SB 99-CPA AS PRIVATE PROFESSIONAL CONSERVATORS  2:10:04 PM CHAIR BJORKMAN reconvened the meeting and announced the consideration of SENATE BILL NO. 99 "An Act relating to private professional conservators; and providing for an effective date." 2:10:32 PM SENATOR ROBERT MYERS, District Q, Alaska State Legislature, Juneau, Alaska, sponsor of SB 99 presented a summary of the following legislation: [Original punctuation provided.] The issue we are seeking to address with SB 99 was originally brought to our attention by a constituent. After looking into the statutes, we realized that there could be an alternative to the current conservator licensing process that would allow more people to become private professional conservators while keeping the high standards that protect the individuals under their care. Currently, an individual seeking a private professional conservator license must obtain a certificate in guardianship from a national organization before applying for their conservator license from the State of Alaska. The guardianship certification is applicable to people who wish to become full guardians, but it is much less applicable to someone who will only be handling finances and will not have responsibility for the physical wellbeing of the individuals under their care. This certification is costly and time intensive, especially for professionals who already maintain certification for a related professional license. Certified Public Accountants must obtain their bachelor's degree in accounting and complete continuing education credits every two years. Since CP As are already qualified professionals with an emphasis on fiduciary responsibilities, they are strong candidates for being private professional conservators. SB 99 seeks to create an alternative to the guardianship certification requirement currently in statute for individuals who are licensed as CP As in Alaska. Licensed CP As would still have to meet all other requirements under the current statutes. This would just remove the external certification requirement for CP As which could be a barrier to individuals becoming licensed private professional conservators. As Alaska's population is aging, we will continue to have increased need for professionals who can provide financial support to this group. Unfortunately, we are already facing a shortage of providers who can offer care for the needs of an aging population. While this bill will not be enough to solve all of these issues, we hope it will be a small step towards addressing the needs of our state. 2:13:02 PM ASHLYN BROOKS, Staff, Senator Robert Myers, Alaska State Legislature, Juneau, Alaska, provided the sectional analysis for SB 99: [Original punctuation provided.] SB 99 ver. A Sectional Analysis  Section 1: Page 1, Lines 4-14; Page 2, Lines 1-11  Adds previous licensing as a CPA under AS 08.04 as an alternative to certification by a national guardianship group in order to become a licensed conservator. Section 2: Page 2, Lines 12-21.  Conforming language regarding the issuance of temporary licenses for private professional guardians. Section 3: Page 2, Lines 22-28.  Establishes that a temporary license holder may submit proof of required guardianship certificate or CPA license to obtain a permanent license. Section 4: Page 2, Lines 29-31; and Page 3, Lines 1-5. Adds a new section establishing that the Department of Commerce, Community, and Economic Development shall issue a temporary license to an individual seeking a private professional conservator license who likely will become certified or licensed within one year from the date the temporary license is issued if they meet all other requirements of a private professional conservator license. Section 5: Page 3, Lines 6-31; and Page 4, Lines 1-7. Conforming language stating that failure to maintain either a CPA license or a national guardianship certification is grounds for disciplinary action. Section 6: Page 4, Line 8  Establishes an immediate effective date for the bill. 2:15:43 PM CHAIR BJORKMAN announced invited testimony on SB 99. 2:15:54 PM GORDON WILLIAMS, Attorney, Ketchikan, Alaska, testified by invitation on SB 99 and stated that guardianship and conservatorship proceedings are serious legal matters because they involve taking away a person's rights to manage their own money or make personal decisions often due to illness, dementia, or injury, not because of any wrongdoing. That's why it's so important to have qualified, trustworthy people involved in these cases. He said adding licensed CPAs to the list of those eligible to serve in these roles makes sense, as they are already trained, regulated professionals with the skills needed to manage finances and prepare accurate reports. 2:19:44 PM CHAIR BJORKMAN asked if a CPA wants to become a conservator now what do they have to do and how would that change under this current legislation. 2:19:59 PM MR. WILLIAMS responded that a CPA can already serve as a conservator without a license, but to be a licensed professional conservator, they currently must get certified by the National Guardianship Association. SB 99 removes that extra step, recognizing that CPAs already have the skills and training needed. 2:21:34 PM SENATOR DUNBAR clarified that in Mr. Williams testimony he mentioned he was part of a group that put forward different kinds of legislation proposals. He asked if that was under the guidance of the bar association and what does the group do. 2:22:00 PM MR. WILLIAMS answered that the Association of Trust and Estate Professionals is not linked with the bar association. He said the group is a state planning professional association. 2:22:51 PM SENATOR DUNBAR asked that Mr. Williams describe the legal difference between a conservatorship and a guardianship. 2:23:19 PM MR. WILLIAMS responded that a guardian is someone who makes health, welfare and safety decisions for a person who can't make them on their own and a conservator makes decisions concerning a persons money and assets. He said in Alaska there is a third option called a full guardianship, who makes the guardian decisions as well as the conservator decisions. 2:25:09 PM SENATOR DUNBAR asked if SB 99 only impacts conservatorships and is there a separate licensing process for guardians. 2:25:34 PM MR. WILLIAMS answered that he does not know. 2:26:21 PM SENATOR MYERS explained that guardians and conservators have separate licenses. A guardian license covers all aspects of care, while a conservator license only applies to financial matters. In Alaska, the two licensing programs are similar, but SB 99 aims to further distinguish between them. 2:27:40 PM MR. WILLIAMS referenced AS 08.26.010 that discusses licensing for guardians and conservators. 2:28:32 PM VIVIAN STIVER, representing self, Fairbanks, Alaska, testified by invitation on SB 99: [Original punctuation provided.] I am writing my letter of support today as a private citizen in my capacity as a senior housing professional and not in my capacity as a member of the Alaska Commission on Aging board of directors. I have worked in senior housing for the last 15 years and have witnessed just how important it is for our seniors to remain as independent as possible as they age. Seniors thrive socially, physically and emotionally when the appropriate amount of assistance is available for them. Losing independence too soon can cause them to retreat socially and feel discouraged because of the loss of control in areas of their lives which they could continue to address independently. 2:29:19 PM MS. STIVER continued with her testimony of SB 99: Over the years I worked with a couple of seniors that experienced tremors and could no longer write checks. They would hand me the check book asking me to fill it in for them. This always makes me uncomfortable because they are vulnerable to "bad actors" who could alter the check, get account numbers and other information. Having a conservator would close this loop and protect the senior financially. Also, since seniors don't use computers, a conservator has a better chance of identifying withdrawals from a senior's account promptly because of fraud such as "phishing." A conservator has limited powers compared to a guardian because the conservator only manages financial affairs for the senior such as collecting and depositing all income, pays all debts and bills, secures all assets, and handles taxes and insurance. Making it more reasonable for accountants to fill this role by adjusting the licensing requirements, will assist our seniors in remaining independent longer, keeping their dignity intact while protecting them from "bad actors." MS. STIVER stated having a licensed financial guardian can ease the burden on families, providing reassurance and reducing stress. Typically, a child that lives close to the individual typically is the guardian and caregiver. Separating financial management from direct care helps balance responsibilities and alleviates pressure on the primary caregiver. 2:32:10 PM CHAIR BJORKMAN asked what someone would need to do to become a conservator. 2:32:34 PM MS. BROOKS answered that conservators must get certified through a national guardianship organization by taking mostly accounting and technical training courses. These courses may be taken online. She said every other year the conservator would need to be recertified by taking continuing education classes through the same institution. 2:33:35 PM CHAIR BJORKMAN asked whether there is training for conservators that have clients who cant advocate for themselves, like dementia. 2:33:56 PM MS. BROOKS replied that to receive a certificate from the National Guardianship Association, a person must learn one of the core competencies called surrogate decision making and it may be helpful in a situation with a dementia client. 2:34:40 PM CHAIR BJORKMAN asked what the barriers are for CPAs to be conservators. 2:34:52 PM MS. BROOKS responded that the main barriers are finances and time. She said it cost $1800 dollars to get certified and licensed in Alaska. 2:35:43 PM SENATOR MYERS added that SB 99 aims to remove unnecessary barriers for those who only want to handle the financial side of care. Current certification includes training that mostly applies to guardianship. The goal is to make it easier for those already trained in financial responsibility to serve in this role. 2:37:44 PM SENATOR DUNBAR referenced Section 5 [AS.08.26.130] stating that the department may take disciplinary action against an individual. He assumed that there isn't a board handling the licensing and discipline. He asked what department oversees disciplinary actions and if applicants wont be paying the national certification fee will they still pay the state licensing fee. 2:38:31 PM SYLVAN ROBB, Director, Division of Corporations, Business and Professional Licensing, Department of Commerce, Community and Economic Development (DCCED), Anchorage, Alaska, and answered that there isn't a board for this program and the Department of Commerce, Community and Economic Development (DCCED) would take over disciplinary and license action. She said the Guardian and Conservator Program is a small program with as few as 20 licensees and won't require much money to run. 2:39:11 PM SENATOR DUNBAR asked whether DCCED anticipated an increase in [disciplinary] actions, or any risk of inappropriate action, if legislators allowed licensure without requiring certification from NGA, using only a CPA license. 2:39:45 PM MS. ROBB replied that becoming a CPA requires more education, including a bachelor's degree, while a conservator license only requires experience handling finance or at least an associate degree in a related field. She reiterated this is a small program, and important safeguards like background checks and checks with adult protective services will remain in place to ensure conservators meet the same high standards already required. 2:40:39 PM SENATOR DUNBAR asked whether it is DCCED's assertion that SB 99 would not pose an increased financial risk to people under the care of conservators. 2:41:03 PM MS. ROBB answered that the division is neutral on SB 99. It is a policy call for the legislature. 2:41:27 PM SENATOR MYERS commented that his goal with SB 99 is to make it easier for somebody to obtain and hold on to a conservatorship license. 2:43:11 PM CHAIR BJORKMAN held SB 99 in committee.