02/01/2011 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Executive Order 115 | |
| SB59 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | SB 59 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
February 1, 2011
1:32 p.m.
MEMBERS PRESENT
Senator Dennis Egan, Chair
Senator Joe Paskvan, Vice Chair
Senator Linda Menard
Senator Bettye Davis
Senator Cathy Giessel
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
EXECUTIVE ORDER 115: REALIGNING THE OVERSIGHT AUTHORITY OF THE
ALASKA AEROSPACE CORPORATION
- EXECUTIVE ORDER 115 ADVANCED
SENATE BILL NO. 59
"An Act extending the termination date of the Board of Dental
Examiners; and providing for an effective date."
- MOVED CSSB 59(L&C) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 59
SHORT TITLE: EXTEND BOARD OF DENTAL EXAMINERS
SPONSOR(s): LABOR & COMMERCE
01/21/11 (S) READ THE FIRST TIME - REFERRALS
01/21/11 (S) L&C, FIN
02/01/11 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
DANA OWEN
Staff to the Senate Labor and Commerce Committee
Alaska State Legislature
Juneau, AK
POSITION STATEMENT: Commented on EO 115 and SB 59.
SUSAN BELL, Commissioner
Department of Commerce, Community and Economic Development
(DCCED)
Juneau, AK
POSITION STATEMENT: Supported EO 115 and SB 59.
DALE NASH, CEO
Alaska Aerospace Corporation
Kodiak, AK
POSITION STATEMENT: Supported EO 115.
CRAIG CAMPBELL, President and COO
Alaska Aerospace Corporation
Kodiak, AK
POSITION STATEMENT: Supported EO 115.
MCHUGH PIERRE, Deputy Commissioner
Department of Military & Veterans Affairs (DMVA)
Anchorage, AK
POSITION STATEMENT: Supported EO 115.
DAVID LOGAN, Chair
Legislative Committee
Alaska Dental Society
Anchorage, AK
POSITION STATEMENT: Supported SB 59.
PAT DAVIDSON, Legislative Auditor
Division of Legislative Audit
Alaska State Legislature
POSITION STATEMENT: Supported SB 59.
DON HABEGAR, Director
Division of Corporations, Business and Professional Licensing,
Department of Commerce, Community and Economic Development
(DCCED)
Juneau, AK
POSITION STATEMENT: Answered questions regarding SB 59.
ACTION NARRATIVE
1:32:03 PM
CHAIR DENNIS EGAN called the Senate Labor and Commerce Standing
Committee meeting to order at 1:32 p.m. Present at the call to
order were Senators Giessel, Paskvan, and Chair Egan.
CHAIR EGAN reviewed committee procedures.
1:33:18 PM
^Executive Order 115
Executive Order 115: Realigning The Oversight
Authority Of The Alaska Aerospace Corporation
CHAIR EGAN announced the first order of business to be EO 115.
DANA OWEN, staff to the Senate Labor and Commerce Committee,
said that executive orders are an "odd duck for the
legislature." He explained that typically if the committee does
nothing at all, an executive order (EO) will go into effect 60
days after the governor introduced it. In the past, it has been
typical for committees like this to write a memo stating what
happened in the meeting to the Senate Secretary, but this year
for more structure a committee report form is being used. The
major difference from other committee reports is that there is
no place for individual recommendations, but rather a place for
one committee recommendation and it has no neutral option. Any
disapproval would require a special concurrent resolution to be
drafted in order to forward the EO.
MR. OWEN said the issue of Aerospace authority came up in their
overview of the Department of Commerce, Community and Economic
Development and it seemed that at least one of the committees
from the Senate should review this EO. It has also been assigned
to the State Affairs Committee. Unlike a bill, executive orders
don't go to committees sequentially; both committees receive
them at the same time.
1:36:14 PM
SUSAN BELL, Commissioner, Department of Commerce, Community and
Economic Development (DCCED), said the department supports the
development and growth of the Alaska Aerospace Corporation and
this industry in this state. They are very proud of the growth
and successes Alaska Aerospace has had since its inception in
1995 including the very successful Air Force launch this last
November.
1:37:06 PM
SENATOR DAVIS joined the committee.
COMMISSIONER BELL said her department looks at economic and
community benefits that an entity like the corporation can bring
to the state, and recent independent studies from Northern
Economics and McDowell Group have found that Alaska Aerospace's
contributions to the economy totaled nearly $30 million in
direct and indirect spending, 235 jobs and a payroll of more
than $12 million. That same year more than 250 independent
Alaskan firms provided goods and services to the corporation,
and at many times when the tourism industry is winding down.
COMMISSIONER BELL said that Alaska Aerospace diversifies the
state's economy with high-tech high-wage jobs. It's a
particularly unique market in terms of serving both commercial
and military customers. She shares the opinion in the EO that
the Alaska Aerospace Corporation needs to be positioned in the
Department of Military and Veteran's Affairs (DMVA) where it's
most likely to succeed and achieve its core mission. The DMVA
has the ability to help provide access to federal military
contracts for both sustainable funding and future launches. And
while the opportunities for commercial launches won't be
diminished, this will help strengthen the organization so its
success will be more assured.
SENATOR PASKVAN asked what proportions will be military and
commercial in the short term. He asked if that is the impetus
behind EO 115.
COMMISSIONER BELL answered she has learned that the military
needs to be a core element of Alaska Aerospace not only for
launches but for the sustainability funding.
1:41:10 PM
DALE NASH, CEO, Alaska Aerospace Corporation, said he had been
with the corporation for four years and CEO for the last three.
He supported the realignment in EO 115. He said last night he
lost his president and chief operating officer, General Tom Case
who left to become chancellor of the University of Alaska
Anchorage, but he has the good fortune to have been able to talk
former general and lieutenant governor, Craig Campbell, into
taking that position.
1:42:03 PM
SENATOR MENARD joined the committee.
MR. NASH said one of the key things he saw work extremely well
on the space shuttle program when he worked for United Space
Alliance, a company that builds the solid rocket boosters, was
to have someone with aerospace expertise in one of the top two
positions and the other as an astronaut. He used that model in
bringing General Case, and now General Campbell on, mostly
because Alaska Aerospace's customer is primarily the Department
of Defense, the Air Force and NASA.
1:44:56 PM
MR. NASH explained that he deals with Lockheed, Boeing,
Northrop-Grumman, and ATK for the commercial launches, and they
use contracts and accounting methods that are similar to the
Department of Defense's. All of their 15 launches to date have
been federal government in one form or another. The last one for
the Space Test Program, S-26, was the most complicated launch
that the Air Force has put up in 20 years. It had 7 satellites
and 16 experiments from NASA and the Air Force, and at least 3
University satellites.
He said the corporation has done well under the Department of
Commerce, Community and Economic Development, "but you really
need to look to your customers like they want you to look." He
explained that West Coast launches are polar launches going
around the poles on the Earth. East Coast launches go on an
equatorial heading from west to east, and those happen in
Virginia and Florida. Sometimes Alaska Aerospace teams with
California, and being administratively under DMVA facilitates
their relationship with them and their other customers.
Alaska Aerospace has an MOA with Space Florida whose National
Guard helps operate their range that he hopes to duplicate with
the Alaska National Guard. They will control the rocket and make
sure it flies safely and download all the data. Alaska Aerospace
needs to look like a national range, he said. Their customers
consider four ranges: Cape Canaveral/Kennedy Space Center,
NASA's Wallops Highland Virginia on the East Coast, Vandenberg
on the West Coast - and Alaska Aerospace. They want another
backup on the West Coast, which is a key part of the
infrastructure, and Kodiak is rapidly becoming recognized as
that. Alaska Aerospace wants to fit into that niche - remaining
state-owned and controlled, but able to tap into resources and
assets that can be loaned and borrowed back and forth across the
national space industry.
SENATOR MENARD asked if the goals and missions would remain the
same.
MR. NASH answered yes. He explained that national space policy
continues to be updated in the Commercial Space Act from the
late 90s before cell phones came along when there were a lot of
plans for launching a lot of commercial satellite
constellations. But because cellular technology made it possible
to switch anywhere, and fiber optic connected everyone, that
market disappeared. However, the market Alaska Aerospace
Corporation continues to service and pursue is primarily
military and federal government. It is not the thousands of
satellites they all expected, but it is still a very good
market. They have not changed their goals or objectives; it's
the nature of the business that has changed.
1:52:58 PM
SENATOR PASKVAN asked if Alaska is sending the appropriate
message to Alaska's customers by moving the Alaska Aerospace to
the DMVA.
MR. NASH answered yes; they know how to launch military and NASA
payloads. They are viewed in very high regard.
1:54:31 PM
SENATOR MENARD asked if this move would help increase economic
development.
MR. NASH answered there are no guarantees, but he thought it
would. The DMVA fits with their model better and opens up more
markets for them. He said their next launch is tentatively in
the first week of May, and he invited the committee to come out
and watch it.
CHAIR EGAN welcomed former Lieutenant Governor Craig Campbell to
comment.
CRAIG CAMPBELL, President and COO of the Alaska Aerospace
Corporation, said his position will become effective on February
1 and that this is a great executive order. This corporation is
on the cusp of being able to do some really good development in
the aerospace industry in Alaska. Just being aligned properly
will send the right message to their federal partners.
1:57:41 PM
MCHUGH PIERRE, Deputy Commissioner, Department of Military &
Veterans Affairs (DMVA), said there is a lot of enthusiasm in
this room for this specific corporation and for the mission, and
rightfully so. Four states, including Alaska, participate in
rocket launches, but Alaska has a unique polar orbit access that
only competing nations have. No other state has this
opportunity. "We support it and we won't let you down," he said.
1:59:17 PM
SENATOR DAVIS asked how much money the state has contributed so
far.
COMMISSIONER BELL answered the initial funding was $15 million
and there is a $4-million request in the FY12 budget. Part of
that is signaling to this corporation that it's important for
the state "to keep the doors open, the lights on." She reported
that economic returns have been modest.
SENATOR DAVIS asked how long this program has been around.
COMMISSIONER BELL answered about 15 years.
SENATOR DAVIS asked how the state has benefited financially.
COMMISSIONER BELL answered through June 30, 2010 a total of
nearly $300 million has been generated by the Kodiak launch
complex; Alaska funded $30.5 million with federal capital
investments of $141 million. Third party studies found more than
235 jobs resulting from this as well as 260 firms that provided
goods and services to the corporation - not only in the Kodiak
area but the greater South-central area, as well.
2:03:55 PM
SENATOR PASKVAN moved to advance EO 115 from committee with
unanimous consent. There were no objections and it was so
ordered.
SB 59-EXTEND BOARD OF DENTAL EXAMINERS
2:04:59 PM
CHAIR EGAN announced SB 59 to be up for consideration.
2:05:48 PM
DANA OWEN, staff to the Senate Labor and Commerce Committee,
sponsor of SB 59, said the Dental Society suggested 19 pages
worth changes, so they thought it would be more expeditious to
split the question in two. This bill extends the board for
another five years, a number "that was pulled out of the air."
He was not aware of the audit that had been done and it had
recommended eight years instead of five. He said it would be
highly recommended to accept the auditor's suggestion to extend
it to eight years.
SENATOR MENARD commented that she appreciates the auditor's
recommendation and was in favor of extending the Board of Dental
Examiners for eight years.
2:07:51 PM
DAVID LOGAN, Chair, Legislative Alaska Dental Society, supported
SB 59. He had no position on the length of time.
PAT DAVIDSON, Legislative Auditor, said the board is operating
in an efficient manner. The audit had one recommendation to the
division of timely investigation of complaints coming in, but
the audit team did recommend an eight-year extension for the
board.
SENATOR PASKVAN asked if she made suggestions to the division or
had they made any responses to her as to how they were intending
on handling the issue of timely response to complaints.
MS. DAVIDSON answered they looked at is how their case
management system worked. She explained that when there is a big
caseload, it's important to have a case management system that
will have a "tickler file" associated with it. Their current
data base didn't have that. They had been looking at replacing
the system, but she didn't know if it had been purchased yet.
She said they looked at six complaints and five cases for the
Board of Dental Examiners; three of the six complaints and one
out of five cases were inactive for more than six months. They
need to be a little more up to speed where those individual
cases are and data management would help in that area.
SENATOR PASKVAN said he had heard comments from dentists about
an internal self policing capacity.
MS. DAVIDSON replied that investigation and complaints are not a
board activity; they are a divisional activity. The board sit as
a quasi-judicial arm. So the investigations are handled by the
division that reports to the board. The board decides what
action to take. Keeping on top of your own caseload is
important, but data management is needed.
SENATOR GIESSEL said she had been involved with professional
licensing board and that was issue with them as well. She
thought they would get data management program a couple of years
ago, and asked why. Is it an appropriation issue?
MS. DAVIDSON agreed that the department should answer, but added
that this is a continuing issue with many boards and
commissions.
DON HABEGAR, Director, Division of Corporations, Business and
Professional Licensing, Department of Commerce, Community and
Economic Development (DCCED), replied that the system (GL
Suites) has been purchased, but they are still in the learning
phase.
SENATOR PASKVAN asked him to more fully explain what goes on
with complaints.
MR. HABERGER replied that investigations by statute are under
the department's purview. They will capture the complaint that
comes from the public; the investigation team will look at it
and decide whether it merits further investigation. If it does
and violates licensing laws, they will develop a case and at
some point in time they will take a recommendation to the board.
But before that they may have a dentist on the board review the
case and make his recommendation.
COMMISSIONER BELL said 701 complaints were made for the 40
professions the division monitors. That resulted in a little
over 500 actions and over 500 went to the next stage. About 350
resulted in some disciplinary action that could have been a
fine, continuing education, or monitoring auditing.
SENATOR PASKVAN asked the backlog within the specific area of
dentistry.
MR. HABEGAR said he couldn't answer specifically; the division
has taken a number of proactive measures. When he joined the
division it had a new chief of investigations, and knowing the
audit reports have a recurring theme, they are looking for ways
to manage that.
2:22:29 PM
SENATOR MENARD moved to amend SB 59 to extend the board from
2016 to 2019. There were no objections and it was so ordered.
SENATOR MENARD moved to advance CSSB 59 (L&C) from committee
with individual recommendations and attached fiscal note(s).
There were no objections and it was so ordered.
2:24:55 PM
Seeing no further business to come before the committee, Chair
Egan adjourned the meeting at 2:24 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 59 Sponsor Statement.PDF |
SL&C 2/1/2011 1:30:00 PM |
SB 59 |
| SB059-CCED-CBPL-01-28-11.pdf |
SL&C 2/1/2011 1:30:00 PM |
SB 59 |