Legislature(2015 - 2016)CAPITOL 106
01/22/2015 08:00 AM House STATE AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| Overview(s): Department of Public Safety | |
| Overview(s): Department of Administration | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE STATE AFFAIRS STANDING COMMITTEE
January 22, 2015
8:04 a.m.
MEMBERS PRESENT
Representative Bob Lynn, Chair
Representative Wes Keller, Vice Chair
Representative David Talerico
Representative Liz Vazquez
Representative Louise Stutes
Representative Max Gruenberg
Representative Jonathan Kreiss-Tomkins
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
OVERVIEW(S): DEPARTMENT OF PUBLIC SAFETY
- HEARD
OVERVIEW(S): DEPARTMENT OF ADMINISTRATION
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
GARY FOLGER, Commissioner
Department of Public Safety (DPS)
Anchorage, Alaska
POSITION STATEMENT: Presented an overview of the Department of
Public Safety (DPS).
TERRY VRABEC, Deputy Commissioner
Department of Public Safety (DPS).
Juneau, Alaska
POSITION STATEMENT: Gave a PowerPoint presentation during the
overview of the Department of Public Safety (DPS).
KELLY HOWELL, Director
Division of Administrative Services
Department of Public Safety (DPS)
Anchorage, Alaska
POSITION STATEMENT: Answered a question regarding grants during
the overview of the Department of Public Safety (DPS).
KATHY LEA, Chief Pension Officer
Central Office
Division of Retirement & Benefits (DRB)
Department of Administration (DOA)
Juneau, Alaska
POSITION STATEMENT: Answered questions during the overview on
the Department of Administration (DOL).
AMY ERICKSON, Director
Division of Motor Vehicles (DMV)
Department of Administration (DOA)
Anchorage, Alaska
POSITION STATEMENT: Answered questions regarding gender
identity and licensing during the overview of the Department of
Administration (DOA).
SHELDON FISHER, Commissioner
Department of Administration (DOA)
Juneau, Alaska
POSITION STATEMENT: Provided a PowerPoint presentation during
the overview on the Department of Administration (DOA).
ACTION NARRATIVE
8:04:55 AM
CHAIR BOB LYNN called the House State Affairs Standing Committee
meeting to order at 8:04 a.m. Representatives Keller, Kreiss-
Tomkins, Stutes, Talerico, Vazquez, and Lynn were present at the
call to order. Representative Gruenberg arrived as the meeting
was in progress.
CHAIR LYNN introduced the committee secretary from House
Records, and then he asked each member of the committee to
introduce him/herself. He related the story of his gavel, given
to him by his maternal grandmother.
^OVERVIEW(S): DEPARTMENT OF PUBLIC SAFETY
OVERVIEW(S): DEPARTMENT OF PUBLIC SAFETY
8:09:16 AM
CHAIR LYNN announced that the first order of business was the
overview by the Department of Public Safety.
8:09:39 AM
GARY FOLGER, Commissioner, Department of Public Safety (DPS),
presented an overview of DPS. He listed the following mottos on
which he stands: "In honor there's hope"; and "The only thing
necessary for evil to triumph is for good men to do nothing."
In response to Chair Lynn, Commissioner Folger said he grew up
in Cantwell, Alaska, went to high school in Heely and Palmer,
and has served approximately 32 years as an Alaska State Trooper
- all of that time in the area of wildlife. He indicated that
he enjoys his career and serving Alaska. He said next year
would be the department's seventy-fifth anniversary; the
department is one of the oldest in the state. He said the
budget for DPS is just under 2.5 percent of the entire state
budget, and the department receives about one quarter of one
percent of capital improvement monies. He relayed that DPS
employs approximately 885 full-time employees and 926 part-time
employees, many of whom are employed in the summer.
8:12:14 AM
TERRY VRABEC, Deputy Commissioner, Department of Public Safety
(DPS), stated that he has 30 years' experience in law
enforcement, having worked in the Kenai Peninsula, for the City
of Fairbanks, and for the University of Alaska, including time
as the chief of police. He indicated that a former commissioner
was responsible for his involvement with the Alaska Police
Standards Council, and former Commissioner Joe Masters appointed
him as deputy commissioner.
8:13:07 AM
DEPUTY COMMISSIONER VRABEC directed attention to a hardcopy of a
PowerPoint presentation [included in the committee packet]. He
turned to page 2 of the PowerPoint, which states that the
mission of DPS is "to ensure public safety and enforce fish and
wildlife laws." The department comprises urban and rural units
across the state and offers the following core services: rural
law enforcement, domestic violence and sexual assault programs,
statewide public safety programs, resource protection, and
highway safety. He directed attention to an organizational
chart on page 3 of the PowerPoint, which shows that the
commissioner oversees the Division of Administrative Services,
the Division of Alaska State Troopers, and the Division of
Alaska Wildlife Troopers. He related that his job as deputy
commissioner includes overseeing the Division of Statewide
Services, the Division of Fire and Life Safety, the Crime Lab,
and [the Public Safety Academy] in Sitka.
8:14:48 AM
CHAIR LYNN asked for further information regarding the Public
Safety Academy.
8:15:07 AM
COMMISSIONER FOLGER said when the economy "tanked" in the mid-
1980s, the department did not hire many troopers. He relayed
that there were about 40 trainees at the academy in 1990. He
stated that "in this next year" there are 61 troopers that can
retire, and there will be 51 state troopers that can retire the
following year. He said DPS is at a crossroads and that "the
big elephant in the room is the budget." The department is
trying to determine how many applicants to pick up in its next
training at the academy. He stated that the scary issue is that
out of the 61 that can retire, most of them are in management
positions.
CHAIR LYNN emphasized his concern and the importance of DPS to
survival.
8:16:55 AM
DEPUTY COMMISSIONER VRABEC said the Public Safety Academy not
only trains troopers, but also trains local officers, airport
police, university police, and park rangers. He acknowledged
that Representative Kreiss-Tomkins had delivered the last
graduation speech.
8:17:57 AM
COMMISSIONER FOLGER answered a series of questions from
Representative Vazquez. He estimated that perhaps 30 of the
aforementioned 61 troopers would retire [as soon as eligible].
He said there are approximately 378 troopers currently, and that
number has not changed much over the last 20 years. He said the
troopers are taken care of in terms of vehicle and equipment
needs. He indicated that the needs of the department depend on
many considerations. He explained that a lot of dollars go into
special training in areas such as child forensic interview and
vehicle accident reconstruction. He indicated that that sort of
special training is sometimes expected during court proceedings.
REPRESENTATIVE VAZQUEZ stated her desire to see a breakdown of
the department's personnel needs. She imparted that her
experience as a prosecuting attorney has shown troopers behaving
professionally, and she said she knows the department has not
really increased the troops out in the front line.
8:20:50 AM
COMMISSIONER FOLGER responded to a series of questions from
Representative Gruenberg. He said the television reality show,
Alaska State Troopers, initially increased the number of people
interested in becoming a trooper; however, the decision was made
to cancel the show because it had "run its course." He said the
department model is similar to that of Oregon; however, Alaska
is unique in its geography. He said DPS worked closely with
Washington and Colorado regarding a marijuana initiative.
REPRESENTATIVE GRUENBERG expressed his desire to speak with
Commissioner Folger further in order to "not have to reinvent
the wheel."
8:23:37 AM
CHAIR LYNN expressed his pleasure in having Representative
Gruenberg back on the committee.
8:24:02 AM
DEPUTY COMMISSIONER VRABEK, in response to Representative
Stutes, confirmed that Village Public Safety Officers (VPSOs)
receive their training from the Public Safety Academy in Sitka.
He mentioned a bill that passed in 2014 that would allow VPSOs
to be armed, and said the department is working with the first
group that would be transitioning into that capacity. He
estimated that currently there are 80 VPSOs, and said there is
constant effort in recruiting people to become VPSOs.
8:25:22 AM
DEPUTY COMMISSIONER VRABEK offered an example of a need that
required specific troopers to handle a special assignment. He
said it was called the criminal suppression unit, and it was in
response to an increase in property crimes in the Anchorage
valley. He said any special unit that is formed will require
extra resources.
8:26:50 AM
COMMISSIONER FOLGER, in response to Chair Lynn, confirmed that
DPS has a special intelligence unit that partners with the U.S.
Department of Homeland Security and other federal agencies to
address potential terrorism in Alaska. He said it is almost a
stand-alone unit within the Division of Alaska State Troopers.
CHAIR LYNN expressed his desire for Alaska to strengthen its
defense against terrorism.
8:28:13 AM
DEPUTY COMMISSIONER VRABEC indicated that the special unit is
made up of members of the Federal Bureau of Investigation (FBI),
the Anchorage Police Department, and the U.S. Department of
Homeland Security. He suggested committee members may like to
meet some of the members of the special unit.
8:28:36 AM
COMMISSIONER FOLGER added that the room used by the special unit
is "wiretap-proof," and he expressed his willingness to show it
to members of the committee.
8:29:09 AM
DEPUTY COMMISSIONER VRABEK said the department holds a high
standard for its troopers and has a rigid screening and training
process. He said although many people may be interested in
becoming a trooper, some of those people change their minds when
they discover what is involved in training for the job. In
response to Chair Lynn, he said the department does not have a
reserve program. He explained that it would be difficult to put
someone through that kind of training to then be in reserve
status.
8:30:45 AM
COMMISSIONER FOLGER addressed page 6 of the PowerPoint,
regarding the Division of Alaska Wildlife Troopers, which
includes a Marine Section and an Aircraft Section. He said
there are about 40 vessels larger than 20 feet in length that
control Alaska's waterways. He said fisheries for crab and
salmon allow the department to patrol past the three-mile limit
out to the 200-mile limit. He noted there are approximately 43
aircraft used within the department, the bulk of which are super
cubs. Other aircraft used include five helicopters, two King
Air craft, and about six Cessna-type aircraft. He stated that
those are necessary patrol vehicles for a state that is largely
without road access.
8:32:34 AM
COMMISSIONER FOLGER, in response to Representative Kreiss-
Tomkins, confirmed that DPS does provide air support to the
Office of the Governor.
8:33:12 AM
DEPUTY COMMISSIONER VABREK directed attention to page 7 of the
PowerPoint, which lists information about the Division of
Statewide Services. He said the division houses many behind-
the-scenes staff important to the success of the department as
well as other departments across the state. Included within the
division is the Criminal Records & Identification Bureau, which
houses the Alaska Public Safety Information Network - used daily
to gather information and a link to the national system. Also
found within the bureau is the Alaska Automated Fingerprint
Identification System, uniform crime reporting, the sex offender
registry, concealed handgun permitting, and computer support.
In response to Chair Lynn, he said current information available
from a person's driver's license includes not only the
information on the license, any warrants for arrest, and any
other past issues, but also information on the national system
about a person's activity in any other state. He said the
information is confidential and secure; a trooper has to have a
reason to use the system. He said depending on connectivity,
the response from the system can be available in less than a
minute. He reported that the bureau processed over 62,000
fingerprint cards and over 70,000 criminal history records.
8:37:04 AM
DEPUTY COMMISSIONER VRABEK, in response to Representative
Kreiss-Tomkins, offered his understanding that the fee for a
criminal background check is $25.
COMMISSIONER FOLGER, in response to a follow-up question, said
he does not know how many $25 fees were collected. He said, for
example, school bus drivers must have a criminal history records
search performed.
DEPUTY COMMISSIONER VRABEK said there are a considerable number
of requests made because many small business employers require
background checks. In response to Representative Kreiss-
Tomkins, he said he could find out the exact number, and added
he thinks the department is trying to cover its costs rather
than make a profit.
8:38:59 AM
COMMISSIONER FOLGER added that the automated finger print system
is "pretty amazing technology."
8:39:09 AM
REPRESENTATIVE VAZQUEZ commented that the criminal background
checks are essential for many employees in the health sector.
8:39:39 AM
DEPUTY COMMISSIONER VRABEK directed attention to page 8 of the
PowerPoint, which addresses the Division of Fire and Life
Safety. He said the state fire marshal is Kelly Nicolello, who
oversees deputy fire marshals throughout the state. The
division conducts training statewide, develops building codes,
and does plan reviews. He remarked that there are a lot of
agencies and fire departments in Alaska. He stated that the
division sometimes sends investigators to assist in
investigations of fires.
DEPUTY COMMISSIONER VRABEK turned to page 9 of the PowerPoint,
which addresses the "Scientific Crime Detection Lab." He said
the lab receives evidence from every police department in the
state.
8:41:14 AM
CHAIR LYNN recognized there was controversy about the cost of
running a crime lab, but emphasized that he has always been in
support of the lab.
DEPUTY COMMISSIONER VRABEK responded that some departments are
not able to cover the cost, so DPS tries to help out when it
can. He stated that in fiscal year 2014 (FY 14), the lab had
received over 4,500 requests and was able to complete over 4,200
of them.
8:42:32 AM
CHAIR LYNN asked if deoxyribonucleic acid (DNA) is collected if
someone is convicted or [charged] and whether the lab has a DNA
library bank.
COMMISSIONER FOLGER answered in the affirmative. He said
depending on the circumstance or crime, that DNA information is
added into a national database called the Combined DNA Index
System (CODIS). He said most of the DNA information is taken
after conviction, although there are some parameters that would
set it ahead of conviction, for example, when CODIS solved the
Bonnie Craig case.
8:43:43 AM
DEPUTY COMMISSIONER VRABEK offered his understanding that in FY
14, 735 requests [related to DNA] were made, and 632 of those
requests were completed.
8:44:17 AM
COMMISSIONER FOLGER, in response to Chair Lynn, said it is
difficult to think of an entity with which DPS does not partner.
CHAIR LYNN mentioned an incident regarding the [Alaska] National
Guard, and said it seems there may be a breakdown in
communication between the military and local law enforcement.
COMMISSIONER FOLGER replied that there certainly is a breakdown
in communication, and DPS is addressing the issue.
DEPUTY COMMISSIONER VRABEK said some of Alaska's multiple
military installations may fall within a municipality;
therefore, it may not always be the troopers that investigate.
8:45:38 AM
DEPUTY COMMISSIONER VRABEK directed attention to page 10, which
addresses the Division of Administrative Services (DAS). The
division oversees several areas, including finance, budget,
human resources, and grants management.
8:46:33 AM
DEPUTY COMMISSIONER VRABEK, in response to Representative
Gruenberg, said DPS has full-time staff looking for grant
possibilities. He said there are many factors in qualifying for
grants. Further, he noted one caveat is that the department may
receive money through a grant, but there is no guarantee as to
the lifetime of that financial resource.
8:49:13 AM
KELLY HOWELL, Director, Division of Administrative Services,
Department of Public Safety (DPS), in response to Representative
Gruenberg, said the division has three staff assigned to grant
management. She said they make use of several systems for
monitoring federal grants to find out when they are available.
One of those systems is called "grants.gov." She said the
people in charge of grants sign up for notifications, which can
be tailored to the type of grant desired. She said DPS is the
state administrating agency for many justice grants, such as the
justice assistance grant. She said, "We retain a certain
portion of that, as well as sub-grant out to local law
enforcement agencies and other agencies for criminal justice
purposes." The Council on Domestic Violence and Sexual Assault
(CDVSA) is the designated agency to receive federal grants
related to domestic violence, sexual assault, and other victims'
services grants.
8:51:17 AM
MS. HOWEL, in response to Representative Keller, said the
department was asked to make cut-backs, and it considered that
request an opportunity to increase efficiency, maximize the
strengths of its employees, consolidate services where possible,
and focus its finite resources on its highest priority, which is
to provide public safety to the state. She said consideration
is being made of vacant positions to determine whether they are
critical. The department is looking at certain services it
provides that may not be directly related to its mission of
providing public safety and determine whether it is the right
department for the service or another department or non-profit
agency could take it over. She said, "Everything is on the
table in terms of trying to identify ... efficiencies ...."
8:54:13 AM
DEPUTY COMMISSIONER VRABEK returned to the PowerPoint, to page
11, and listed the three councils overseen by DPS: the Alaska
Fire Standards Council (AFSC), the Alaska Police Standards
Council (APSC), and CDVSA. He said AFSC is a newer council and
trains and certifies fire fighters and emergency medical
technicians (EMTs) across the state. The APSC oversees the
certification of about 3,000 police and corrections officers.
The CDVSA has done incredible work in the state with shelters
and grants.
DEPUTY COMMISSIONER VRABEK noted that there are [pie charts on
pages 12-15 of the PowerPoint]. He offered to answer further
questions.
8:56:02 AM
CHAIR LYNN expressed the willingness of the committee to assist
"the commission."
8:56:37 AM
REPRESENTATIVE GRUENBERG expressed interested in finding out
whether the department is employing the use of more efficient
vehicles for emergency response whenever full-size vehicles
traditionally used are not necessary.
DEPUTY COMMISSIONER VRABEK said he would check with the fire
marshal for information.
REPRESENTATIVE GRUENBERG mentioned Google glasses - glasses that
are connected to a computer so that a doctor at a hospital can
see what is going on in an ambulance. He suggested it could
save lives in remote areas where an ambulance cannot make it to
a hospital quickly. He emphasized the need for innovation
because of Alaska's small population, lack of trained personnel,
and vast geography.
8:59:27 AM
REPRESENTATIVE KELLER mentioned that the legislature had passed
Senate Bill 64. He then referred to [the "Transition Team
Conference Report"] and indicated that the transition team had
commented on criminal justice reform and brought up the idea of
resuscitating the Controlled Substances Advisory Commission.
8:59:48 AM
DEPUTY COMMISSIONER VRABEK acknowledged that he had also read
that, but said the department had not yet spent time discussing
the issue.
9:00:03 AM
REPRESENTATIVE GRUENBERG mentioned a device that is used to
allow ambulances and fire trucks to pass through intersections
quickly, and said it was installed in Anchorage a few years ago.
He offered his understanding that police vehicles could not use
the device because they move too fast. He said he would like to
hear more about this topic.
COMMISSIONER FOLGER remarked that almost every day there is an
article in the paper mentioning a state trooper. He opined that
DPS is an important department, and he stated that he loves
serving the people of Alaska. He recognized the financial
challenges faced by the department and expressed his willingness
to work together [with the legislature to find solutions].
9:01:05 AM
The committee took an at-ease from 9:01 a.m. to 9:05 a.m.
^OVERVIEW(S): DEPARTMENT OF ADMINISTRATION
OVERVIEW(S): DEPARTMENT OF ADMINISTRATION
9:05:27 AM
CHAIR LYNN announced that the final order of business was the
overview from the Department of Administration.
9:06:03 AM
CHAIR LYNN noted that a previous member of the legislature had
retired and lost his retirement benefits because of "an error on
somebody's part someplace." He said he would like to know what
can be done to prevent that from happening in the future.
9:06:48 AM
KATHY LEA, Chief Pension Officer, Central Office, Division of
Retirement & Benefits (DRB), Department of Administration (DOA),
prefaced her response by explaining that because of
confidentiality statutes, she could not discuss the specifics of
the case to which Chair Lynn referred; however, she offered to
speak about the issue in general terms. She stated, "The
pension plans are set up - barring what happened in 2000 that
led us to an unfunded liability - to be self-sustaining." She
reviewed that benefits are funded by contributions to the system
by the employer and employee, and the investment income on the
fund is what pays for "the lifetime of the member." When
benefits are paid, she explained, DRB draws first from the
member's contribution account, and then from the employer's
investment income. She said because the system is designed to
be self-sustaining, it has provisions in it for what happens
when there are errors in the record.
MS. LEA said AS 39.35.520-.522 covers the Public Employees
Retirement System (PERS) and requires the division to recover
any overpayment of benefits that occurs because of an error in
the record in service reporting, salary reporting, or the
computation of benefits. In response to Chair Lynn, she
clarified that those errors could be ones made by the retiree,
by the employer that reports the information to the division, or
errors that are "made in calculation." She said the division
has a fiduciary responsibility, as well as the statutory
requirement, to reclaim benefits when they have been overpaid.
MS. LEA said there are three steps that a member can take to
have redress from an overpayment. There is a waiver provision
at the division level contained within AS 39.35.520(b). She
recalled three of the four criteria that the member must meet in
order to qualify for the waiver: He/she had no way of knowing
the benefit was being paid in error; he/she had not supplied the
division with erroneous information; the overpayment had been
paid for more than two years. If the person does not meet that
criteria, there is a second review that is done at the
commissioner's level. She said two of the elements are the
same, and they are regarding the member not knowing the
overpayment was being made and not having supplied the division
with false information. In addition, when the case has been
brought to the commissioner's review, the person must be able to
prove financial hardship. If no waiver is granted under those
two provisions, the member is given appeal rights and can
present his/her case. If the decision does not go in the favor
of the member, he/she will be awarded $1 in benefit if the
repayment is more than what the benefit is, and that is so the
member's medical benefit can continue.
CHAIR LYNN surmised that a sudden change to $1 a month from, for
example, $1,500 a month would constitute a financial hardship.
MS. LEA answered yes, depending on what the person's other
assets are.
CHAIR LYNN opined that this is a real problem and asked if a
solution exists.
MS. LEA replied that the provisions are in place to keep the
system whole. If the state does not collect overpayment of
benefits, then it would be adding to the unfunded liability.
She reiterated that there are three levels at which a member can
present his/her case for waiver, and the overpayment cannot be
waived if he/she does not meet that criteria. She stated that
the independent arbitrator is the Office of Administrative
Hearings, which is where the member can present information
showing financial hardship. She said the division is charged
with ensuring that its members receive every penny they have
earned and accrued, but not one penny more, because the system
must be kept sound for the good of everyone in it.
9:13:41 AM
MS. LEA, in response to Chair Lynn, said cases of overpayment
"to this extent" do not occur frequently; however, she said
there were a rash of cases several years ago that occurred
because of a benefit called the "level income option," in which
the member receives the bulk of his/her benefit prior to turning
sixty five, at which point, when Social Security begins to pay,
the PERS pension is reduced. She said a computer conversion
resulted in the division missing that conversion date and
overpaying those involved for many years. When the division
realized what had happened, it had to go back and adjust the
benefits of all those who were overpaid for several years. She
emphasized that such an occurrence is unusual. The division
goes through the three-step process, at which time the members
who were overpaid had their redress. She offered her
understanding that at the time this occurred, cases went before
the Public Employee Retirement Board, and it was determined that
a member had reason to know that his/her retirement would be
reduced, because he/she had been sent a letter to that effect,
but had not notified the division when the payments remained the
same.
MS. LEA said there are one or two overpayment cases that the
division addresses every month, and they typically are
overpayment of Alaska cost of living allowance (COLA), where
people leave the state for more than 90 days and do not tell the
division.
CHAIR LYNN asked if there is any way to cover the state with
insurance in cases where it was the state's responsibility for
having made the overpayment and the member was not aware that it
was happening.
9:17:30 AM
MS. LEA answered that it would be rare for the same
circumstances to come up again where there was a substantial
overpayment.
CHAIR LYNN remarked that even though it may be rare, the effect
on just one person is marked.
MS. LEA said the division makes a great effort to help people
who find themselves in such a situation obtain a waiver. She
said under statute, overpayments can be paid back in two ways:
a lump sum or through the lifetime of a person's benefit. It
may be possible for the division, through the Office of
Administrative Hearings, to accept a lesser amount; in some
cases, the division will allow the member to make payments so
that at some point his/her benefit is restored.
CHAIR LYNN opined that this topic was too complicated to
continue during the present overview; however, he said he would
like to meet with the division to fix the issue.
9:19:46 AM
MS. LEA, in response to Representative Vazquez, said the
aforementioned appeal process can be used to address the
collection process, as well as to determine the amount owed. In
response to a follow-up question, she added that also during an
appeal, the member can challenge a decision that was made
regarding the situation not being a financial hardship.
9:20:57 AM
AMY ERICKSON, Director, Division of Motor Vehicles (DMV),
Department of Administration (DOA), answered a series of
questions from Chair Lynn regarding gender identity as it
relates to the job of the DMV in issuing driver's and
identification licenses. She said a person coming in to the DMV
to apply for a driver's license or identification for the first
time would need to provide the DMV with his/her legal name,
place of birth, sex, and mailing address, along with showing
documentation such as a birth certificate or passport in order
to acquire that identification. She said it has happened that a
person whose identification showed one sex has relayed another
sex to the DMV. If that happens, the DMV would need
documentation from a healthcare provider who had changed the
person's gender, and the person could provide an amended birth
certificate or a new U.S. passport that would show a new gender,
and the DMV would honor that.
CHAIR LYNN asked if there was one particular situation that
brought this issue to light.
MS. ERICKSON responded as follows:
Back in 2009, a case involved a male-to-female
transgendered person who lived as a female, and her
passport and medical certificate identified her as
female, and she applied for an Alaska license, and her
designation was male. And later, ... DMV discovered
that when she changed her gender, we didn't have
documentation of that change. So, we sent a
cancellation of her license and asked that she provide
documentation that said that she had had surgery. And
it was determined that that was a violation of her
privacy and that DMV didn't have any regulation
promulgated that would allow us to do that. And so,
the court ordered that we promulgate regulations to
allow someone to change their gender.
MS. ERICKSON said the regulation was changed within 180 days.
In response to Chair Lynn, she said that was in 2012.
CHAIR LYNN asked, "Is any kind of legislation appropriate on
this subject in your mind, Ms. Erickson?"
MS. ERICKSON opined that there is no need for legislation.
9:25:45 AM
SHELDON FISHER, Commissioner, Department of Administration
(DOA), began a PowerPoint presentation. He directed attention
to slide 2 of the PowerPoint, which illustrates the diversity of
the department, and he pointed out that about half of DOA is
focused on the public, while the other half serves state
agencies. Commissioner Fisher said he started as commissioner
on Monday, and he expressed his hope that he would be able to
name deputies within the next week. In response to Chair Lynn,
he said he would be happy to come back to discuss the subject
brought up by the chair during the overview of DPS, regarding
[the method by which the state recoups overpayments to
retirees].
COMMISSIONER FISHER said slide 3 shows that DOA serves virtually
all of Alaska. He directed attention to slide 4, which lists
the following DOA services to the public: the Division of Motor
Vehicles; the Division of Retirement and Benefits (DRB), which
manages not only the health plan and benefits for retirees, but
also the health plan for active members; the Public Defender
Agency (PDA) and the Office of Public Advocacy (OPA), both of
which are constitutionally mandated to provide public services
and have heavy caseloads; the Alaska Public Offices Commissioner
(OPOC); the Alaska Oil and Gas Conservation Commission (AOGCC),
which does licensing on behalf of the state for the exploration
of oil, gas, and geothermal resources; the Alaska Public
Broadcasting Commission (APBC), which administers grants for
public radio and television; the Office of Administrative
Hearings, which is an appeal agency staffed by administrative
law judges; and the Violent Crimes Compensation Board (VCCB),
which administers some compensation to victims of violent crime.
COMMISSIONER FISHER listed the following DOA services to state
agencies, as shown on slide 5: the Division of Finance (DOF),
which provides financial, auditing, payroll, and reporting
functions; the Division of General Services (DGS), which focuses
primarily on management of the state's buildings, as well as its
procurement and purchasing process; the Division of Risk
Management (DRM), which manages any claims that occur; the
Division of Personnel and Labor Relations (DOPLR), which takes
care of human resources and labor relations; Enterprise
Technology Services (ETS), which is the centralized portion of
the IT department; and the Division of Administrative Services
(DAS), which takes care of budgeting.
9:30:39 AM
COMMISSIONER FISHER brought attention to slide 6, which lists
core initiatives he identified as being largely driven by the
impact on the budget. The first initiative is personnel costs,
which include health care, wages, and productivity. He related
that in the past, he has had some success in increasing
productivity, and he stated his intent to take a leadership role
in that function across the administration.
9:31:50 AM
COMMISSIONER FISHER, in response to Chair Lynn, gave his
personal history. He said he was an attorney at law, with a
focus on mergers and acquisitions and contract law, primarily in
the telecommunications industry. He relayed that in some of his
former positions he focused on initiatives to improve the
delivery of services at a reduced cost, and he stated that he is
looking forward to doing the same in the Department of
Administration.
9:34:09 AM
COMMISSIONER FISHER returned to slide 6 of the PowerPoint. He
said the unfunded liability will continue to be a priority, and
he said he thinks there are ways to reduce health care costs
further. He stated that the State of Alaska needs to continue
to drive down the cost of procurement. Currently the cost of
procurement is $280 million. He said the department would like
to improve information technology (IT), as well as the
management of space utilization. He said he would touch again
on the aforementioned points later within the overview.
9:34:57 AM
COMMISSIONER FISHER directed attention to slide 7, which shows
in a graph how the cost of health insurance benefit credit has
risen over the last ten years. He offered his understanding
that the prior administration was focused on this issue and was
able to reduce the cost in the last [couple] years.
CHAIR LYNN noted that there was a considerable jump in costs in
FY 11, and he questioned what the cause may have been.
COMMISSIONER FISHER responded that there was a change in the
third-party administrator at that time.
9:35:39 AM
REPRESENTATIVE KREISS-TOMKINS asked how Alaska's health care
costs compare to the national baseline cost.
COMMISSIONER FISHER answered that he does not have that
information, but the reduction in costs was driven by a couple
primary factors. One is that Alaska expanded its network, thus
gaining access to a better network of doctors at a lower cost.
He estimated that change has generated approximately $50,000 in
savings. Notwithstanding that, Alaska continues to have fairly
expensive health care. He said the administration is examining
techniques that it could employ as one of the larger health care
providers to bring more savings to the state.
9:37:06 AM
COMMISSIONER FISHER moved on to slide 8, which lists bargaining
contracts through DOPLR. Under ["Contracts That Expire on June
30, 2014"], he noted that the Marine Engineers' Beneficial
Association (MEBA) and Masters, Mates and Pilots (MMP) have not
been finalized; therefore they would still exist. From those
contracts listed [under "Contracts That Expire on June 30,
2015"], he noted that Public Employees, Local 71 (LTC) and the
Teachers' Education Association of Mt. Edgecumbe (TEAME) are two
contracts that DOA will be negotiating in the coming year. He
said the department has a tentative agreement with the Alaska
Correctional Officers Association. He said the contracts will
be important in the process of looking for savings and managing
labor challenges.
9:38:12 AM
COMMISSIONER FISHER said slide 9 shows a projected "bubble"
increase in the number of retirees over the next 70 years, which
he explained is driven primarily by the number of retirees that
will be "hitting the system." He said the graph emphasizes the
urgent need to reduce costs as quickly as possible.
Commissioner Fisher directed attention to slide 10, and he
reviewed that the legislature had approved a lump-sum $3 billion
payment into the Public Employees Retirement System (PERS) and
the Teachers Retirement System (TRS) to help drive down the
unfunded liability. Currently, he said, $2 billion of that has
been paid, and he offered his understanding that the last $1
billion would be paid shortly. He said the payment has changed
the trajectory in terms of the amount of contribution the state
is required to make, approximately $250,000 a year; however,
that number is still "dramatic and substantial."
COMMISSIONER FISHER showed slide 11, regarding multi-department
contracts awarded by the Division of General Services (DGS). He
explained that the contracts save the state almost $60 million.
He turned to slide 12, which shows the Integrated Resource
Information System (IRIS) that allows DOA to manage purchasing
across the state to validate and ensure it is complying with the
large contracts and getting the savings it expects. He
indicated that IRIS would be incorporated into the Division of
Finance & Procurement by the summer of 2015, and into Human
Resources and Payroll about a year later.
9:41:00 AM
COMMISSIONER FISHER directed attention to slide 13, which
outlines Enterprise Technology Services (ETS) and Information
Technology (IT) cost issues. He explained that currently a
portion of the IT function is centralized in ETS. For example,
the administration spends approximately $218 million on IT
functions, and about $38 million of that is within ETS. The
department is currently working through proposals - some of them
from the legislature - to determine how to improve IT services.
He said that will come from both strengthening the
centralization function while leaving some flexibility within
the organizations to ensure that their services are needed.
9:42:29 AM
COMMISSIONER FISHER, in response to Representative Kreiss-
Tomkins, said he would be taking a leading role in the
determination, because he has worked around technology enough to
have an understanding of the issues surrounding it. Further, he
said he intends to "leverage capabilities" throughout the
organization. He stated his intent to bring together many
people to corroborate and come up with a valuable solution. In
response to a follow-up question, he confirmed that he has given
thought to a centralized function, and the department is
considering whether it would be appropriate to have a cabinet-
level position to serve that function. He stated that he thinks
a centralization function is necessary in order to provide a
framework and reduce costs; however, he said there would be
areas where the expertise should remain in certain departments
that know their own needs. He said DOA is under obligation to
make a recommendation to the legislature, and he estimated that
it would have the information ready within a month.
9:46:18 AM
REPRESENTATIVE VAZQUEZ brought up two issues: First, she noted
that when she worked for the commissioner of the Department of
Health and Social Services (DHSS), a survey conducted by IT
showed that the Division of Senior & Disability Services used 32
databases. She suggested that it may be fruitful for DOA to
investigate and consolidate in that area. Second, she mentioned
the Medicaid system and said it would be interesting to find out
why two contractors have failed in the last 15 years.
9:48:27 AM
COMMISSIONER FISHER, in response to Representative Vazquez,
confirmed that the "FY 13" shown on slide 11 was a typographical
error that should instead read "FY 14." In response to another
question related to slide 7, he said the State of Alaska has
done better than the national average in terms of increases;
however, "as an absolute dollar level," the State of Alaska is
still higher than the Lower 48. He said he does not know how
the State of Alaska's increases or absolute numbers compare to
other insurers in the state, but said he would look into that.
He said personal experience with other employers in Alaska
indicates that "these numbers actually look pretty good - for
Alaska." He said the State of Alaska has a problem with the
cost of health care [benefits], and that is one area where
improvement can be made.
COMMISSIONER FISHER, in response to Representative Vazquez,
acknowledged that security is a huge issue; it is challenging to
balance the need for security with the need for access and
flexibility. He said DOA is currently performing a review, and
he does not have any recommendations that vary greatly from what
is already being done.
REPRESENTATIVE VAZQUEZ asked if there is any way DOA could
coordinate with other state governments in terms of security
practices.
COMMISSINER FISHER responded that that is a good suggestion.
REPRESENTATIVE VAZQUEZ stated that although she realizes there
needs to be a central operation, she has always appreciated the
availability of IT assistance that could arrive within five
minutes to solve a problem.
9:53:19 AM
COMMISSIONER FISHER concurred. He gave an example of having
shared datacenters as a way to save money and have a more secure
system.
REPRESENTATIVE VAZQUEZ indicated that IT staff, in general,
serve the state well.
9:55:12 AM
REPRESENTATIVE KELLER remarked that the database struggle has
been going on for a long time. He said the concern over
security has slowed down the centralization of databases. He
said the Constitution of the State of Alaska guarantees the
right to privacy, and it is the job of the legislature to
determine how that right will be upheld in statute.
9:56:41 AM
COMMISSIONER FISHER directed attention to slide 14 of the
PowerPoint, which addresses universal space standards (USS) that
DGS has been adopting in order to reduce the footprint of each
worker. He reported that the department is "putting a little
pause" on its efforts, because it has received "a fair amount of
pushback from the represented workforce." He indicated that DOA
wants to engage those people to gain their input because it does
not want to spend money on a new system and discover it does not
work. He said one of the strategic objectives of DOA is to be
more efficient in how it manages and leases its spaces.
COMMISSIONER FISHER turned to slide 15, which shows the results
of the surveys DOA regularly conducts to determine the customer
service ratings of various elements of service it renders within
certain divisions.
CHAIR LYNN expressed his appreciation for the overview, and
asked that Commissioner Fisher follow up on the concerns
expressed by the committee.
9:59:18 AM
ADJOURNMENT
There being no further business before the committee, the House
State Affairs Standing Committee meeting was adjourned at 9:59
a.m.
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