Legislature(2013 - 2014)HOUSE FINANCE 519
04/10/2013 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB37 | |
| SB16 | |
| SB38 | |
| SB88 | |
| SB38 | |
| SB24 | |
| SB2 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 21 | TELECONFERENCED | |
| += | SB 18 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 37 | TELECONFERENCED | |
| += | SB 16 | TELECONFERENCED | |
| += | SB 38 | TELECONFERENCED | |
| += | SB 88 | TELECONFERENCED | |
| += | SB 2 | TELECONFERENCED | |
| += | SB 24 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
April 10, 2013
1:39 p.m.
1:39:26 PM
CALL TO ORDER
Co-Chair Stoltze called the House Finance Committee meeting
to order at 1:39 p.m.
MEMBERS PRESENT
Representative Alan Austerman, Co-Chair
Representative Bill Stoltze, Co-Chair
Representative Mark Neuman, Vice-Chair
Representative Mia Costello
Representative Bryce Edgmon
Representative Les Gara
Representative Lindsey Holmes
Representative Scott Kawasaki, Alternate
Representative Cathy Munoz
Representative Steve Thompson
Representative Tammie Wilson
MEMBERS ABSENT
Representative David Guttenberg
ALSO PRESENT
Senator Anna Fairclough; Laura Pierre, Staff, Senator Anna
Fairclough; Kate Burkhart, Executive Director, Statewide
Suicide Prevention Council; Margaret Dowling, Staff to
Senator Cathy Giessel; David Scott, Staff, Senator Donny
Olson; Senator Pete Kelly, Sponsor; Heather Shattuck,
Staff, Senator Pete Kelly; William Streur, Commissioner,
Department of Health and Social Services; Angela Rodell,
Deputy Commissioner, Treasury Division, Department of
Revenue; Valerie Davidson, Senior Director, Legal and
Intergovernmental Affairs, Alaska Native Tribal Health
Consortium (ANTHC); Don Habegar, Director, Division of
Corporations, Business and Professional Licensing,
Department of Commerce, Community and Economic Development;
Dave Scott, Staff, Senator Olson; Doug Letch, Staff,
Senator Gary Stevens; Senator Cathy Giessel; Ed Fogels,
Deputy Commissioner, Department of Natural Resources.
PRESENT VIA TELECONFERENCE
Colin Maynard, Member, AELS Board, Anchorage
SUMMARY
SB 2 INTERSTATE MINING COMPACT & COMMISSION
SB 2 was REPORTED out of committee with a "do
pass" recommendation and with one new fiscal note
from Department of Natural Resources and one
previously published zero fiscal note: FN 2(ADM).
SB 16 BD OF ARCHITECTS, ENGINEERS, SURVEYORS
SB 16 was REPORTED out of committee with a "no
recommendation" and with one previously published
fiscal note: FN2(CED).
CSSB 18(FIN) am
BUDGET: CAPITAL
CSSB 18(FIN) am was SCHEDULED but not HEARD.
CSSB 21(FIN) am(efd fld)
OIL AND GAS PRODUCTION TAX
CSSB 21(FIN) am(efd fld)was SCHEDULED but not
HEARD.
SB 24 MARINE TRANSPORTATION ADVISORY BOARD
SB 24 was REPORTED out of committee with a "do
pass" recommendation and with one new fiscal note
from Department of Transportation and Public
Facilities.
SB 37 EXTEND SUICIDE PREVENTION COUNCIL
SB 37 was REPORTED out of committee with a "do
pass" recommendation and with one new fiscal note
from Department of Health and Social Services.
CSSB 38(FIN)
STATE MEDICAL BOARD
CSSB 38(FIN) was REPORTED out of committee with a
"no recommendation" and with one previously
published fiscal impact note: FN1(CED).
SB 88 ALASKA NATIVE MEDICAL CENTER HOUSING
SB 88 was HEARD and HELD in committee for further
consideration.
1:39:42 PM
SENATE BILL NO. 37
"An Act extending the termination date of the
Statewide Suicide Prevention Council; and providing
for an effective date."
1:40:06 PM
LAURA PIERRE, STAFF, SENATOR ANNA FAIRCLOUGH, discussed the
bill. She stated the recommendation of Legislative Budget
and Audit (LB&A) to extend the council 6 years to June 30,
2019. The council was comprised of 17 members. Senator
Fairclough served on the council as a Representative and a
Senator. The council made great strides in increasing
meeting attendance and implementing a statewide strategic
plan for suicide prevention outreach across Alaska. The
council's plan was called "Casting the Net Upstream." The
plan promoted the prevention of suicide in Alaska.
Co-Chair Stoltze handed the gavel to Representative
Costello.
Representative Costello appreciated the sponsor's interest
in the issue.
1:41:39 PM
Representative Munoz asked how the $415 thousand in school-
based grants were distributed. She asked to know more about
the projects funded by the grants. Ms. Pierre deferred the
question to Kate Burkhart.
Representative Kawasaki asked about the LB&A audit
suggesting the board's extension. He asked about other
recommendations made in the audit. Ms. Pierre responded
that other audit findings could be discussed by Ms.
Burkhart.
Senator Anna Fairclough joined the meeting.
1:43:27 PM
KATE BURKHART, EXECUTIVE DIRECTOR, STATEWIDE SUICIDE
PREVENTION COUNCIL, replied to Representative Kawasaki's
question first. She stated that the audit made three
recommendations. The first was that the council would
perform an annual review of its executive director in
partnership with the Mental Health Board and the Advisory
Board on Alcoholism and Drug Abuse. She added that LB&A
established a process by which the annual review would
occur. The council worked with its partners to memorialize
the framework of the council leadership.
Ms. Burkhart stated the second recommendation to track and
report council attendance to the governor's office. An
attendance log was created for transmission to the
governor's office, the Speaker of the House and President
of the Senate. The council did not have difficulty reaching
a quorum due to recommendations made in the prior audit.
Ms. Burkhart continued with the third recommendation for
the council to develop and monitor performance measures
that supported statutory duties and annually report
progress. She noted that the council had performance
measures for many years, which had not been transmitted to
the missions and measures language utilized by LB&A or
included in the Department of Health and Social Services
(DHSS) online performance measures. The council was working
with DHSS to translate measures from the state plan into
language discernible by LB&A.
Ms. Burkhart answered Representative Munoz's question. She
shared that the funding available for school-based suicide
prevention came through the council to the Department of
Education and Early Development (DEED). The increment
flowed through the council to allow the partnership between
the council and the department. She added that the first
year's funding would be provided to Alaska's alternative
schools who were participating in a wellness initiative
funded with a grant from the Division of Behavioral Health.
She pointed out that children from alternative schools were
most likely to report depression, suicide attempts and drug
and alcohol use. She noted that 20 percent of school
districts applied for the funding. The proposals were
reviewed and many would be funded. She expressed confidence
that the programs would enhance services in the school
districts.
1:47:43 PM
Representative Munoz asked if groups that were not
affiliated with the school could apply for funding. Ms.
Burkhart replied that the school-based funding stream was
designed to provide funding for suicide prevention. She
mentioned additional options for other entities interested
in suicide prevention funding. An FY 13 capital
appropriation secured funding for small grants up to $5
thousand for community organizations. The Alaska Community
Foundation matched the FY 13 funding.
Ms. Burkhart pointed out the Comprehensive Prevention Grant
Program, which included opportunities for community
coalitions and organizations to apply for prevention
funding.
1:50:23 PM
Representative Gara thanked Ms. Burkhart for her work. He
stated that much of the work was low-cost and outreach
related. He pointed to work to enhance suicide prevention
programs. He asked if he should pay special attention to a
particular increment in the operating budget conference
committee. Ms. Burkhart replied that there was not a
specific FY 14 suicide-prevention increment.
Senator Fairclough appreciated time that the House Finance
Committee had taken on the issue. She spoke to high suicide
rates in Alaska. She stated that the council made
considerable progress during her membership. She credited
Ms. Burkhart with an excellent job.
Representative Costello CLOSED public testimony.
Representative Wilson discussed the replacement fiscal
impact note from DHSS.
Representative Wilson MOVED to REPORT SB 37 out of
committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
SB 37 was REPORTED out of committee with a "do pass"
recommendation and with one new fiscal note from Department
of Health and Social Services.
1:54:08 PM
AT EASE
1:56:20 PM
RECONVENED
SENATE BILL NO. 16
"An Act relating to the Board of Registration for
Architects, Engineers, and Land Surveyors and to the
Department of Commerce, Community, and Economic
Development."
1:56:44 PM
MARGARET DOWLING, STAFF TO SENATOR CATHY GIESSEL, presented
the bill. She stated that SB 16 revised current law, which
allowed the state board of registration for architects,
engineers and land surveyors to hire a full-time
investigator. The bill had a provision changing a section
allowing electronic licensing examinations. The board
shared a part time investigator with 6 other boards serving
a total of 18 thousand licensees. Every board had its own
investigation needs and the investigator must have
expertise in each subject and familiarity with the detailed
regulations pertinent to each board.
Ms. Dowling continued that the primary mission of the board
was to regulate the profession to assure that a specified
level of competence through testing, certification and
education. The process protected the safety and welfare of
Alaska's public. The professional's reputations were also
protected by the regulatory process. If competency
standards were breeched or a question arose about a person
practicing without a license, the public and other
professionals were at risk.
Ms. Dowling continued to explain that once a complaint was
filed, an investigation into the validity of the complaint
was initiated. When investigators were few, the public was
at risk. The board regulated 15 engineering specialties,
with 9 of the 15 specialties added last year. The number of
licensees and claims continued to increase. She noted that
116 cases were opened in the last 15 months adding to the
already heavy workload of the part-time investigator. The
investigator could not possibly keep up with the demands of
the position.
2:01:19 PM
Ms. Dowling discussed increasing licensing fees to cover
the expenses associated with the board.
Representative Holmes asked if the issue was supported by
the board members. Ms. Dowling replied in the affirmative.
She explained that board members brought the issue to
Senator Giessel's attention. Senator Giessel then agreed to
carry the bill. The potential cost increase per license was
minimal.
Co-Chair Stoltze returned to the room.
COLIN MAYNARD, MEMBER, AELS BOARD, ANCHORAGE (via
teleconference), spoke in favor of the legislation. He
stated that the board had two and one half investigators,
but was now down to one seventh of an investigator. The
investigator had very little opportunity to travel because
of the high workload. He added that the board of the Alaska
Professional Design Council supported the bill.
Representative Wilson discussed the fiscal impact note from
the Department of Commerce, Community and Economic
Development.
Representative Costello CLOSED public testimony.
Representative Wilson MOVED to REPORT SB 16 out of
committee with individual recommendations and the
accompanying fiscal note.
Co-Chair Stoltze OBJECTED. He reviewed the bill and found
no "featherbedding." Co-Chair Stoltze WITHDREW his
objection. There being NO further OBJECTION, it was so
ordered.
SB 16 was REPORTED out of committee with a "no"
recommendation and with one previously published fiscal
note: FN2(CED).
2:06:01 PM
AT EASE
2:08:23 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."
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
SENATE BILL NO. 88
"An Act authorizing the state bond committee to issue
certificates of participation to finance the
construction and equipping of residential housing to
serve the Anchorage campus of the Alaska Native
Medical Center; and authorizing the Department of
Administration to enter into a lease-purchase
agreement for the benefit of the Alaska Native Tribal
Health Consortium."
2:22:22 PM
SENATOR PETE KELLY, SPONSOR, addressed the bill. He spoke
to increased costs in Medicaid. He pointed to the Medicaid
task force who made some recommendations and initiated the
conversation about containing Medicaid costs. One
recommendation was to move people who were utilizing
Medicaid services while eligible for Tribal Health into
hospitals eligible for Tribal Health grants that reimbursed
at 100 percent. With Medicaid, the state paid 50 percent
and Medicaid paid 50 percent. The bill incentivized care
for hospitals that pay 100 percent. The department
estimated an $8.8 million saving per year with
implementation of the legislation.
Co-Chair Stoltze asked about a direct appropriation or a
bond. Senator Kelly replied that the net savings would be
$8.8 million per year. He furthered that the bill would
bond for the Alaska Native Medical Center (ANMC) in
Anchorage for housing of patients that would then receive
100 percent grant funding from Medicaid. He anticipated
even greater savings with time.
2:25:41 PM
Co-Chair Stoltze pointed to construction opportunities for
the capital side of the issue and savings on the operating
side. Senator Kelly affirmed.
HEATHER SHATTUCK, STAFF, SENATOR PETE KELLY, explained that
the state was responsible for multiple pieces when paying
Medicaid. The populations with high-risk pregnancies in
rural areas benefitted greatly. She believed that the
cultural aspect would incentivize Alaska natives who were
Medicaid eligible to utilize the facility. The facility's
lease was 15 years long and required a memorandum of the
state. The legislation would increase access to tribal
facilities, which was in part contingent on expanding
housing abilities.
Co-Chair Stoltze requested department testimony.
2:30:28 PM
WILLIAM STREUR, COMMISSIONER, DEPARTMENT OF HEALTH AND
SOCIAL SERVICES, discussed his involvement in the bill. He
stated that approximately 40 percent of state services were
delivered within the tribal system. The consequence was a
50 percent reimbursement for 60 percent of services. The
discussion evolved cooperatively with Tribal Health who
determined the greatest needs of tribal members. Maternal
and child health was deemed the greatest need.
Commissioner Streur pointed out that the state spent
approximately $1 million per year for each of the first
three years for a challenged birth. He mentioned an
immunodeficient baby whose prescriptions alone cost $36
thousand per month. One proposal was to bring rural mothers
into urban areas for prenatal services. He projected $1.9
million for increased deliveries per year within the native
system. He added that operating room expansion was
projected to cost $595 thousand.
Commissioner Streur commented on the abundance of ear, nose
and throat problems occurring in rural areas, which if left
untreated could lead to permanent damage to children and
their ability to be fully productive citizens. The proposal
was for increased medical capabilities for those issues. He
added that prenatal outpatient capacity would save $1
million per year and the increased day capacity would save
$600 thousand per year. The total estimate was for $3.8
million in Medicaid savings per year as an offset to the
Tribal Health facility.
2:34:26 PM
Commissioner Streur discussed telemedicine capabilities. He
noted that the telemedicine program at Alaska Native Tribal
Health Consortium (ANTHC) provided a national model. He
believed that the performance measures would be included in
the memorandum of agreement.
2:35:45 PM
Vice-Chair Neuman asked if the facility would be located in
Anchorage. Commissioner Streur replied yes, the facility
would be located on the ANTHC campus and connected by sky
bridge to the Native Medical Center.
Vice-Chair Neuman noted that 60 percent of Alaska natives
did not attend visits with a primary care provider, but
instead chose emergency services. He asked how the Alaska
natives could be convinced to choose the facility over
emergency hospital care. He wondered how the percentage
could be lowered.
2:37:32 PM
Commissioner Streur responded that most native citizens
would arrive at the facility from Anchorage. He noted that
people coming into Anchorage may or may not end up at a
tribal facility. The intent of the legislation was early
outreach and additional services. The prenatal services
would bring young mothers into the facility for care
earlier in their pregnancies. The prenatal service would
encourage deliveries within the Tribal Health system.
2:39:25 PM
Vice-Chair Neuman asked about an opportunity for veteran
services. Commissioner Streur responded that an effort to
increase veteran care was active in Bethel, Nome and
Barrow. He mentioned outreach in other rural areas. The
outreach led to over 100 veterans in the Cordova area. Co-
Chair Stoltze clarified the city of Cordova.
Vice-Chair Neuman hoped to get additional help for veterans
in his area.
2:41:11 PM
Vice-Chair Neuman asked if there was a Neonatal Intensive
Care Unit (NICU) in the facility.
Commissioner Streur replied that the facility did have a
NICU with eight beds as part of the Alaska pediatric
partnership. When the eight beds were full, transfers to
Providence were made. Co-Chair Stoltze assumed that the
prenatal care minimized the need for the NICU. Commissioner
Streur agreed.
Representative Kawasaki pointed to a centrally located
hospital in Fairbanks. He understood that the Fairbanks
Native Association had a facility to house people receiving
care at the new facility. He wondered if the same bonding
mechanism could be used for other facilities across the
state.
2:43:23 PM
Commissioner Streur replied that the efforts to expand
Medicaid type services had been proposed in a variety of
mechanisms since 2006. He advocated for continued
development of the services.
Co-Chair Stoltze mentioned the Mat-Su Valley Tribal Health
facility. He wondered if benefits from that new facility
were observed. Commissioner Streur responded that the
facility was not yet open. He believed that the dental
clinic was the only open portion.
Co-Chair Stoltze believed that the Mat-Su valley had 10 or
11 percent Alaska native population.
2:46:07 PM
ANGELA RODELL, DEPUTY COMMISSIONER, TREASURY DIVISION,
DEPARTMENT OF REVENUE, addressed SB 88, which authorized
the issuance of certificates of participation in the amount
of $35 million. The funding would be used to finance the
construction of a 179 bed facility at the Alaska Native
Medical Center to serve patients and families. The
certificates of participation would be used to finance five
of the six floors in the facility with ANTHC financing the
sixth floor. The costs were capped at $35 million with any
cost overruns born by ANTHC. The ultimate project goal was
to realize annual general fund savings. The total cost to
the state was estimated at $42 million, which included
principal and interest to repay the certificates over a
period of 15 years. The payments were subject to annual
appropriation. The annually required debt service cost
approximately $3 million per year. An assumption was built
in for increased rates. She noted that Department of
Administration (DOA) would enter into a lease agreement
with ANTHC who would be responsible for the design and
building of the facility. Construction invoices would be
submitted to the department with the assistance of
Department of Health and Social Services (DHSS). The state
would maintain the tax exemption on the certificates of
participation.
Representative Wilson asked if the money would be
reimbursed to the state. Ms. Rodell replied that the state
would fund the facility. Medicaid savings would provide the
funding. The facility was a crucial aspect of the savings.
Representative Holmes pointed to page 2, lines 24 through
27. She stated that the bill did not mention participation
by ANTHC. Ms. Rodell clarified that the bill was related to
the $35 million only. The entire project cost exceeded that
amount. The partnership agreement was that ANTHC would
contribute to the construction of the total project.
Representative Holmes noted that subsection (a) referred to
the project as a residential housing facility with all
remaining funding connected to the investment income earned
on the proceeds. She believed the language did not
adequately detail the private partner's participation.
2:52:22 PM
Ms. Rodell answered that she was unsure about acknowledging
the private partner's participation in the legislation
because ANTHC would be contributing equity. Representative
Holmes was supportive of the project and would speak
further with Ms. Rodell about the issue.
Co-Chair Austerman asked if the Department of Revenue (DOR)
would sell the bond. Ms. Rodell replied in the affirmative.
Co-Chair Austerman asked about the federal government's
participation in the project. Ms. Rodell answered that once
the state went forward with the project, the department
would come to the legislature for an annual debt service
request regardless of federal government participation
regarding Medicaid.
Co-Chair Austerman asked for verification that the project
was dependent on the federal government. Ms. Rodell replied
in the affirmative.
Representative Munoz asked if the state would derive
benefit once the facility had been paid off and was
constructed. Ms. Rodell replied that the state would
continue to derive benefit due to the savings.
Representative Munoz clarified that the state shared the
cost of Medicaid with the federal government. She wondered
if the state would derive the financial benefit for the
savings allowed by the presence of the facility. She asked
if the state's contribution to Medicaid would lessen. Ms.
Rodell deferred the question to Commissioner Streur.
Co-Chair Stoltze noted that the legislation would allow for
medical services for additional Alaskans and provide a
permanent accrual of benefit.
2:57:16 PM
Co-Chair Austerman pointed to the fiscal note listing $2.8
million per year paid by the state. Ms. Rodell concurred.
Representative Wilson asked what would happen if the state
did not fund the $3 million annual payment. Ms. Rodell
replied that the state would be in default.
Representative Wilson asked if the state was competing with
the private sector. Ms. Rodell deferred the question.
2:58:41 PM
VALERIE DAVIDSON, SENIOR DIRECTOR, LEGAL AND
INTERGOVERNMENTAL AFFAIRS, ALASKA NATIVE TRIBAL HEALTH
CONSORTIUM (ANTHC), spoke in support of the legislation.
She stated that expanding patient housing would allow an
expansion of services at ANTHC. She provided examples of
patients that would benefit from the facility. The first
story pertained to a pregnant woman from a small village
who experienced complications and needed to be in a
hospital but was unfamiliar with the use of Medicaid
vouchers. She mentioned her own personal experience. She
elaborated on the story. She stated that patients had to
learn navigation of a whole new world in Anchorage when
they were from a village. She provided information on the
proposed facility. She explained how a patient would be
treated in the new facility. She discussed the services
provided at the facility including the cafeteria, shared
kitchen and housing.
3:04:33 PM
Ms. Davidson continued to discuss how the facility would
help various patients of all ages. She furthered that ANTHC
was the highest level trauma center in the state. The
project allowed the state to realize an annual savings of
$8.8 million. The state's required contribution would be
$2.8 to $2.9 million annually. She spoke to the necessary
housing component. She thanked the committee for its time.
Representative Holmes asked if the facility would enhance
the ability for telemedicine services. Ms. Davidson
answered that ANTHC had a program for telemedicine service
which allowed savings in ear, nose and throat services. Her
organization had documented the travel savings because of
the telemedicine services. She stated that the organization
explored expansion of telecardiology services.
Representative Holmes discussed support for the benefits of
telemedicine services.
Co-Chair Stoltze asked ANTHC was under the management of
the Southcentral umbrella. Ms. Davidson replied that the
Southcentral foundation and ANTHC joint-managed the Alaska
Native Medical center.
Co-Chair Stoltze remarked about the partnership. Ms.
Davidson commented on the many benefits of the partnership.
Co-Chair Stoltze asked about the facility in Wasilla known
as Benteh Nuutah. He wondered about its progress.
Ms. Davidson replied that once a facility was able to bill
services that were available by a tribal health facility,
the state immediately saw savings.
3:10:57 PM
Co-Chair Stoltze hoped that there was a decreasing number
of Alaskans that would require Medicaid because of a
thriving economy.
Representative Edgmon asked about the safety aspect of
bringing patients in from villages. Ms. Davidson replied
that the consortium had heard stories about people being
taken advantage of in cab rides to the ANMC. She provided
other stories about patients who did not speak English
well. The housing facility goal was to provide a home away
from home. She shared a personal story related to her
childhood. She furthered that Alaska Native families wanted
what all families wanted. She stated that when there were
opportunities to help the lives of many people it was
important to seize them.
Co-Chair Stoltze inferred that the bill financed a facility
with great opportunities for savings, which included
facilitated transportation for rural patients. Ms. Davidson
replied in the affirmative. The transportation from the
housing to the airport would be provided.
3:16:40 PM
Representative Wilson asked if Medicaid eligibility was a
patient requirement. Ms. Davidson replied that the housing
facility would be available to all eligible individuals.
Co-Chair Stoltze expounded that Medicaid patients utilizing
the facility would benefit state savings. Ms. Davidson
concurred.
Co-Chair Stoltze CLOSED public testimony.
SB 88 was HEARD and HELD in committee for further
consideration.
3:19:14 PM
RECESSED
7:36:27 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).
SENATE BILL NO. 24
"An Act relating to the Alaska Marine Transportation
Advisory Board."
7:51:03 PM
DOUG LETCH, STAFF, SENATOR GARY STEVENS, stated that the
bill was smaller and proposed changing the Marine
Transportation Advisory Board and adding a twelfth seat
from Southcentral Alaska. The legislation would allow the
twelfth seat enabling membership to participate from
communities served on Kodiak Island, the Kachemak Bay,
Seldovia and Homer. He noted an additional section
reflecting Gustavus' consideration for community membership
in the Southeast section. He mentioned a change in the
House Transportation Committee at the request of
Representative Wilson on page 2 line 10 remove the word
"retired" and add "20 years of experience." The change
would increase the applicant pool for that particular seat.
He spoke about the Marine Transportation Advisory Board
(MTAP). He pointed out written testimony in committee
members' packets from Homer and Seldovia Chamber of
Commerce.
7:54:57 PM
Representative Holmes asked if the board had a history of
deadlock votes. Mr. Letch replied that there had never been
a tie vote and the board did not have bylaws. The board was
amicable and wanted to bring better ferry laws to the
state.
Co-Chair Stoltze CLOSED public testimony.
Representative Costello discussed the fiscal note showing a
fiscal impact of $3 thousand for FY 14 through FY 19.
Representative Wilson asked how often the board met. Mr.
Letch replied that the board was required to attend one
meeting per year, so the money would cover the cost of the
short meeting.
7:58:01 PM
Representative Edgmon announced that Mr. Letch was
retiring. Mr. Letch replied that he would move to Orlando
Florida after the legislative session.
Co-Chair Stoltze commented that Mr. Letch was a thoughtful
and wonderful employee. He was an asset to the building.
Representative Costello MOVED to REPORT SB 24 out of
committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
SB 24 was REPORTED out of committee with a "do pass"
recommendation and with one new fiscal note from Department
of Transportation and Public Facilities.
8:00:28 PM
AT EASE
8:01:15 PM
RECONVENED
SENATE BILL NO. 2
"An Act enacting the Interstate Mining Compact and
relating to the compact; relating to the Interstate
Mining Commission; and providing for an effective
date."
8:01:15 PM
SENATOR CATHY GIESSEL introduced her bill which would
elevate Alaska from an associate member to full membership
in the Interstate Mining Compact and Commission (IMCC). The
change would allow Alaska's governor be an active voting
member giving Alaska a voice on the national level. The
compact was established in April 1971 and consisted of 20
member states and five associate member states. The powers
of the commission were found on page four of the bill. The
estimated cost included $40 thousand in dues, which was
partially based on resource production. She mentioned a
chart in the bill materials that illustrated the dues
calculation.
8:05:01 PM
ED FOGELS, DEPUTY COMMISSIONER, DEPARTMENT OF NATURAL
RESOURCES, testified on the bill. He stated that Alaska now
had seven operating mines that did well environmentally. He
noted that the permitting and regulatory processes were
improving. The bill's initiative was to strengthen the
collaborative relationship with the federal agencies
because permitting relied heavily on federal rules and
regulations. He stated that IMCC brought together the
environmental and mining programs from 26 states in the
nation. In this forum, the states exchanged information
about potential areas of improvement.
Mr. Fogels explained that IMCC was instrumental in helping
Alaska with the number of initiatives where the federal
government was "over-reaching." He provided an example. He
was the governor's designee for IMCC and he had seen the
benefits of the collaboration first hand.
8:07:46 PM
Representative Holmes asked about page 4 and the powers of
the commission. She noted that the commission might make
recommendations, which could be broadly read. Mr. Fogels
replied that frequent IMCC actions included resolutions
directed at federal agencies.
Representative Costello appreciated the bill and she was
disappointed that the previous version of the bill did not
elevate Alaska to full membership. She asked if there were
tangible benefits to full members.
8:09:08 PM
Mr. Fogels replied that the most significant benefit was
the ability for Alaska to take a leadership role and better
guide the policy chosen by the commission. Initially the
commission was an east-coast coal-centric organization.
8:10:10 PM
Representative Costello asked about the committee structure
of the meetings. She asked about his participation in the
meetings. Mr. Fogels replied that the commission hosted
multiple committees and he had participated in meetings,
but was not allowed to vote as an associate member.
Vice-Chair Neuman asked if IMCC had addressed Alaska's
mining permits. He asked how the commission was able to
help miners. Mr. Fogels replied that IMCC recently entered
into a memorandum of understanding with the Mine Safety
Health Administration. He commented that smaller rural
mines were unable to abide by the strict federal guidelines
set forth by the Mine Safety Health Administration. He was
able to bring the concerns of the smaller Alaskan miners to
the attention of IMCC.
8:12:41 PM
Vice-Chair Neuman reviewed the travel costs on page 1
showing $20 thousand for two trips. Mr. Fogels replied that
he traveled frugally. He explained that there were two IMCC
meetings per year and the department sent two people to the
meetings. Additional meetings were organized depending on
the issues. He stated that mining symposiums for regulators
were also hosted in western states. He hoped to incorporate
staff from Department of Environmental Conservation (DEC)
and Department of Fish and Game (DF&G).
8:14:55 PM
Representative Munoz asked about the 404 permitting
legislation and how the IMCC could help. Mr. Fogels replied
that the quest for Alaska state primacy was part of a
broader effort to acquire more control over wetlands
permitting in Alaska. Each piece of the issue involved
negotiation with the federal government. He noticed that
every mining state in the nation who participated in the
meetings signaled a higher level of anxiety with federal
overreach.
8:17:12 PM
Senator Giessel added that the IMCC participated with other
western states on issues related to mining royalties.
Alaska did not participate in much mineral resource royalty
sharing.
8:18:12 PM
Mr. Fogels added that the federal government held back on
royalties. The IMCC effort would also aid the broader
resource development spectrum in Alaska.
8:18:48 PM
Co-Chair Stoltze CLOSED public testimony.
Representative Costello discussed the fiscal notes. She
began with fiscal note 1, which showed a fiscal impact of
$60 thousand for FY 14 through FY 19, while fiscal note 2
was a zero note.
Representative Wilson asked about the second page of fiscal
note 1. She stated that the fiscal note stated that Alaska
would be the 20th state to join the compact as a full
member. She understood that Alaska would be the second
state to join as a full member. Mr. Fogels replied that
Utah was the only western state that had joined as a full
member.
8:21:40 PM
Co-Chair Stoltze had an issue with travel for DNR. He asked
Representative Costello if she was comfortable with the
fiscal note.
Representative Costello wondered about reducing the travel
component by half. Mr. Fogels replied that the meeting
opportunities would be fewer. He stated that the symposiums
would not be attended.
Representative Costello repeated the question to Senator
Giessel. Senator Giessel stated that the attendance would
be reduced for Alaska as a result. She hoped that the
department would find other means. She preferred face-to-
face attendance to teleconference.
Co-Chair Stoltze stated that associated travel was
introduced.
8:24:18 PM
Co-Chair Stoltze MOVED that the travel portion of fiscal
note 1 was reduced to $15 thousand. Representative Costello
OBJECTED for discussion.
Representative Costello understood that travel costs were
great, but she had faith that the department would seek
efficiencies. Representative Costello WITHDREW her
OBJECTION.
Co-Chair Stoltze AMENDED the fiscal note to show a $5
thousand reduction.
Co-Chair Stoltze asked if the dues were structured on
production or state revenues.
8:25:53 PM
Mr. Fogels replied that the IMCC structured the dues
calculation by developing a two-year budget, which was then
projected out and divided in half. Half of the final number
was prorated and divided evenly among member states. The
other half was made up as a percentage of production.
Co-Chair Stoltze understood that there was a cap to the
dues.
8:27:12 PM
Senator Giessel commented that when new stated join the
compact as full members, the price of dues decreases.
Representative Costello MOVED to REPORT SB 2 as amended out
of committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
SB 2 was REPORTED out of committee with a "do pass"
recommendation and with one new amended fiscal note from
Department of Natural Resources and one previously
published zero fiscal note: FN 2(ADM).
8:29:25 PM
Representative Gara asked about Department of Revenue and
the offer to answer questions regarding the modeling of HCS
CSSB 21(RES). Co-Chair Stoltze concurred.
8:31:03 PM
ADJOURNMENT
The meeting was adjourned at 8:31 p.m.
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