB110 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 110 | TELECONFERENCED | |
| += | HB 318 | TELECONFERENCED | |
| += | HB 323 | TELECONFERENCED | |
CS FOR HOUSE BILL NO. 110(L&C)
"An Act relating to the Board of Massage Therapists;
relating to the practice of massage therapy; relating
to massage therapy establishments; relating to the
Department of Commerce, Community, and Economic
Development; and providing for an effective date."
5:19:01 PM
CRYSTAL KOENEMAN, STAFF, REPRESENTATIVE SAM KITO (via
teleconference), discussed the bill. The bill was brought
forward by the Board of Massage Therapy, which was newly
established in 2015. She referenced the recent board
extension, at which time some licensure issues came
forward. The bill would address the issues to more
effectively license members of the profession, give the
board better oversight, and protect Alaskans.
Ms. Koeneman continued discussing the bill. She relayed
that the bill would require the Board of Massage Therapy to
adopt regulations covering massage therapy establishments;
which would give authorities the tools needed to shut down
operations of human trafficking and prostitution that tried
to use massage therapy as a front. In 2015 the board
learned from the Federal Bureau of Investigation (FBI) that
there were 35 businesses in Anchorage that were used as a
front for human trafficking. Regulating massage
establishments gave the board an additional tool in order
to hold owners of the establishments accountable.
Ms. Koeneman relayed that the bill would increase the
minimum course of study from 500 hours to 625 hours, which
was in line with national standards. In 2012, national
massage therapy associations met and had developed new
standards for the industry. One recommendation was to
increase the required course hours, but the information had
not been available at the time the original legislation
passed. All three massage schools in Alaska would exceed
the minimum course hours requirement. The bill also reduced
the minimum required safety education which covered blood-
borne pathogen coursework, in order to address redundancy.
Ms. Koeneman detailed that there was a change to the bill
in the other body that would remove a restriction that
prevented members having served on prior boards. The bill
also modified the bi-annual fingerprint requirement to
every six years, which would decrease burden on licensees
but would still gave the board adequate oversight to
continue background checks.
5:24:10 PM
Co-Chair MacKinnon OPENED public testimony.
5:24:44 PM
DAVID EDWARDS-SMITH, CHAIR, BOARD OF MASSAGE THERAPISTS,
SOLDOTNA (via teleconference), spoke in support of the
bill.
Co-Chair MacKinnon asked if Mr. Edwards-Smith could speak
to the fingerprinting issue.
Mr. Edwards-Smith stated that HB 110 would reduce the
burden of a renewing licensee having to redo fingerprinting
every period. He felt fingerprinting was very important for
background checks, but thought reducing it to every three
cycles would be adequate.
Co-Chair MacKinnon asked Mr. Edwards-Smith if the board had
any problem with chain-of-custody with fingerprints.
Mr. Edwards-Smith referenced a letter from Sara Chambers,
Deputy Director, DCBPL (copy on file) that indicated the
division was looking to make improvements including a board
recommendation to accept a certain type of finger printers.
He discussed the concept of chain-of-custody and
recommendations.
5:28:20 PM
Co-Chair MacKinnon referenced a letter from the Americans
For Prosperity group (copy on file) that supported reducing
the number of required course hours. She asked if he could
speak to the board's discussion on the matter.
Mr. Edwards-Smith stated that the 625 required course hours
proposed in the bill was a product of seven national
massage therapy organizations that had been active for many
years. The groups had done a study to look at the tests and
educational requirements for massage therapy. The
comprehensive study and other boards had determined 625
hours was a national standard.
5:31:08 PM
Co-Chair MacKinnon asked if the board anticipated that
other states would follow suit after the study was
disseminated. She questioned if other states believed 500
hours was adequate.
Mr. Edwards-Smith indicated that through conversation with
other states, the board understood that every single state
that was licensing massage therapy would like to change to
625 hours.
Co-Chair MacKinnon asked if the board had discussed the
issue and was supportive of the proposed 625 required
hours.
Mr. Edwards-Smith answered in the affirmative.
5:33:36 PM
Senator Micciche thought it seemed as though half of states
had 500 hours of required training. He preferred the
minimum adequate hours of training. He asked what could be
gained through the additional training.
Mr. Edwards-Smith asserted that additional education would
provide for a stronger therapist with backgrounds related
to pathology, anatomy and physiology, and technique. He
discussed proposed changes to curriculum, to better deal
with pathologies that had changed since the adoption of the
500-hour requirement.
Senator Micciche wished he had a list of all the states
required hours of education and training.
5:35:36 PM
Co-Chair MacKinnon CLOSED public testimony.
Vice-Chair Bishop asked if fingerprints changed.
Ms. Koeneman answered in the negative, and informed that
fingerprints were not kept on file, and so the fingerprints
would need to be reprocessed to be run through a national
background check program.
Co-Chair MacKinnon asked if Ms. Koeneman had any other
points to make on the fingerprinting change.
Ms. Koeneman offered that the current fingerprinting
process for boards under DCCED was the same that was in
place for a concealed carry permit. She noted that the FBI
had not flagged other boards over the fingerprinting
process but had flagged that of the Board of Massage
Therapy. She thought that appearances might suggest that
the process was less secure, but in reality the process was
secure.
Co-Chair MacKinnon referenced the aforementioned April 9,
2018 letter authored by Sara Chambers of DCCED, regarding
audit findings.
5:38:59 PM
Ms. Koeneman pointed out that there were 495 programs
throughout the country that offered massage therapy
coursework and certification. Of the 495, there were only
73 that fell below the 625 hours. Well over 400 programs
across the nation had over 625 hours required to cover all
the needed material for massage therapy certification.
5:39:45 PM
Vice-Chair Bishop discussed FN 2 from the Department of
Commerce, Community and Economic Development. For FY 19 the
cost was $10,800. In the out years, there would be a cost
of $4,600. He read from the fiscal note analysis on page 2:
HB 110 provides authority for the Board of Massage
Therapy to establish a license for massage therapy
establishments and to develop regulations for
licensing requirements. Regulating massage therapy
establishments intended to facilitate protection of
the pubic from businesses that engage in prostitution,
sex trafficking, and the employment of unlicensed
persons performing massage-therapy type activities.
If the bill passes the following expenses will be
incurred:
Travel: $4.6 (two trips per year to conduct onside
investigative inspections in out years)
Services: $10.8 (costs to amend regulations including
legal, printing and postage in the first year
The potential number of establishments affected by
this bill is unknown at this time. Future costs for
legal and hearing service expenses in out years are
unknown.
Professional licensing programs within the Division of
Corporations, Business and Professional Licensing are
funded by Receipt Supported Services, fund source 1156
Rcpt Svcs (DGF). Licensing fees for each occupation
are set per AS 08.01.065 so the total amount of
revenue collected approximately equals the
occupation's actual regulatory costs.
5:41:35 PM
Co-Chair MacKinnon thought she may have not spoken
accurately regarding revenue and expenses. Many of the
boards and licensees were providing DGF, and there had been
great concern that the budget should be cut, and she was
trying to make a distinction. The state brought in revenues
from licensees to support the work of the boards. She noted
that the Board of Massage Therapy's expenses for 2017 had
been $224,300.
5:43:13 PM
AT EASE
5:45:58 PM
RECONVENED
Co-Chair MacKinnon asked about total cost and total
expenses, and asked about a discussion of the board's
surplus.
Ms. McCullough explained that in FY 15, the program was new
and had not yet collected licensing fees. The board had
gone into a deficit position of $69,926 at the end of FY
15. When revenue was collected in FY 16, $586,230 was
brought in and there was a total expenditure of $254,892,
for an annual surplus of $331,338.
Ms. McCullough discussed expenditures and surpluses since
the inception of the board and collection of licensing
fees. At the end of FY 17, the board had a surplus balance
of $335,053. The department had completed a fee analysis,
and lowered fees so the board did not have to carry such a
high surplus.
5:48:26 PM
Co-Chair MacKinnon thought there had been a rate decrease.
Ms. McCullough reiterated that because of the large
surplus, the division tried to keep revenues and
expenditures as close as possible, as required by AS
08.01.065.
Co-Chair MacKinnon thanked Ms. McCullough for her work.
Vice-Chair Bishop MOVED to report CSHB 110(L&C) out of
Committee with individual recommendations and the
accompanying fiscal note.
Senator Micciche OBJECTED for discussion.
Senator Micciche discussed his objection. He stated that he
didn't normally support an increase to training
requirements. He thought there were many people in the
state that were looking for work and that additional
training added additional expense. He surmised that most of
the people in the industry supported the increase. He spoke
about DGF and clarified that the funds were generally from
Alaskans paying for a service.
Senator Micciche WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
CSHB 110(L&C) was REPORTED out of committee with a "do
pass" recommendation and with one previously published
fiscal note: FN2 (CED).
5:51:39 PM
AT EASE
5:53:41 PM
RECONVENED
Co-Chair MacKinnon discussed the schedule for the following
day.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 110 Massage Therapy Testimony.docx |
SFIN 4/13/2018 1:30:00 PM |
HB 110 |