Legislature(2013 - 2014)BELTZ 105 (TSBldg)

02/07/2013 01:30 PM Senate LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 16 BD OF ARCHITECTS, ENGINEERS, SURVEYORS TELECONFERENCED
Heard & Held
*+ SB 38 EXTEND STATE MEDICAL BOARD TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
         SB  16-BD OF ARCHITECTS, ENGINEERS, SURVEYORS                                                                      
                                                                                                                                
1:30:53 PM                                                                                                                    
CHAIR DUNLEAVY announced the consideration of SB 16.                                                                            
                                                                                                                                
SENATOR CATHY GIESSEL, sponsor of SB 16, introduced SB 16                                                                       
speaking to the following sponsor statement: [Original                                                                          
punctuation provided.]                                                                                                          
                                                                                                                                
     SB   16   revises    statutes   governing   architects,                                                                    
     engineers, and land surveyors  in Alaska, designating a                                                                    
     full-time  investigator  specifically   for  the  State                                                                    
     Board  of Registration  for Architects,  Engineers, and                                                                    
     Land Surveyors (AELS).                                                                                                     
                                                                                                                                
     The AELS Board's mission, as  defined in statute, is to                                                                    
     protect public  health, safety and welfare  by ensuring                                                                    
     that  those  entering  the practices  of  architecture,                                                                    
     engineering, and land  surveying meet minimum standards                                                                    
     of  competency,  and  maintain those  standards  during                                                                    
     their practice,  by requiring licensure to  practice in                                                                    
     the  state.  The  Board   enforces  the  licensure  and                                                                    
     competency  requirements  and  responds  to  complaints                                                                    
     brought by the public.                                                                                                     
                                                                                                                                
     Currently,   the  AELS   Board  shares   one  part-time                                                                    
     investigator  with  six  other boards  that  oversee  a                                                                    
     total  of 18,095  licensees, of  which 6,439  licensees                                                                    
     are under the AELS Board.                                                                                                  
                                                                                                                                
     According  to  the  board,   because  of  the  negative                                                                    
     economic  conditions in  various  parts  of the  United                                                                    
     States,  a  significant   number  of  corporations  and                                                                    
     individuals  are  relocating  to Alaska  and  many  are                                                                    
     practicing  without proper  licensure  or knowledge  of                                                                    
     applicable  statutes and  regulations.  In 2012  alone,                                                                    
     the  AELS   Board  added  490  new   licensees  to  its                                                                    
     oversight.                                                                                                                 
                                                                                                                                
     In  addition to  the already  growing workload  for the                                                                    
     part-time  AELS  Board  investigator, pressure  on  the                                                                    
     investigator to spend  time on the other  six boards to                                                                    
     which   he  is   also  assigned   is  increasing.   The                                                                    
     efficiency and  effectiveness of the  State's licensing                                                                    
     investigation  process  is   further  reduced  by  only                                                                    
     having a  single shared investigator who  must maintain                                                                    
     knowledge of  the various  statutes and  regulations of                                                                    
     seven different boards.                                                                                                    
                                                                                                                                
     SB  16 also  removes the  constraint that  examinations                                                                    
     for   licensure  be   written.  With   advancements  in                                                                    
     technology,  examinations are  moving to  an electronic                                                                    
     format which will further increase efficiency.                                                                             
                                                                                                                                
     SB  16 will  better equip  the AELS  Board to  maintain                                                                    
     proper oversight  of its licensees, thereby  uphold the                                                                    
     reputation and integrity of  the disciplines within its                                                                    
     purview, and  ultimately ensure its ability  to protect                                                                    
     public health, safety, and welfare.                                                                                        
                                                                                                                                
SENATOR GIESSEL noted  that in the last 18 months  the AELS Board                                                               
opened  116  cases  alleging unprofessional  conduct,  unlicensed                                                               
practice or  violation of  licensing regulations.  She referenced                                                               
the  fiscal  note  and reminded  the  committee  that  regulatory                                                               
boards  have  to  be self-supporting.  Therefore,  the  costs  of                                                               
operation   including  per   diem,  travel   expenses,  and   the                                                               
investigator,  have to  be  covered by  the  licensees. The  AELS                                                               
Board  has some  carry-forward funds  to cover  initial costs  so                                                               
passage of  the bill will  not increase licensee fees  this year.                                                               
Current license fees  are $125 every two years  and the estimated                                                               
increase,  when enacted  in two  years,  will be  minimal as  the                                                               
costs will be spread over those 6,439 licensees.                                                                                
                                                                                                                                
1:36:42 PM                                                                                                                    
SENATOR OLSON asked  how she could justify adding  two more state                                                               
employees when there is a push to reduce the state's budget.                                                                    
                                                                                                                                
SENATOR GIESSEL  explained that  while the  bill talks  about two                                                               
persons,  one is  currently employed  as executive  secretary and                                                               
the board  already has  a part-time  investigator. All  the costs                                                               
will be  distributed among the  licensees under  the jurisdiction                                                               
of  the  various  boards.  This will  not  increase  the  state's                                                               
budget.                                                                                                                         
                                                                                                                                
1:38:17 PM                                                                                                                    
SENATOR OLSON pointed out that  the fiscal note reflects costs of                                                               
$115,500 in  FY14 and $110,500  each year thereafter  until FY19.                                                               
He asked if he was misreading the note.                                                                                         
                                                                                                                                
SENATOR  GIESSEL responded  that the  fiscal note  includes costs                                                               
for  supplies, one-time  start up  fees, and  a computer  but the                                                               
cost  for  personnel will  be  covered  by boards.  She  deferred                                                               
technical questions to Mr. Habeger,  the director of the Division                                                               
of Corporations, Business and Professional Licensing.                                                                           
                                                                                                                                
SENATOR MICCICHE how many individuals are licensed.                                                                             
                                                                                                                                
SENATOR GIESSEL  replied there  are slightly  more than  6,400 in                                                               
the AELS  Board. She  added that 18,000  licensees right  now are                                                               
covered by just one investigator.                                                                                               
                                                                                                                                
SENATOR  MICCICHE calculated  that this  would add  approximately                                                               
$20 per  person with  much better service  and less  liability to                                                               
the department.                                                                                                                 
                                                                                                                                
SENATOR GIESSEL agreed and added that it's for two years.                                                                       
                                                                                                                                
SENATOR   OLSON  asked   how   many   violations  the   half-time                                                               
investigator had encountered and how many resulted in fines.                                                                    
                                                                                                                                
SENATOR GIESSEL  replied that 116  cases were opened in  the last                                                               
18 months.                                                                                                                      
                                                                                                                                
1:40:22 PM                                                                                                                    
COLIN MAYNARD, licensed engineer  representing the State Board of                                                               
Registration  for  Architects,  Engineers,  and  Land  Surveyors,                                                               
explained  the conditions  that led  to the  bill. About  four or                                                               
five  years   ago  there  were   two  and  one-half   persons  to                                                               
investigate  cases for  six boards.  Through  attrition that  has                                                               
been reduced to  the equivalent of one-sixth  of one investigator                                                               
for the  AELS Board. The  workload is  heavy; 13 cases  have been                                                               
opened  in the  last quarter  and the  investigator now  oversees                                                               
requirements  for  nine  new engineering  disciplines.  With  the                                                               
economic  downturn in  the Lower  48,  unlicensed practices  have                                                               
increased  in the  state  but the  workload  generally keeps  the                                                               
investigator  attached to  the Anchorage  office with  occasional                                                               
trips  to the  Mat-Su Valley  and Kenai  Peninsula. The  positive                                                               
impact of having  one investigator assigned to the  AELS Board is                                                               
that  all  areas  of  the   state  will  see  investigations.  He                                                               
highlighted that the  cost of the investigator would  be borne by                                                               
licensee  fees and  that he  hadn't heard  from any  professional                                                               
societies that were unwilling to  pay the additional $20 over two                                                               
years to ensure that licensing laws are enforced.                                                                               
                                                                                                                                
MR.  MAYNARD said  the bill  also  amends the  statute to  remove                                                               
reference   to   a   "written  examination"   to   reflect   that                                                               
examinations  are moving  to  electronic  format. The  architects                                                               
have  not had  a written  examination for  several years  and the                                                               
fundamentals of  engineering exam will be  electronic starting in                                                               
April 2014.  He noted that  one person complained that  he failed                                                               
the licensing  test because he  was not given the  opportunity to                                                               
take a written test.                                                                                                            
                                                                                                                                
1:43:51 PM                                                                                                                    
DON  HABEGER, Director,  Division of  Corporations, Business  and                                                               
Professional  Licensing, Department  of  Commerce, Community  and                                                               
Economic Development (DCCED), offered to answer questions.                                                                      
                                                                                                                                
SENATOR  OLSON asked  how he  justified  the recurring  six-digit                                                               
cost of the bill when state revenues were declining.                                                                            
                                                                                                                                
MR. HABEGER  said the sponsor's  testimony was  correct; licensee                                                               
fees cover the cost of the  services. By statute, the division is                                                               
required to  annually review  the programs  and look  at revenues                                                               
and  expenses  before  adjusting  the fees.  He  noted  that  the                                                               
correct terminology was fee-supported services.                                                                                 
                                                                                                                                
SENATOR OLSON pointed out that  the licensee fees would not cover                                                               
the  [$115,500 first  year cost  and $110,500  out-year estimated                                                               
costs].                                                                                                                         
                                                                                                                                
MR.  HABEGER responded  that the  fees would  be adjusted  at the                                                               
next licensing cycle to capture the additional expenses.                                                                        
                                                                                                                                
SENATOR OLSON  asked how many  fines were levied compared  to the                                                               
number of cases filed.                                                                                                          
                                                                                                                                
MR. HABEGER offered to follow up with the information.                                                                          
                                                                                                                                
1:47:36 PM                                                                                                                    
SENATOR  OLSON   asked  if   he  would   agree  that   adding  an                                                               
investigator would increase the number  of filings and add to the                                                               
costs that licensees would have to shoulder.                                                                                    
                                                                                                                                
MR.  HABEGER  agreed  and  then  noted that  the  line  item  for                                                               
"services"   in   the    fiscal   note   anticipated   additional                                                               
expenditures for  expert witnesses and  use of the  Department of                                                               
Law. He  established that  the investigators  are experts  in the                                                               
statutes  and regulations;  they are  not necessarily  experts in                                                               
the subject matter.                                                                                                             
                                                                                                                                
SENATOR  OLSON asked  if he  anticipated that  more people  would                                                               
fail the computerized tests.                                                                                                    
                                                                                                                                
MR. HABEGER explained that the AELS  board belongs to a number of                                                               
national  associations that  develop  tests  with expertise  from                                                               
various  license  practices  across the  nation.  These  national                                                               
tests, which  are contracted through  state boards,  are tailored                                                               
for  the specific  jurisdiction.  The tests  are administered  by                                                               
computer at designated testing sites.                                                                                           
                                                                                                                                
SENATOR OLSON asked  if someone in Nome could take  the test at a                                                               
hub site.                                                                                                                       
                                                                                                                                
MR. HABEGER offered to follow up with an answer.                                                                                
                                                                                                                                
SENATOR MICCICHE asked to have  Mr. Maynard return to the witness                                                               
table to answer Senator Olson's questions.                                                                                      
                                                                                                                                
1:51:21 PM                                                                                                                    
MR. MAYNARD  explained that the AELS  Board is a member  of three                                                               
national  licensing associations  that write  national tests  for                                                               
engineers  and surveyors,  architects, and  landscape architects.                                                               
These tests are given twice a  year in Anchorage and Fairbanks at                                                               
secure testing  sites. This  will not change  when all  the tests                                                               
are computerized because  there are too few  registrants in other                                                               
locations. He  confirmed that  somebody from  Nome who  wanted to                                                               
take the test would have to  go to either Anchorage or Fairbanks.                                                               
He  reiterated that  these are  national tests  and the  computer                                                               
exam  is  not  more  difficult than  the  written  exam,  they're                                                               
written by the same people.                                                                                                     
                                                                                                                                
SENATOR  OLSON  asked for  clarification  that  both written  and                                                               
computerized  tests  were  administered   only  in  Anchorage  or                                                               
Fairbanks.                                                                                                                      
                                                                                                                                
MR. MAYNARD said yes.                                                                                                           
                                                                                                                                
1:53:22 PM                                                                                                                    
DALE NELSON, registered  professional civil engineer, Legislative                                                               
Liaison  Committee, Alaska  Professional  Design Council  (APDC),                                                               
Anchorage,  AK, testified  in  support  of SB  16.  He said  this                                                               
legislation has  been discussed  in the  committees and  the APDC                                                               
newsletter.  He  confirmed  that   the  members  understand  that                                                               
license fees would increase if this bill were to pass.                                                                          
                                                                                                                                
SENATOR OLSON asked how many  of the 6,500 licensees were opposed                                                               
to this legislation.                                                                                                            
                                                                                                                                
MR. NELSON replied he had heard no opposition.                                                                                  
                                                                                                                                
1:55:59 PM                                                                                                                    
JANET  MATHESON,  registered   professional  architect,  American                                                               
Institute  Architects  Alaska  Chapter  (AIAAC),  Fairbanks,  AK,                                                               
testified in  support of  SB 16.  She said  AIAAC feels  there is                                                               
need  for a  full-time investigator.  People come  to Alaska  and                                                               
want  comity registration  only to  find that  they have  to know                                                               
Arctic  and  seismic  engineering.   She  highlighted  that  when                                                               
someone  chooses  to  work outside  their  discipline  there  are                                                               
issues of  public safety. Another  problem is that  outside firms                                                               
sometimes acquire  projects in the  state but do not  have people                                                               
who  are registered  in Alaska.  She continued  that it's  also a                                                               
problem  that  the  investigator  is only  concentrating  on  the                                                               
Anchorage Bowl, which leaves other  areas of the state without an                                                               
investigator. She maintained  that Alaska should stay  up to date                                                               
on its  examinations, and pointed  out that all  the professional                                                               
architect tests were electronic.                                                                                                
                                                                                                                                
1:58:06 PM                                                                                                                    
CHAIR DUNLEAVY  announced that he  would hold SB 16  in committee                                                               
and keep public testimony open.                                                                                                 
                                                                                                                                

Document Name Date/Time Subjects
SB 16 - AELS Board Position Paper on Investigator - January 18, 2013.pdf SL&C 2/7/2013 1:30:00 PM
SB 16
SB 16 - Letter of Support - Burdett Lent.pdf SL&C 2/7/2013 1:30:00 PM
SB 16
SB 16 - Sectional Analysis.pdf SL&C 2/7/2013 1:30:00 PM
SB 16
SB 16 - Version U.pdf SL&C 2/7/2013 1:30:00 PM
SB 16
SB 38 - AS 08.64.PDF SL&C 2/7/2013 1:30:00 PM
SB 38
SB 38 - LB&A Sunset Review.PDF SL&C 2/7/2013 1:30:00 PM
SB 38
SB 38 - State Medical Board Fact Sheet.PDF SL&C 2/7/2013 1:30:00 PM
SB 38
SB 38 - State Medical Board Website.PDF SL&C 2/7/2013 1:30:00 PM
SB 38
SB 38.PDF SL&C 2/7/2013 1:30:00 PM
SB 38
SB038-DCCED-CBPL-02-01-13.pdf SL&C 2/7/2013 1:30:00 PM
SB 38
SB016-DCCED-CBPL-02-01-13.pdf SL&C 2/7/2013 1:30:00 PM
SB 16
SB 16 - Letter of Support - Harley Hightower.pdf SL&C 2/7/2013 1:30:00 PM
SB 16
SB 16 - Letter of Support - Richard Heieren.pdf SL&C 2/7/2013 1:30:00 PM
SB 16
SB 16 - Letter of Support - Richard Heieren.pdf SL&C 2/7/2013 1:30:00 PM
SB 16