03/09/2006 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB274 | |
| SB307 | |
| HB393 | |
| Confirmation Hearings: | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 307 | TELECONFERENCED | |
| + | HB 393 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | HB 274 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
March 9, 2006
1:32 p.m.
MEMBERS PRESENT
Senator Con Bunde, Chair
Senator Ralph Seekins, Vice Chair
Senator Ben Stevens
Senator Johnny Ellis
Senator Bettye Davis
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 274(FIN)
"An Act relating to the practice of accounting; and providing
for an effective date."
MOVED CSSSHB 274(FIN) FROM COMMITTEE
SENATE BILL NO. 307
"An Act relating to a fee provided for in the rental agreement
for late payment of rent under the Uniform Residential Landlord
and Tenant Act."
HEARD AND HELD
CS FOR HOUSE BILL NO. 393(HES)
"An Act requiring that certain health care insurance plans
provide coverage for the costs of colorectal cancer screening
examinations and laboratory tests; and providing for an
effective date."
HEARD AND HELD
CONFIRMATION HEARINGS:
Alcohol Beverage Control Board - Billy G. Andrews, Gail M. Niemi
State Board of Registration for Architects, Engineers and Land
Surveyors - Charles A. Leet
Board of Veterinary Examiners - Steve Torrence
CONFIRMATIONS ADVANCED
PREVIOUS COMMITTEE ACTION
BILL: HB 274
SHORT TITLE: PUBLIC ACCOUNTANTS
SPONSOR(s): REPRESENTATIVE(s) HAWKER
04/18/05 (H) READ THE FIRST TIME - REFERRALS
04/18/05 (H) L&C, FIN
01/11/06 (H) SPONSOR SUBSTITUTE INTRODUCED
01/11/06 (H) READ THE FIRST TIME - REFERRALS
01/11/06 (H) L&C, FIN
01/25/06 (H) L&C AT 3:15 PM CAPITOL 17
01/25/06 (H) Heard & Held
01/25/06 (H) MINUTE(L&C)
02/01/06 (H) L&C AT 3:15 PM CAPITOL 17
02/01/06 (H) Moved CSHB 274(L&C) Out of Committee
02/01/06 (H) MINUTE(L&C)
02/03/06 (H) L&C RPT CS(L&C) 7DP
02/03/06 (H) DP: CRAWFORD, LYNN, KOTT, LEDOUX,
GUTTENBERG, ROKEBERG, ANDERSON
02/09/06 (H) FIN AT 1:30 PM HOUSE FINANCE 519
02/09/06 (H) Moved CSHB 274(FIN) Out of Committee
02/09/06 (H) MINUTE(FIN)
02/10/06 (H) FIN RPT CS(FIN) 9DP 1NR
02/10/06 (H) DP: HAWKER, FOSTER, STOLTZE, KERTTULA,
JOULE, MOSES, WEYHRAUCH, HOLM, MEYER;
02/10/06 (H) NR: KELLY
02/22/06 (H) TRANSMITTED TO (S)
02/22/06 (H) VERSION: CSSSHB 274(FIN)
02/23/06 (S) READ THE FIRST TIME - REFERRALS
02/23/06 (S) L&C, FIN
03/07/06 (S) L&C AT 1:30 PM BELTZ 211
03/07/06 (S) Scheduled But Not Heard
03/09/06 (S) L&C AT 1:30 PM BELTZ 211
BILL: SB 307
SHORT TITLE: LANDLORD REMEDIES; LATE FEE
SPONSOR(s): LABOR & COMMERCE
02/23/06 (S) READ THE FIRST TIME - REFERRALS
02/23/06 (S) L&C, JUD
03/09/06 (S) L&C AT 1:30 PM BELTZ 211
BILL: HB 393
SHORT TITLE: INSURANCE FOR COLORECTAL CANCER SCREENING
SPONSOR(s): REPRESENTATIVE(s) ANDERSON
01/25/06 (H) READ THE FIRST TIME - REFERRALS
01/25/06 (H) L&C, HES
02/03/06 (H) L&C AT 4:15 PM CAPITOL 17
02/03/06 (H) -- Meeting Canceled --
02/06/06 (H) L&C AT 3:15 PM CAPITOL 17
02/06/06 (H) Moved CSHB 393(L&C) Out of Committee
02/06/06 (H) MINUTE(L&C)
02/08/06 (H) L&C RPT CS(L&C) 5DP 1NR 1AM
02/08/06 (H) DP: CRAWFORD, LYNN, LEDOUX, GUTTENBERG,
ANDERSON;
02/08/06 (H) NR: KOTT;
02/08/06 (H) AM: ROKEBERG
02/14/06 (H) HES AT 3:00 PM CAPITOL 106
02/14/06 (H) Moved CSHB 393(HES) Out of Committee
02/14/06 (H) MINUTE(HES)
02/17/06 (H) HES RPT CS(HES) 6DP
02/17/06 (H) DP: GARDNER, CISSNA, ANDERSON, GATTO,
SEATON, WILSON
02/22/06 (H) TRANSMITTED TO (S)
02/22/06 (H) VERSION: CSHB 393(HES)
02/23/06 (S) READ THE FIRST TIME - REFERRALS
02/23/06 (S) L&C, HES
03/09/06 (S) L&C AT 1:30 PM BELTZ 211
WITNESS REGISTER
REPRESENTATIVE MIKE HAWKER
State Capitol
Juneau AK
POSITION STATEMENT: Sponsor of HB 274.
LISA ROGERS
Alaska Society of CPAs
Alaska Offnet
POSITION STATEMENT: Supported HB 274.
DAN KANADY, CPA
Wasilla AK
POSITION STATEMENT: Supported HB 274.
JANE ALBERTS
Staff to Senator Bunde
State Capitol
Juneau AK
POSITION STATEMENT: Introduced SB 307 for the sponsor.
BOB MAIER
Alaska Manufactured Housing Association
Anchorage AK
POSITION STATEMENT: Supported SB 307.
GEORGE CAMP, Manager
Diamond State Properties
Anchorage AK
POSITION STATEMENT: Supported SB 307.
CLAYTON WALKER
Alaska Law Offices
Anchorage AK
POSITION STATEMENT: Supported SB 307.
WAYNE STEVENS, President and CEO
Alaska State Chamber of Commerce
Juneau AK
POSITION STATEMENT: Supported SB 307.
CRYSTAL NOVOTNY
Staff to Representative Tom Anderson
State Capitol
Juneau AK
POSITION STATEMENT: Introduced HB 393 for the sponsor.
MARIE DARLIN
Capitol City Task Force
AARP
Juneau AK
POSITION STATEMENT: Supported HB 393.
EMILY NENON, Director
Alaska Government Relations
American Cancer Society
Anchorage AK
POSITION STATEMENT: Supported HB 393.
MIKE FORD
Alaska Native Health Board
Juneau AK
POSITION STATEMENT: Supported HB 393.
RICK URION
Juneau AK
POSITION STATEMENT: Supported HB 393.
DR. FRANK SACCO, General Surgeon
Alaska Native Medical Center
Anchorage AK
POSITION STATEMENT: Supported HB 393.
CARE TUKS
Wasilla AK
POSITION STATEMENT: Supported HB 393.
ACTION NARRATIVE
CHAIR CON BUNDE called the Senate Labor and Commerce Standing
Committee meeting to order at 1:32:55 PM. All members were
present at the call to order.
CSSSHB 274(FIN)-PUBLIC ACCOUNTANTS
CHAIR CON BUNDE announced CSSSHB 274(FIN) to be up for
consideration.
REPRESENTATIVE MIKE HAWKER, sponsor of HB 274, said that this
legislation is the result of a project that was begun five years
ago by the Alaska Society of Certified Public Accountants and
the Alaska State Board of Public Accountancy to modernize
Alaska's public accountancy statutes. It would move them toward
a national standard embodied in the Uniform Accountancy Act,
which is draft legislation offered by the American Institute of
Certified Public Accountants. This draft act seeks to bring
consistency and equivalency amongst different jurisdictions for
both education and training requirements to facilitate the
practice of accountancy in a consistent manner among states.
Alaska's CPA statutes were largely drafted around 1962 and have
had very little updating since then.
The vast majority of the changes in HB 274 are ministerial,
conforming language that modernizes the state's terms. But it
has a couple of very substantial improvements in moving them
toward the national standards. It increases oversight of
accountants, brought on by issues such as Enron and a few other
places. This bill would make peer reviews that are currently
optional, mandatory.
Further, HB 274 clearly defines the requirements for allowing
the practice of out-of-state firms in the state. They are
currently a very vague set of provisions. It also conforms
education requirements to that of the national standards, which
reduces the years of experience required. He pointed out that
the bill would require that CPAs have a degree in accounting
where previously they could have had a degree in anything - as
long as they could pass the test.
REPRESENTATIVE HAWKER said this bill is supported by the Alaska
Society of CPAs, Alaska State Board of Accountancy and the
accounting industry in general.
CHAIR BUNDE said the Alaska Society of Independent Accountants
had a question and asked if it still had concerns.
REPRESENTATIVE HAWKER replied that those concerns were addressed
in House Finance Committee and the Society now endorses the
bill.
CHAIR BUNDE asked how someone files a grievance under this bill.
REPRESENTATIVE HAWKER replied a person would appeal to the
Alaska State Board of Public Accountancy, which has the
regulatory and discipline authority for recognized
practitioners.
1:38:29 PM
LISA ROGERS, Alaska Society of CPAs, said she has been licensed
to practice certified public accounting in Alaska since 1989 and
supported HB 274. She has been working on regulatory and
legislative issues facing the profession for at least five
years. HB 274 provides a much needed update and revision to
those statutes. She encouraged the committee to support this
bill.
DAN KANADY, Wasilla CPA, supported HB 274 because it brings the
board's requirements closer to national standards. However, he
thought reducing the experience requirement from two years to
one year would allow easier entry into the CPA profession. The
offsetting strengths of the bill are the 150-semester hours
education in accounting with an accounting degree and the peer
review examination.
1:43:56 PM
CHAIR BUNDE asked if people who are licensed CPAs but didn't
have a degree would be grandfathered in under their old license.
REPRESENTATIVE HAWKER replied yes.
CHAIR BUNDE asked if anyone opposed this bill.
REPRESENTATIVE HAWKER replied no.
SENATOR RALPH SEEKINS moved to report CSSS HB 274(FIN) from
committee with individual recommendations and attached fiscal
note. Senators Seekins, Ben Stevens, Ellis, Davis and Chair
Bunde voted yea; and it moved from committee.
SB 307-LANDLORD REMEDIES; LATE FEE
CHAIR CON BUNDE announced SB 307 to be up for consideration.
JANE ALBERTS, staff to Senator Bunde, said that SB 307 addresses
a problem from the 2002 Superior Court ruling on how landlords
collect late fees. The court ruled two separate notices were
required. This has caused problems. SB 307 returns the
notification process back to what it was prior to the 2002
Superior Court Ruling. It allows landlords to include the late
fee on the same seven-day Notice to Quit for nonpayment of rent.
She explained that the 2002 ruling required a seven-day Notice
to Quit for nonpayment of rent and a 10-day Notice to Quit for
nonpayment of the late fee. This meant that two separate notices
had to be sent to the tenant. Having two different notices with
different due dates and different amounts has caused problems
and many have ended up being settled in court.
BOB MAIER, Alaska Manufactured Housing Association, supported
this legislation. He explained that they are asking for the
notice and late fee to be included on the Notice to Quit to cut
down on misunderstandings. Rent is usually due on the first of
the month and generally there is a 5 to 10 day grace period
before a late fee is assessed. After that time a Notice to Quit
is hung. He supported having the dollar amount of the rent and
the dollar amount of the late fee to be included on the seven-
day Notice to Quit to make communication clearer between
landlord and tenant. The Building Owners and Managers
Association supports SB 307. It has over 12,000 members
worldwide with 108 members in Alaska.
CHAIR BUNDE asked if this would make it easier to evict renters.
MR. MAIER replied no; it is just a simplification for the
landlords, the tenants and the courts.
CHAIR BUNDE asked if an eviction notice is served and protested,
does it have to be settled in court.
MR. MAIER replied that any Forced Entry and Detainer (FED) is
filed with the District Court where judges have a wide purview
to make decisions.
1:50:33 PM
GEORGE CAMP, Manager, Diamond State Properties, said Diamond
Properties is a 522 mobile home park in Anchorage. He sends out
an average of 20 Notices to Quit per month on the rent issue
alone. He supported SB 307 because it would cut down on
administrative costs by only requiring one notice. It would also
clarify the law for everyone concerned.
1:51:22 PM
ED SNIFFEN, Assistant Attorney General, Division of Consumer
Protection, said the department doesn't take a position on this
bill but he wanted to point out some of the consequences SB 307
would have. Before the Nakamoto case in 2002, there was an
accepted practice that was illegal and has always been illegal.
The Nakamoto case recognized it as illegal under the current
law. Mr. Sniffen explained:
It was illegal because we have two statutes, one that
requires a 10-day Notice to Quit for failure to pay
late fees and other surcharges and another statue that
requires a seven-day notice for failure to pay rent.
Rent is treated completely differently from late fees
and surcharges and for a reason. Under the statute, if
you fail to pay rent, there are specific review
requirements the court has to go through to decide if
you didn't pay because you didn't get your notice -
maybe there were offsets, maybe you had to perform
repairs, maybe you had to pay utilities - a variety of
reasons. And the court has directed, by statute, to
look at those issues when deciding whether or not to
allow an eviction for failure to pay rent.
If you fail to pay a late fee, however, there is
another notice required. And the failure to pay a late
fee has to rise to the level of being a material
breach of the contract before you can evict a tenant
and that's the current state of the law. So, by
combining these two concepts into one notice, you are
essentially allowing landlords to evict tenants for
failing to pay late fees. When under the current
system, you can only do that for failing to pay rent
and then you could proceed to evict for failure to pay
late fees, but only if you show that the late fee
failure was a material violation of the lease
agreement.
MR. SNIFFEN said some subtle consequences would have impacts on
tenants. One of the ways landlords could currently get around
this is by just issuing a 10-day Notice to Quit. Then the late
fees can be included with the late rent. It would be a 10-day
notice, not a seven-day notice.
1:54:39 PM
CLAYTON WALKER, Alaska Law Offices, Anchorage, said he has
represented a lot of landlords. He explained that the statute
doesn't say anything about the 10-day notice being for late
fees; it's simply for any other material violation of a lease.
Also, the tenant is only allowed one opportunity in a six-month
period to remedy a 10-day violation. So, if he misses making a
second late payment, he has no right to remedy that
circumstance. He elaborated:
So, having a landlord use a 10-day notice rather than
a seven-day notice is harmful for consumers. The
seven-day notice, in contrast, that tenant could be
late every month, get the seven-day notice; pay within
the seven days and they've remedied. They have a right
to stay in the premises. Allowing late fees to be
included with the rent on that kind of a notice would
allow them to remedy that indefinitely, no matter how
many times they were late. In contrast, a 10-day
notice, they would be out the second time they failed
to within six months.
MR. WALKER informed them that the Nakamoto Superior Court case
has not been consistently applied by the courts. Some of the
courts feel that the decision was wrongly decided and there is a
split within district court on how to handle the issue. Passing
this statute would create uniformity among the district courts
in how they handle the issue, which would simplify things for
both the tenants and the landlords, both of whom have problems
understanding the amount that needs to be paid.
1:57:01 PM
CHAIR BUNDE asked if this bill would encourage people to be
chronically late. He asked if under the old system, a person was
late twice, he could be evicted.
MR. WALKER replied that was his understanding.
CHAIR BUNDE asked if under existing law with the 10-day notice
for a late fee, could a person get the chance to cure that once
every six months. So being late twice would be cause for
eviction.
MR. WALKER replied that was correct as long as the court thought
the late fee non-payment was a material breach of the lease. If
the late fee was $50 and the rent was $1,000, he might decide to
let them stay and the landlord would have to wait until the late
fees accumulate to a much larger number that a judge would find
as material.
1:58:52 PM
WAYNE STEVENS, President and CEO, Alaska State Chamber of
Commerce, supported SB 307 because it clarifies and simplifies
the process and is in the spirit of regulatory reform, which was
passed last year.
1:59:33 PM
CHAIR BUNDE announced the bill would be held for further work
with Mr. Sniffen.
CSHB 393(HES)-INSURANCE FOR COLORECTAL CANCER SCREENING
CHAIR CON BUNDE announced CSHB 393(HES) to be up for
consideration.
SENATOR JOHNNY ELLIS said he had concerns with the fiscal note.
CHAIR BUNDE responded that is one of the reasons he is going to
hold the bill for further explanation.
CRYSTAL NOVOTNY, staff to Representative Tom Anderson, sponsor,
read the sponsor statement to HB 393. Current Alaska state law
requires that health insurance policies cover screenings for
breast, cervical and prostate cancer. Colon cancer is the only
cancer with a recommended screening test available that is not
on this list.
Colorectal cancer is the second-leading cause of death in Alaska
and across the nation. An estimated 57,000 Americans died from
colon cancer in 2005. Alaska Natives have the highest rate of
colorectal cancer in the nation. Cancers that are caught through
colorectal screening have a 90 percent five-year survival rate.
The five-year survival rate is only 10 percent if the cancer is
not caught until symptoms appear. A colonoscopy is over 90
percent effective at detecting colon cancer and can remove
precancerous colon polyps, which prevents cancer from ever
developing.
Screening is cost effective. National studies confirm the cost
of these screenings spread across the insured population is
minimal and covering screenings also has the potential for long-
term savings by avoiding treatment costs. Colonoscopies are
required only once every 10 years starting at the age of 50.
Medicare picks up coverage for the full range of screenings
including colonoscopies when a person becomes Medicare-eligible.
This underscores the cost effectiveness covering for what most
people will be only two colonoscopies between the ages of 50 and
65. The Institute of Medicine reports that the death rate from
colon cancer could drop by up to 80 percent if a majority of
Americans were regularly screened. Eighteen other states
including Texas, Missouri and Nevada have already adopted
similar legislation requiring screening coverage.
2:05:07 PM
MARIE DARLIN, Capitol City Task Force, AARP, supported HB 393
saying it would save lives and health care costs.
2:05:55 PM
EMILY NENON, American Cancer Society, supported HB 393. She
related that this legislation would not get everyone in the
state covered, but it is a significant piece as the state
regulates about 25 percent of all insurance policies. The
American Cancer Society is working on the other pieces as well
and has gotten 70 percent of all the federal employee health
benefit plans and Medicare to include this coverage.
2:07:19 PM
MS. NENON discussed the cost of colon cancer screening and how
it reduces costs by actually preventing cancer. Treatment for
colon cancer costs $250,000 per year just for the drug, so
colonoscopies save money as well as lives.
2:10:53 PM
CHAIR BUNDE asked the cost of an uninsured colonoscopy.
MS. NENON replied about $2,500 in Anchorage.
SENATOR ELLIS asked if she had seen the fiscal notes for HB 393.
MS. NENON replied that she was concerned with the assumptions
that were made. When you look at the cost of adding the benefit,
you also have to look at the treatment savings, for instance.
2:12:24 PM
MIKE FORD, Alaska Native Health Board, supported HB 393. Alaska
Natives have the highest rate of colon cancer from other racial
groups. "So, whenever we can chip away at the problem, we would
like to do so."
He also commented that he wasn't certain the fiscal note
reflected the true fiscal effect of the bill. The current active
state employee plan covers colon screening, but it is different
for retirees.
2:13:29 PM
RICK URION, cancer survivor, said he is still undergoing
treatment. He is in the group of people who have a high rate of
survival because he had an early detection colonoscopy. The
screening that detected the cancer was within one year of the
previous colonoscopy.
2:14:47 PM
DR. FRANK SACCO, General Surgeon, Alaska Native Medical Center,
voiced support for HB 393. He remarked how colon cancer has
tremendous emotional and economic costs affects on a person who
develops it. He emphasized that this cancer can be decreased and
cured, unlike a lot of other cancers. It's frustrating for him
to see folks die needlessly.
2:16:35 PM
SENATOR SEEKINS asked what kind of screening Alaska Native
Medical Center provides for people.
DR. SACCO replied it provides two things - flexible
sigmoidoscopies for people of average risk and colonoscopies for
high-risk folks. Its screening rates are below the national
average.
2:18:02 PM
SENATOR SEEKINS asked him to explain the virtual colonoscopy
program.
DR. SACCO replied that it may be a way to get more folks
screened, but unfortunately it still requires a full bowel
preparation for the patient who would still get a tube inserted
that gets inflated with air. About 30 to 40 percent of the
patients will have something that warrants a colonoscopy. It's
not recommended for general screening.
2:19:22 PM
CHAIR BUNDE asked if this bill would impact his clients.
DR. SACCO replied that it would help. About 40 percent of his
patients have other some sort of coverage or private insurance.
He noted that over half his hospital's budget comes from what it
collects, not from the federal government. Collecting more means
it can provide more services.
CHAIR BUNDE asked why colon cancer is more prevalent in native
cultures.
DR. SACCO speculated diet, genetic and lifestyle issues. The
gene is more prevalent in Natives and their traditional diets
are low in fiber. Screening is the only proven way to detect
cancer and remove polyps that would prevent it from developing.
2:22:40 PM
CARE TUKS, Wasilla, related that she has survived 10 separate
bouts with cancer. She testified that screening and early
detection works. If it's detected early, thousands of lives
could be saved as well as thousands of dollars in prolonged
treatment.
CHAIR BUNDE said he would set this aside for a future date.
^CONFIRMATION HEARINGS:
CONFIRMATION HEARINGS
2:27:02 PM
CHAIR BUNDE announced that there were no objections to the
following names being forwarded to the full body for
confirmation.
^Alcohol Beverage Control Board
Billy G. Andrew and Gail M. Niemi from Juneau
^State Board of Registration for Architects, Engineers and Land
Surveyors
Charles A. Leet from Palmer
^Board of Veterinary Examiners
Steve Torrence from Juneau
CHAIR BUNDE adjourned the meeting at 2:28:45 PM.
| Document Name | Date/Time | Subjects |
|---|