03/05/2018 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB353 | |
| Adjourn | |
| HB353 | |
| HB277 | |
| HB309 |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 309 | TELECONFERENCED | |
| += | HB 277 | TELECONFERENCED | |
| *+ | HB 353 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 5, 2018
3:19 p.m.
MEMBERS PRESENT
Representative Sam Kito, Chair
Representative Adam Wool, Vice Chair
Representative Andy Josephson
Representative Louise Stutes
Representative Chris Birch
Representative Gary Knopp
Representative Colleen Sullivan-Leonard
MEMBERS ABSENT
Representative Mike Chenault (alternate)
Representative Bryce Edgmon (alternate)
COMMITTEE CALENDAR
HOUSE BILL NO. 353
"An Act relating to the licensure of marital and family
therapists; relating to medical assistance for marital and
family therapists' services; and providing for an effective
date."
- HEARD & HELD
HOUSE BILL NO. 277
"An Act relating to the regulation of broadband Internet; and
making certain actions by broadband Internet service providers
unlawful acts or practices under the Alaska Unfair Trade
Practices and Consumer Protection Act."
- MOVED HB 277 OUT OF COMMITTEE
HOUSE BILL NO. 309
"An Act disapproving all recommendations of the State Officers
Compensation Commission relating to the compensation, benefits,
and allowances of state officers; and providing for an effective
date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 353
SHORT TITLE: MARITAL & FAMILY THERAPY LIC. & SERVICES
SPONSOR(s): REPRESENTATIVE(s) SPOHNHOLZ
02/16/18 (H) READ THE FIRST TIME - REFERRALS
02/16/18 (H) L&C, FIN
03/05/18 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 277
SHORT TITLE: BROADBAND INTERNET: NEUTRALITY/REGULATION
SPONSOR(s): REPRESENTATIVE(s) KAWASAKI
01/12/18 (H) PREFILE RELEASED 1/12/18
01/16/18 (H) READ THE FIRST TIME - REFERRALS
01/16/18 (H) L&C, FIN
02/09/18 (H) L&C AT 3:15 PM BARNES 124
02/09/18 (H) Heard & Held
02/09/18 (H) MINUTE(L&C)
02/14/18 (H) L&C AT 3:15 PM BARNES 124
02/14/18 (H) <Bill Hearing Canceled>
02/28/18 (H) L&C AT 3:15 PM BARNES 124
02/28/18 (H) Scheduled but Not Heard
03/05/18 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 309
SHORT TITLE: REJECT OFFICERS COMP. COMMISSION REPORT
SPONSOR(s): REPRESENTATIVE(s) GUTTENBERG
01/26/18 (H) READ THE FIRST TIME - REFERRALS
01/26/18 (H) L&C, FIN
03/05/18 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
BERNICE NISBETT, Staff
Representative Ivy Spohnholz
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 353 on behalf of
Representative Spohnholz, prime sponsor.
DOROTHEA GODDARD-AGUERO, Public Member
Board of Marital and Family Therapy
Office of the Governor
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 353.
JON ZASADA, Policy Integration Director
Alaska Primary Care Association
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 353.
ALBERT WALL, Chief Executive Officer
Peninsula Community Health Services of Alaska
Soldotna, Alaska
POSITION STATEMENT: Testified in the hearing on HB 353.
JACOB GERRISH, Staff
Representative Scott Kawasaki
Juneau, Alaska
POSITION STATEMENT: Reintroduced HB 277 on behalf of
Representative Kawasaki, prime sponsor.
TOM BRADY, Engineering Manager
Microcom
Anchorage, Alaska
POSITION STATEMENT: Testified in the hearing on HB 277.
GEORGE PIERCE
Kasilof, Alaska
POSITION STATEMENT: Testified in support of HB 277.
JODE SPARKS
Soldotna, Alaska
POSITION STATEMENT: Testified in support of HB 277.
KYRSTYN KELLY
Palmer, Alaska
POSITION STATEMENT: Testified in support of HB 277.
JEANIE PIERCE
Kasilof, Alaska
POSITION STATEMENT: Testified in support of HB 277.
ALLIANA SALANGUIT, Staff
Representative David Guttenberg
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 309 on behalf of
Representative Guttenberg, prime sponsor.
ACTION NARRATIVE
3:19:30 PM
CHAIR SAM KITO called the House Labor and Commerce Standing
Committee meeting to order at 3:19 p.m. Representatives
Sullivan-Leonard, Stutes, Knopp, Birch, Josephson, Wool, and
Kito were present at the call to order.
HB 353-MARITAL & FAMILY THERAPY LIC. & SERVICES
3:20:52 PM
CHAIR KITO announced that the first order of business would be
HOUSE BILL NO. 353, "An Act relating to the licensure of marital
and family therapists; relating to medical assistance for
marital and family therapists' services; and providing for an
effective date."
3:21:29 PM
BERNICE NISBETT, Staff, Representative Ivy Spohnholz, Alaska
State Legislature, presented HB 353 on behalf of Representative
Spohnholz, prime sponsor. She presented the PowerPoint "HB353:
Marital & Family Therapist Licensure & Services" [included in
committee packet].
MS. NISBETT addressed slide 2:
What is marital & family therapy (MFT) and why is this
important?
? MFTs treat serious clinical issues including
depression, marital obstacles, anxiety, individual
psychological problems, and child-parent difficulties.
? MFTS are mental health professionals trained in
psychotherapy and family systems, and are licensed to
diagnose and treat mental and emotional disorders
within the context of marriage, couples, and family
systems.
? Source: American Association for Marriage & Family
Therapy, 2018.
MS. NISBETT spoke to "What does this bill do?" in slides 3-6:
1. It requires 1,500 hours of supervision for marital
and family therapists (MFTs). 100 hours of individual
supervision, and 100 hours of group supervision may be
conducted by one or more supervisors.
3:23:25 PM
MS. NISBETT addressed slide 4:
2. It specifies that a qualified supervisor for
individual
supervision must have 5 years of experience in
marital and family therapy and a license to practice.
Or, that a qualified group supervisor can be licensed
as another professional mental health clinician (LPC,
LMFT, LCSW, Psy.D, M.D., or ANP).
MS. NISBETT addressed slide 5:
3. It defines:
? Direct supervision one or more psychiatrists on-
site a mental health physician clinic 30 percent of
the time the clinic is open.
? Mental health physician clinic operated by one or
more psychiatrists and primarily provides mental
health services.
? Psychiatrist a person licensed to practice as a
physician under AS 08.64 and is licensed by the State
Medical Board as a psychiatrist.
MS. NISBETT addressed slide 6:
4. Lastly, it allows the Department of Health & Social
Services (DHSS) to reimburse a mental health clinic
for services performed by mental health clinicians
who are under the direct supervision of a
psychiatrist.
3:25:18 PM
MS. NISBETT paraphrased from the Sectional Analysis [included in
committee packet] which reads as follows [original punctuation
provided]:
Section 1. AS 08.63.100(a) is amended to clarify that
before an individual can receive a license to practice
marital and family therapy, they must complete 1,500
of supervised clinical hours. Of those 1,500 hours,
100 hours must be individual supervision and 100 hours
must be for group supervision. These 200 hours may be
attended by one or more supervisors.
Section 2. AS 08.63.120(b) is amended to state that a
supervisor who oversees a license for individual
supervision must have practiced marital and family
therapy for five years, be licensed under this
chapter, and meet the minimum standards established by
the board for approved supervisors. A supervisor who
oversees a licensee for group supervision must be
licensed to practice as a professional counselor, a
marital and family therapist, a physician, advanced
nurse practitioner, psychologist, or clinical social
worker.
Section 3. AS 47.07.030(b) is amended to add marital
and family therapists' services to the list of
optional services that the Department of Health &
Social Services (DHSS) may offer.
Section 4. AS 47.07.030(g) defines "direct
supervision," "mental health physician clinic," and
"psychiatrist."
Section 5. AS 47.07.030 is amending by adding a new
section (h) that allows DHSS to reimburse a mental
health physician clinic for services provided by a
psychiatrist or an individual who works under direct
supervisor and is licensed to practice as a
professional counselor, a marital and family
therapist, physician assistant, advanced nurse
practitioner, psychologist, psychological associate,
or clinical social worker.
Section 6. Authorizes DHSS and the Board of Marital
and Family Therapy to adopt regulations necessary to
implement this Act.
Section 7. States that Sec.6 of this Act will take
effect immediately under AS 01.10.070(c).
Section 8. Not including Sec.7 of this Act, the
effective date of this bill will be January 1, 2018.
3:27:52 PM
MS. NISBETT presented slide 16, "Suggestions from Stakeholders":
? Defining "direct supervision" as:
? One or more psychiatrists on-site at a mental health
clinic 30 % of the time, OR
? Available by a communication device to provide
general oversight.
? Allowing advanced nurse practitioners authorized by
the Board of Nursing to practice as a psychiatric
mental health nurse practitioner to provide direct
supervision.
? Changing "mental health physician clinic" to simply,
"mental health clinic."
3:30:06 PM
REPRESENTATIVE JOSEPHSON asked what prompted the proposed bill.
MS. NISBETT asked whether he was referring specifically to
Licensed Marriage and Family Therapists (LMFTs).
REPRESENTATIVE JOSEPHSON answered in the affirmative.
MS. NISBETT deferred the question to a member of the board.
REPRESENTATIVE JOSEPHSON asked why marriage and family
therapists are the feature of this bill.
3:32:29 PM
DOROTHEA GODDARD-AGUERO, Public Member, Board of Marital and
Family Therapy, Office of the Governor, testified in support of
HB 353. She explained the proposed bill would clarify the
requirements to define who can be a supervisor. She added the
board has very few members. She said she doesn't have the whole
history of the proposed bill.
3:33:53 PM
JON ZASADA, Policy Integration Director, Alaska Primary Care
Association, testified in support of HB 353. He identified the
association of qualified health centers and said they are
operating at 160 sites within the state. He underlined the
importance of expanding the billable mental health labor force.
He said over 11,000 Alaskans receive primary behavioral health
care in community health centers. He underlined the problem
that there is a shortage of billable providers. It was recently
discovered that Alaska health centers have a shortage of up to
18 behavioral health providers. He added at a conservative
estimate, 9,000 additional Alaskans could be served if the labor
force were full.
MR. ZASADA said that currently health centers can only bill
under a bundled rate for services from an MD, a PhD level
psychiatrist, or an LCSW. He added centers also employ LMFTs
and licensed professional counselors, but they cannot bill
Medicaid. He added health centers continue to attract
additional investment in behavioral health and substance abuse
treatment with the goal of serving more patients in
comprehensive care settings. The majority of these funds would
be spent on hiring additional providers, but at this time those
funds aren't sustainable because additional provider types are
not billable under Medicaid. With new federal funding for
addressing the opioid epidemic, community health centers expect
additional direction and funding to continue to provide these
services. He stated LMFTs are a good match for integrated
primary care settings, caring for patients through timely
intervention, short-term therapy, and collaborating with care
coordinators and nurse practitioner prescribers.
MR. ZASADA referenced Section 2 of the proposed bill and said
the aim is to broaden the definition of a supervisor to include
physicians and primary care MDs. He said these are the
predominant supervising types in Alaska community health
centers.
MR. ZASADA spoke to language in Section 4 of the proposed bill.
He said additional clarification was being sought that the
mental health clinic allows primary care federally qualified
health centers to benefit from the provider expansion.
3:38:35 PM
REPRESENTATIVE SULLIVAN-LEONARD said she would like more
information on Section 2.
MR. ZASADA said broader supervision of psychiatrists was being
sought. He added that having a psychiatrist creates an
additional bottleneck to care and could cost well over $100,000
a year.
3:40:24 PM
REPRESENTATIVE KNOPP asked whether there was any concern over
asking psychiatrists who have extensive specialized training to
be supervised by less specialized professionals.
MR. ZASADA answered he is not an expert in supervision practices
but said family practice physicians have a level of behavioral
health supervision in their training and it is a best practice
in other states.
REPRESENTATIVE KNOPP reiterated his concern about the
discrepancies in education in the groups.
MS. NISBETT answered LMFTs must have a master's degree or PhD to
practice and have to have 1,500 hours or two years before they
can get licensed. She added LMFTs must pass an examination and
maintain a clean record.
3:43:03 PM
REPRESENTATIVE WOOL asked about the types of therapy covered in
the proposed bill.
MR. ZASADA answered that in a community health center the trend
has been to integrate care in one site, so a care team would
likely have an MD, a physician's assistant, and a nurse
practitioner, a prescribing nurse practitioner, and a licensed
clinical social worker. He said with the proposed bill, an LMFT
would be added. He stated addressing behavioral health with
medical assistance in one visit helps control the cost of care
overall.
3:46:09 PM
CHAIR KITO opened public testimony on HB 353.
3:46:19 PM
ALBERT WALL, Chief Executive Officer, Peninsula Community Health
Services of Alaska, testified in the hearing on HB 353. He
clarified the services that LMFTs provide and how LMFTs bill.
He said there is currently a way for LMFTs to bill through
Medicaid. He said they can bill at a community mental health
center that is a grantee of the state. He said the
reimbursement rate on the rehabilitation side is very poor, so
many of them do not. He explained it is the bottleneck that
needs to be addressed. He added right now oversight is limited
to psychiatrists and there are not enough in the state to
provide oversight for clinicians.
MR. WALL said he strongly supports an advanced nurse
practitioner being given the ability to supervise as they have
specialized training and it would take some of the burden off
the smaller providers in the state. He said most small clinics
don't have the money to hire a full-time psychiatrist and
allowing advanced nurse practitioners to sign off would reduce
the administrative and financial burden on the clinic, so it can
provide more services for less money.
3:50:20 PM
CHAIR KITO spoke to the supervision aspect and said he was
confused about a psychiatric nurse practitioner supervising a
licensed psychiatrist as they would not have the same experience
or be qualified to sign off on mental health experience for
licensing.
MR. WALL gave the example of his organization. He stated the
Chief Medical Officer (CMO) there is a psychiatrist. He added
the center is under two separate sets of regulations as they are
a federally qualified center and a Division of Behavioral Health
grantee. He said there are also two advanced nurse practitioners
with psychiatric experience. He added he is more comfortable
with advanced nurse practitioners having oversight of LMFTs as
they have direct contact with evidence-based practice and
clinical work.
CHAIR KITO asked whether advanced nurse practitioners provide
therapy services.
MR. WALL answered they can provide therapy services, but most do
not because they tend to bill at the top end of their licensure.
CHAIR KITO reiterated his concern. He said he did not think the
state would accept that a LMFT could sign off on the therapy
hours of a licensed psychologist.
MR. WALL said he did not think the proposed bill was asking for
LMFTs to sign off on hours.
CHAIR KITO stated he was trying to understand the knowledge and
experience of the people who would be given the ability to sign
off.
3:55:24 PM
REPRESENTATIVE JOSEPHSON surmised the aim of the proposed bill
would be to expand the number of mental health practitioners
that are able to bill for Medicaid. He asked whether that was
the case.
MR. WALL clarified that the bill is not about supervision of
client hours. He said there are two different types of
supervision. He explained that when a therapist is going for
licensure, they receive 15 hours of oversight in which trainers
observe therapy and educate on improvements. He stated that was
not in the proposed bill. The supervisors are supervising the
actual clinical work only for the submission of the billing
process. Currently, psychiatrists are the only people that can
do that and LMFTs can't do the work they are trained to do
because there are not enough people to provide oversight.
3:59:07 PM
CHAIR KITO announced he would leave public testimony open on HB
353.
CHAIR KITO held over HB 353.
HB 277-BROADBAND INTERNET: NEUTRALITY/REGULATION
3:59:25 PM
CHAIR KITO announced that the next order of business would be
HOUSE BILL NO. 277, "An Act relating to the regulation of
broadband Internet; and making certain actions by broadband
Internet service providers unlawful acts or practices under the
Alaska Unfair Trade Practices and Consumer Protection Act."
3:59:24 PM
JACOB GERRISH, Staff, Representative Scott Kawasaki,
reintroduced HB 277 on behalf of Representative Kawasaki, prime
sponsor. He said HB 277 would require internet service
providers (ISPs) to engage in net neutrality practices for all
users.
4:00:29 PM
TOM BRADY, Engineering Manager, Microcom, Testified in the
hearing on HB 277. He explained that net neutrality is only
possible when bandwidth is unlimited. When an ISP has unlimited
bandwidth, it has no reason to prioritize one service over
another. He stated bandwidth is limited, particularly in rural
Alaska. He said the market allocates the scarce resource of
bandwidth. He added that technically, not all internet packets
are equal. He said he wondered whether there have been
complaints about packages being treated unfairly before or after
2015 when net neutrality was created. He asked, "What is the
extent of the problem we are trying to solve?" He suggested the
general lack of bandwidth in Alaska forces an allocation of
resources. He said doing away with a market-based allocation
and replacing it with a government-adjudication allocation would
reintroduce a period of chaos until the government determines
who gets to have what and would slow down deployment of more
bandwidth in the rural market since quality of service would be
differentiated based on the government's perception of need.
4:04:01 PM
REPRESENTATIVE WOOL asked what changed in 2015.
MR. BRADY answered that in 2015 the Federal Communications
Commission (FCC) imposed net neutrality and it was reversed in
2017.
REPRESENTATIVE WOOL asked whether the system was neutral prior
to 2015.
MR. BRADY explained that prior to 2015 there was no requirement
for neutrality.
CHAIR KITO shared his understanding that before 2015, there was
no regulation but there was concern that there could be
differential pricing schemes put into place. In 2015, there was
an administrative order that restricted that opportunity and
that order was repealed in 2017. He said there were not any
changes or restrictions seen in how things had been operating.
MR. BRADY restated his query whether anything had happened
before or since 2015, or since 2017, that posed a problem.
CHAIR KITO said that he thought it was a concern that there
might be inequitable activity in the area of internet service.
MR. BRADY answered that since Alaska has services from a
national provider, if Alaska ends up being substantially
different, there is a risk of the national provider exiting the
state.
4:08:52 PM
REPRESENTATIVE BIRCH shared his understanding that the issue is
largely a federal issue, not a local or a state issue. He asked
whether Mr. Brady felt it is a federal issue.
MR. BRADY answered in the affirmative. He clarified that in the
case of AT&T, the company would have to manage its service
differently in Alaska and Kansas and this could prove onerous
and could be overturned at a federal level.
4:10:12 PM
GEORGE PIERCE testified in support of HB 277. He said the state
depends on the freedom of the internet. He suggested that to
limit access to information puts free speech on the line and is
more important than pricing issue. He said 60 percent of people
in the state live in rural Alaska and restricted broadband is
crucial to rural Alaska's lifeline.
4:12:50 PM
REPRESENTATIVE BIRCH asked Mr. Pierce whether he has any
personal experience with problems with the internet.
MR. PIERCE answered, "They slowed it down."
REPRESENTATIVE BIRCH asked for confirmation that he had personal
experience with internet speeds slowing.
MR. PIERCE answered in the affirmative.
4:14:36 PM
JODE SPARKS testified in support of HB 277. He said as a youth
he goes online to study, relax, shop, interact with friends, and
interact with different viewpoints around the world. He gave
the example of teleconferences with other students around the
world. He said telecommunications is important to teaching and
learning in Alaska. He said when the current administration
proposed changes to net neutrality, polls cited 83 percent
approval [of net neutrality]. He mentioned the executive action
of the governor of Washington state against the repeal of net
neutrality.
4:17:40 PM
REPRESENTATIVE KNOPP asked whether there were other states
besides Washington and Montana which had taken action against
the repeal of net neutrality.
MR. SPARKS answered that he did not know, but that the repeal
had only occurred in December [2017].
REPRESENTATIVE BIRCH asked whether Mr. Sparks had witnessed any
intentional slowing down of bandwidth.
MR. SPARKS explained that industry hasn't taken action yet, but
that he felt he could not have faith in the industry self-
regulating.
4:20:31 PM
KYRSTYN KELLY testified in support of HB 277. She explained
that many communities do not have broad access to ISPs. She
stated it was a huge concern as those communities rely on
internet service for education. She shared her belief that
industry would not self-regulate.
REPRESENTATIVE BIRCH said he thinks there is competition
available and that a customer can choose another provider if
they feel the service they receive is not adequate. He asked
whether Ms. Kelly had personal experience with broadband
slowing.
MS. KELLY answered that she had not, but that it is too early to
see.
REPRESENTATIVE WOOL reiterated his question regarding net
neutrality and whether it has changed since the inception of the
internet.
MR. GERRISH answered the executive order has not gone into
effect and that he thought the date would be April 23rd [2018].
REPRESENTATIVE WOOL asked whether the proposed bill is a
symbolic gesture, or whether it was intended to ensure that the
internet service in the state is not throttled further at a
state level.
MR. GERRISH answered that he did not want to speak to the intent
of the bill, but that he thought it may have both effects.
4:26:16 PM
REPRESENTATIVE BIRCH shared his understanding that the FTC
managed the internet from 1996 to 2015, when the authority was
moved to the FCC and it just went back to the FTC. He asked
whether it was Mr. Gerrish's understanding as well.
MR. GERRISH answered it is not his understanding. He explained
that 1996 was when the Title 1 and Title 2 service distinction
was made. He added net neutrality has been the regulation
standard since 1996. He said there have been cases of companies
caught slowing services. He gave the example of ComCast slowing
a site called BitTorrent. He said the FCC had issued an order
to stop the throttling at the time.
4:28:55 PM
JEANIE PIERCE testified in support of HB 277. She stated that
Netflix had been slowed down. She stated the repeal would not
be implemented until April 30 [2018], so no change would be seen
yet.
4:30:29 PM
CHAIR KITO closed public testimony on HB 277 upon ascertaining
that there was no one else who wished to testify.
4:30:33 PM
CHAIR KITO commented that he felt the legislation was attempting
to address something that has not happened yet. He added he
thinks there is a need to ensure equitable access to the
internet. He said he was not sure that the bill was the correct
vehicle by which to address the issue.
REPRESENTATIVE JOSEPHSON said that something happened with net
neutrality in 2017. He said he would support the bill but that
he felt it would act more as a resolution than a bill.
REPRESENTATIVE WOOL commented that sending a signal to Congress
was worth doing and he would support the bill.
4:34:23 PM
REPRESENTATIVE BIRCH stated his objection to moving the bill due
to the risk that companies could move away. He said he thought
it was good to have a choice. He said it should be a federal
issue.
REPRESENTATIVE SULLIVAN-LEONARD said she shared the concerns
stated by Representative Birch. She added that she saw a "fear
factor" in the proposed bill and she would not be supporting it.
4:37:24 PM
REPRESENTATIVE KNOPP said that he likes the net neutrality
concept. He said he preferred to wait until there is a problem.
He said he though industry should have the right to market their
product as faster service.
REPRESENTATIVE WOOL said he does not pay for the fastest
internet service and he does not have access to more ISPs in his
area. He said he supports the net neutrality concept.
4:39:52 PM
REPRESENTATIVE WOOL moved to report HB 277 out of committee with
individual recommendations and the accompanying fiscal notes.
A roll call vote was taken. Representatives Josephson, Wool,
Stutes, and Kito voted in favor of HB 277. Representatives
Sullivan-Leonard, Knopp, and Birch voted against it. Therefore,
HB 277 was reported out of the House Labor and Commerce Standing
Committee by a vote of 4-3.
The committee took an at-ease from 4:40 p.m. to 4:44 p.m.
4:43:41 PM
CHAIR KITO passed the gavel to Vice-Chair Wool.
HB 309-REJECT OFFICERS COMP. COMMISSION REPORT
4:44:32 PM
VICE-CHAIR WOOL announced that the next order of business would
be HOUSE BILL NO. 309, "An Act disapproving all recommendations
of the State Officers Compensation Commission relating to the
compensation, benefits, and allowances of state officers; and
providing for an effective date."
4:45:03 PM
ALLIANA SALANGUIT, Staff, Representative David Guttenberg,
Alaska State Legislature, introduced HB 309 on behalf of
Representative Guttenberg, prime sponsor. She stated
Representative Guttenberg had introduced the proposed bill as he
was concerned with the process leading up to the final
recommendations made by the state's officers compensation
commission. She said he believes the commission was enacted to
depoliticize legislators' salaries and that he believes the
recommendations failed to meet the obligation to recommend an
equitable rate for legislators.
4:46:03 PM
REPRESENTATIVE BIRCH asked whether the only issue is the per
diem for Juneau legislators.
MS. SALANGUIT said Representative Guttenberg's concern is the
process leading up to that recommendation but that the proposed
bill would affect legislators working within 50 miles of their
residence.
REPRESENTATIVE BIRCH restated his question that the only issue
at play is that anyone within 50 miles would not receive per
diem.
MS. SALANGUIT said that was a result of the findings but that
Representative Guttenberg was primarily concerned that "there
wasn't enough data, facts, and figures" and that it was
political.
4:47:27 PM
REPRESENTATIVE KNOPP commented that he also felt the first
ruling was completely arbitrary. He added that he thought the
second go-around was not arbitrary and asked why that was also
considered arbitrary.
MS. SALANGUIT referenced the January 17 [2018] meeting and urged
Representative Knopp to listen to the proceedings.
4:48:45 PM
REPRESENTATIVE JOSEPHSON moved to adopt CS for HB 309 as the
working document.
VICE-CHAIR WOOL objected for the purpose of discussion.
4:49:10 PM
CHAIR KITO stated he would give a brief PowerPoint presentation
[included in committee packet]. He underlined it was entirely
his work and not the work of the committee or of the bill
sponsor.
CHAIR KITO presented a series of slides on "ASOCC History" on
slides 1-6. He began by addressing slide 1, "Compensation
Methods." The slide shows a map of the United States with each
state's compensation method indicated with a color key.
4:50:53 PM
CHAIR KITO moved to slide 2, "ASOCC History":
Alaska Officers Compensation Commission
Authorized under AS 39.
Passed as House Bill 417 during the 25th Alaska
Legislature (2008).
2009 was the first issued report.
4:51:19 PM
CHAIR KITO addressed slide 3:
2009 Report Recommended:
Legislator Salary of $50,400
An additional $500 for President of the Senate
and Speaker of the House
Per Diem, Office Expenses and Moving Expenses to
be set by Legislative Council
4:51:31 PM
CHAIR KITO continued to slide 4:
2011 Recommended an increase to salaries of
Governor ($125k to $145k)and Lt. Governor ($100k
to $115k). Recommendation was not rejected.
2014 Recommended an increase to salaries for
Governor, Lt. Governor and Department Heads.
Recommendation was rejected by Legislature and
Governor.
CHAIR KITO spoke to slide 5:
ASOCC recommended salary increases for the
Governor and Lt. Governor on two occasions and
for department heads on one occasion,
2017 was the first recommended change to
legislative compensation since 2009, and that
recommendation was to decrease Juneau legislators
compensation.
4:53:09 PM
VICE-CHAIR WOOL commented that legislative council recommends
per diem, but the commission chose to reduce the Juneau, Alaska,
legislators' compensation.
CHAIR KITO added that in 2009 the compensation commission said
that it would not address per diem and that it should be in the
remit of Legislative Council.
4:54:00 PM
REPRESENTATIVE BIRCH remarked that Chair Kito had used the term
"compensation" as it relates to per diem. He asked whether he
considered per diem as part of the compensation.
CHAIR KITO said he would address the issue further along.
4:54:44 PM
CHAIR KITO moved on to slide 6:
In 10 years of existence, the ASOCC has failed
to engage in a periodic review of legislative
compensation, however, has on two occasions
recommended increases to executive compensation.
CHAIR KITO spoke to the slides on equitable compensation. He
began with slide 8, "Current Compensation":
Base Salary $50,400
Per diem based on federal short-term rate
Relocation expenses provided
Travel per diem provided
Non-Juneau Base = $75,150
Juneau Base = $68,692.5
Total All Legislators Base = $4.49 Million
4:56:30 PM
REPRESENTATIVE SULLIVAN-LEONARD shared her understanding that
per diem is calculated by the [U.S.} Department of Defense. She
asked about the process.
CHAIR KITO answered that per diem is adopted by Legislative
Council, but since the original determination, there is nothing
in the record that explains why the type of per diem or the
adjustment for Juneau legislators was adopted.
REPRESENTATIVE SULLIVAN-LEONARD asked whether the Legislative
Council had looked at per diem on a yearly basis.
CHAIR KITO answered that the discussion had come up during his
time on Legislative Council in April [2017].
4:59:12 PM
VICE-CHAIR WOOL asked for confirmation that the Juneau-based
legislators are getting 75 percent of the federal short-term
rate, but Juneau legislators pay tax on it as income.
CHAIR KITO answered that it is correct that per diem is counted
as taxable income for Juneau legislators.
4:59:56 PM
REPRESENTATIVE BIRCH offered the observation that Anchorage,
Alaska, or over half of legislators would receive no per diem
for a local special session so it would be considerable savings.
CHAIR KITO answered that it had been calculated out for a
special session, and the Anchorage peridium rate is
significantly higher than the rate for Juneau, Alaska, meaning a
special session in Anchorage, Alaska, would cost much more.
5:01:20 PM
REPRESENTATIVE KNOPP answered Representative Sullivan-Leonard's
question saying that the Department of Defense does calculate
per diem.
5:02:11 PM
VICE-CHAIR WOOL held over HB 309.
3:48:18 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
5:02 p.m.