03/10/2023 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB85 | |
| HB87 | |
| HB35 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 87 | TELECONFERENCED | |
| *+ | HB 35 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 85 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 10, 2023
3:15 p.m.
MEMBERS PRESENT
Representative Jesse Sumner, Chair
Representative Justin Ruffridge, Vice Chair
Representative Mike Prax
Representative Dan Saddler
Representative Stanley Wright
Representative Ashley Carrick
MEMBERS ABSENT
Representative Zack Fields
COMMITTEE CALENDAR
HOUSE BILL NO. 85
"An Act relating to professional licensing; relating to
temporary licenses for some professions; and providing for an
effective date."
- HEARD & HELD
HOUSE BILL NO. 87
"An Act relating to record checks for certain employees of the
Department of Revenue; relating to permanent fund dividends; and
providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 35
"An Act relating to the certificate of need program for health
care facilities; and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 85
SHORT TITLE: PROFESSIONAL LICENSING; TEMP PERMITS
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/27/23 (H) READ THE FIRST TIME - REFERRALS
02/27/23 (H) L&C, FIN
03/08/23 (H) L&C AT 3:15 PM BARNES 124
03/08/23 (H) Heard & Held
03/08/23 (H) MINUTE(L&C)
03/10/23 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 87
SHORT TITLE: PERM FUND; EMPLOYMENT; ELIGIBILITY
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/27/23 (H) READ THE FIRST TIME - REFERRALS
02/27/23 (H) L&C, FIN
03/10/23 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 35
SHORT TITLE: REPEAL CERTIFICATE OF NEED PROGRAM
SPONSOR(s): RAUSCHER
01/19/23 (H) PREFILE RELEASED 1/13/23
01/19/23 (H) READ THE FIRST TIME - REFERRALS
01/19/23 (H) HSS, L&C, FIN
02/10/23 (H) HSS REFERRAL MOVED TO AFTER L&C
02/10/23 (H) BILL REPRINTED
02/18/23 (H) HSS AT 3:00 PM DAVIS 106
02/18/23 (H) -- MEETING CANCELED --
03/10/23 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
SYLVAN ROBB, Director
Division of Corporations, Business, and Professional Licensing
Department of Commerce, Community, and Economic Development
Juneau, Alaska
POSITION STATEMENT: On behalf of the sponsor, House Rules by
request of the governor, gave the sectional analysis for HB 85.
FADIL LIMANI, Deputy Commissioner
Department of Revenue
Juneau, Alaska
POSITION STATEMENT: On behalf of the sponsor, House Rules by
request of the governor, introduced HB 87.
GENEVIEVE WOJTUSIK, Director
Permanent Fund Dividend Division
Department of Revenue
Juneau, Alaska
POSITION STATEMENT: On behalf of the bill sponsor, House Rules
by request of the governor, gave the sectional analysis for HB
87.
REPRESENTATIVE GEORGE RAUSCHER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, presented HB 35.
CRAIG VALDEZ, Staff
Representative George Rauscher
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Rauscher, prime
sponsor, gave the sectional analysis for HB 35.
JAIMIE CAVANAUGH, Attorney
Institute for Justice
Arlington, Virginia
POSITION STATEMENT: Provided invited testimony during the
hearing on HB 35.
ACTION NARRATIVE
3:15:27 PM
CHAIR JESSE SUMNER called the House Labor and Commerce Standing
Committee meeting to order at 3:15 p.m. Representatives
Saddler, Carrick, Wright, and Sumner were present at the call to
order. Representatives Prax and Ruffridge arrived as the
meeting was in progress.
HB 85-PROFESSIONAL LICENSING; TEMP PERMITS
3:15:50 PM
CHAIR SUMNER announced that the first order of business would be
HOUSE BILL NO. 85, "An Act relating to professional licensing;
relating to temporary licenses for some professions; and
providing for an effective date."
3:16:10 PM
SYLVAN ROBB, Director, Division of Corporations, Business, and
Professional Licensing, Department of Commerce, Community, and
Economic Development (DCCED), on behalf of the sponsor, House
Rules by request of the governor, gave the sectional analysis
for HB 85. She stated that Section 1 would repeal AS 08.01.062
and allow an applicant for an occupational license to receive a
temporary license if certain requirements are met. The
temporary license would be good for 180 days with the
possibility of a 180-day extension, at DCCED's discretion. She
stated that Sections 3 through 27 are changes in language to
conform with the new legislation.
3:19:15 PM
MS. ROBB continued to Section 28 and stated that it would allow
DCCED to adopt any regulations necessary to implement changes
made by the proposed bill. Section 29 would provide for current
processes, such as investigations, licenses, and contracts to
continue, as are, before the proposed bill would pass. She said
that Section 30 would provide an immediate effective date for
Sections 28 and 29, and Section 31 would provide an effective
date of July 1, 2024, for Sections 1 through 27.
3:20:54 PM
CHAIR SUMNER questioned whether the problem could change from a
backlog in licensure to a backlog in temporary licensure.
MS. ROBB answered that the volume of applications would be
reduced because it would no longer be necessary for applicants
to complete two separate applications, one for a temporary
license and one for a permanent license. In response to a
follow-up question, she said that certain license applications
take longer to process, with nursing licenses currently having
the greatest backlog.
3:23:01 PM
REPRESENTATIVE SADDLER asked whether duplicate applications
could be screened out.
MS. ROBB answered that part of the reason for the backlog is
staff vacancies [and the resulting lack of] technical knowledge
needed to process certain applications. In response to a
follow-up question, she stated that universal temporary
licensure (UTL) would be "another tool" to help people get to
work faster.
REPRESENTATIVE SADDLER asked how the legislature can be sure
that applications for temporary licenses would receive the same
amount of scrutiny as permanent licenses.
MS. ROBB answered that obtaining a temporary license requires an
individual to possess a license from out of state with
substantially similar requirements to those in Alaska, with no
disciplinary action against them.
3:26:57 PM
REPRESENTATIVE CARRICK asked why certain professions would be
required to work under another licensee before obtaining a
license.
MS. ROBB answered that the requirements are made by the
respective boards of these professions.
3:29:22 PM
REPRESENTATIVE RUFFRIDGE asked how the temporary license portion
would be expedited.
MS. ROBB answered that many applicants apply for a temporary
license and make the permanent application at a later time;
therefore, the occupational license examiner would have to look
at each applicant twice. With the proposed legislation, the
applicant could indicate whether a permanent license would be
sought in the future, preventing the examiner from reviewing an
applicant twice. In response to a follow-up question, she
stated that applications would still be reviewed in the order
they are received.
3:32:47 PM
REPRESENTATIVE SADDLER asked whether the proposed bill has the
support of the different licensing boards.
MS. ROBB answered that DCCED has not received questions or
concerns from any of the 21 existing professional boards. In
response to a follow-up question, she stated that DCCED
generally supports the idea of licensure compacts, but HB 85
would not be considered a "stepping stone" to licensure
compacts.
3:34:35 PM
MS. ROBB, in response to a question from Representative Carrick,
answered that there are 18 states with some form of UTL
licensure, and she listed several of these states.
CHAIR SUMNER announced that HB 85 was held over.
HB 87-PERM FUND; EMPLOYMENT; ELIGIBILITY
3:35:58 PM
CHAIR SUMNER announced that the next order of business would be
HOUSE BILL NO. 87, "An Act relating to record checks for certain
employees of the Department of Revenue; relating to permanent
fund dividends; and providing for an effective date."
3:36:26 PM
FADIL LIMANI, Deputy Commissioner, Department of Revenue (DNR),
introduced HB 87, on behalf of the sponsor, House Rules by
request of the governor. He stated that the proposed bill would
do the following: allow DNR to collect any necessary personal
information for hiring new employees; include merchant mariners
in the section of allowable absences for qualifying for the
permanent fund dividend (PFD); modify the definition of
education for the purpose of allowable absences regarding the
PFD; and allow for electronic notices to be given regarding the
PFD.
3:39:19 PM
GENEVIEVE WOJTUSIK, Director, Permanent Fund Dividend Division,
Department of Revenue, gave the sectional analysis for HB 87,
[included in the committee packet]. She stated that Sections 1,
2, and 5 would add provisions for a background check as a
condition of employment for the Permanent Fund Dividend
Division. Section 3 would allow for merchant mariners in
training to be included under allowable absences, and Section 4
would clarify the definition of "student" for the same purpose.
She said that Section 6 would allow a notice of levy to be sent
electronically rather than through the mail. She explained that
sections 7 through 9 are transitional language changes and a
provision for an effective date.
CHAIR SUMNER announced that HB 87 was held over.
HB 35-REPEAL CERTIFICATE OF NEED PROGRAM
3:42:18 PM
CHAIR SUMNER announced that the final order of business would be
HOUSE BILL NO. 35, "An Act relating to the certificate of need
program for health care facilities; and providing for an
effective date."
3:42:37 PM
The committee took an at-ease from 3:42 p.m. to 3:46 p.m.
3:46:32 PM
REPRESENTATIVE GEORGE RAUSCHER, Alaska State Legislature, as
prime sponsor, introduced HB 35. He stated that HB 35 would
repeal the certificate of need program and provide an effective
date of July 1, 2024. He explained that the certificate of need
program was first mandated by the federal government in 1974,
and later repealed federally in 1987. He said that since 1987,
13 states have already repealed certificate of need programs.
He stated that this program was intended to lower healthcare
costs; however, healthcare costs have changed from a fee per
service system to a prospective payment system, and this has
caused healthcare costs to increase because of a lack of
competition.
3:48:49 PM
CRAIG VALDEZ, Staff, Representative George Rauscher, Alaska
State Legislature, gave the sectional analysis for HB 35, on
behalf of Representative Rauscher, prime sponsor. He stated
that Sections 1 through 7 would make modifications to
definitions of healthcare terms under current state statutes.
Sections 8 and 9 would repeal the certificate of need program,
and Section 10 would prevent the Department of Family and
Community Services from acting on or after the effective date to
modify or revoke any certificate of need. He said that Section
11 would provide for an effective date of July 1, 2024. He
added that the proposed bill currently has a zero fiscal note.
3:51:47 PM
REPRESENTATIVE PRAX asked whether repealing the certificate of
need program would cost significant amounts of money regarding
Medicare.
REPRESENTATIVE RAUSCHER answered that he has not consulted the
Department of Health, but he expressed the belief that it would.
He added that the certificate of need program only adds to the
costs and complications of remote communities trying to build
new healthcare facilities.
3:54:24 PM
REPRESENTATIVE RUFFRIDGE asked whether it would be more accurate
to say that the fiscal note is "indeterminant."
MR. VALDEZ answered that this would be correct for indirect
costs.
REPRESENTATIVE RUFFRIDGE asked how other issues, such as the
inability to raise revenue via property taxes in certain areas,
would be addressed in regard to funding the construction of
hospitals.
REPRESENTATIVE RAUSCHER expressed agreement that there are
multiple hurdles to building a hospital in rural areas; however,
he expressed the belief that the certificate of need is a
"needless hurdle" which takes money away from the actual funds
to build these facilities.
3:57:22 PM
REPRESENTATIVE CARRICK asked if the $1.5 million figure is the
start-up cost for requiring a certificate of need.
MR. VALDEZ answered that if the cost of the facility were equal
to or greater than $1.5 million, a certificate of need would be
required. In response to a follow-up question, he said that he
is unsure of the exact figure for any additional costs being
incurred in relation to the certificate of need requirement.
REPRESENTATIVE CARRICK asked whether any healthcare facilities
support the repeal of the certificate of need program.
REPRESENTATIVE RAUSCHER answered that he has spoken to a few
healthcare clinics that are supportive of the repeal.
4:01:01 PM
JAIMIE CAVANAUGH, Attorney, Institute for Justice, stated that
the Institute for Justice has been working on legislation and
litigation to end certificate of need laws for decades. She
said that certain aspects of these laws were suspended during
the pandemic, and this had pointed out that they are
ineffective. She stated that Tennessee, Alabama, Oregon, and
Washington have certificate of need laws which do not apply to
rural areas, but these laws are not effective at preventing the
closure of rural healthcare facilities, while Utah and Colorado
are states without certificate of need laws, and these states
have not had a rural hospital closure since 2005. She said that
the Federal Trade Commission and Department of Justice have been
involved in efforts to repeal certificate of need laws. She
argued that this is because of the negative effect on healthcare
competition. She suggested that the concentration of healthcare
facilities in a single area leads to higher costs and lower
quality.
4:06:55 PM
REPRESENTATIVE SADDLER asked if there were any examples of
certificate of need laws affecting Alaska differently than other
states.
MS. CAVANAUGH answered that the data shows states without
certificate of need laws have greater access to healthcare and
an increased number of healthcare facilities. She acknowledged
that repealing the law would not address Alaska's geographical
spread. She added that many individuals seeking to start a new
healthcare facility give up before starting because it is known
that other healthcare facilities have the ability to argue
against the need for a new facility during the certificate of
need process.
4:10:12 PM
CHAIR SUMNER announced that HB 35 was held over.
4:10:18 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:10 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 35 Sectional Analysis.pdf |
HL&C 3/10/2023 3:15:00 PM |
HB 35 |
| HB 35 Fiscal Note Dep of Hlth Medicaid Svcs.pdf |
HL&C 3/10/2023 3:15:00 PM |
HB 35 |
| HB0035A.PDF |
HL&C 3/10/2023 3:15:00 PM |
HB 35 |
| HB 35 Sponsor Statement.pdf |
HL&C 3/10/2023 3:15:00 PM |
HB 35 |
| HB 87 Sectional Analysis 2.24.2023.pdf |
HL&C 3/10/2023 3:15:00 PM |
HB 87 |
| HB 87 DOR Fiscal Note 2.27.2023.PDF |
HL&C 3/10/2023 3:15:00 PM |
HB 87 |
| HB 87 version A.PDF |
HL&C 3/10/2023 3:15:00 PM |
HB 87 |
| HB087 Presentation to H.L&C 03.10.23.pdf |
HL&C 3/10/2023 3:15:00 PM |
HB 87 |
| HB 87 Transmittal Letter 2.23.2023.pdf |
HL&C 3/10/2023 3:15:00 PM |
HB 87 |
| Support for AK SB 83 HB 85_2023_Archbridge Institute.pdf |
HL&C 3/10/2023 3:15:00 PM |
HB 85 SB 83 |
| HB87 Support Letter HLC 4.3.2023.pdf |
HL&C 3/10/2023 3:15:00 PM |
HB 87 |