CS FOR SENATE BILL NO. 38(FIN) "An Act extending the termination date of the State Medical Board; relating to the executive secretary of the State Medical Board; and providing for an effective date." 2:08:33 PM DAVID SCOTT, STAFF, SENATOR DONNY OLSON, addressed the bill that extended the sunset date of the state medical board through 2020. He stated that LB&A reviewed the board activities and concluded that the board served the public interest. The LB&A recommended a seven year sunset date extension. The board was responsible for the licensing, regulation and discipline of physicians, podiatrists, physician assistants and paramedics. The board had two full time employees and the costs were covered by licensing fees and all revenue from the board covered its full operating costs. The board unanimously supported increasing fees to cover the costs associated with the legislation. 2:10:57 PM Representative Wilson pointed to the three deficiencies listed in the audit that addressed a lack of oversight. Mr. Scott stated that the board president would directly address the deficiencies noted in the audit. Representative Wilson noted audit deficiencies typically led to shortened extensions. Representative Kawasaki wondered about the salary increase provided in the bill. He wondered if it was typical to include a salary increase in a board sunset bill. Co-Chair Stoltze noted that board extensions sometimes carried major policy initiatives, but the legislature was reforming the process. 2:14:12 PM Representative Gara asked the committee chair to bring the medical board representative before the committee by telephone. He told a story related to law practice. 2:16:44 PM Co-Chair Austerman wondered what a range 23 paid. Mr. Scott asked for a repeat of the question. Co-Chair Austerman repeated his question. Mr. Scott offered to get back to the committee with the answer. He estimated that a range 23 paid $75 thousand per year. Senator Pete Kelly joined the audience. Vice-Chair Neuman joined the committee. Co-Chair Austerman stated that a large disparity existed between a doctor's charges for services in Alaska when compared to those in the Lower 48. He thought that the fiscal note for the bill explained that disparity. 2:18:27 PM Representative Munoz asked about a disciplinary action taken against a licensee. She wondered how the public received information about the action. Mr. Scott did not know. Representative Wilson asked if the sponsor would oppose a shorter sunset. She was not convinced that the audit's deficiencies had been addressed. Mr. Scott replied that there would not be an objection to a reasonable extension. CSSB 38(FIN) was HEARD and HELD in committee for further consideration. 2:20:20 PM AT EASE 2:22:00 PM RECONVENED CS FOR SENATE BILL NO. 38(FIN) "An Act extending the termination date of the State Medical Board; relating to the executive secretary of the State Medical Board; and providing for an effective date." 7:36:27 PM DON HABEGAR, DIRECTOR, DIVISION OF CORPORATIONS, BUSINESS AND PROFESSIONAL LICENSING, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT stated that he had an opportunity to listen to the committee's prior hearing on the legislation. DAVE SCOTT, STAFF, SENATOR OLSON, answered Representative Munoz's earlier question about the board's presentation of findings to the public. He noted that the administrative procedure act was applicable to the board allowing for the Open Meeting Act. He added that "the board shall make available to the public the information maintained under (a) and (b) of the section for each person licensed under this chapter" as stated in AS 08.64.130. Mr. Scott responded to Representative Wilson's question about the board's recommendations regarding the audit from LB&A. Co-Chair Stoltze directed the question to Mr. Habegar. Mr. Habegar stated that the audit's first point addressed the database issues. He noted that ample work was done this month to continue with the maintenance agreement. He stated that testing the changes in the database and the records would prove the work done. 7:40:21 PM Mr. Habegar stated that the second piece of the audit dealt with continuing education. The department implemented a professional licensing database system. He added that the recommendation also required procedures mandating that the board report to the federation of state database to ensure that a check-and-balance system was established. The board ensured that their executive administrator was liaison with the chief medical investigator to ensure timeliness. 7:41:47 PM Representative Wilson noted that the computer system change led to the issues. She wondered if the improvements in the database gave the director the confidence to approve of the extension. Mr. Habegar admitted that he was hopeful and had many IT specialists working on the issue. Co-Chair Stoltze noted fewer and fewer problems with the new director of boards and commissions. 7:42:54 PM Representative Kawasaki asked about the salary schedule changes and the other boards and commissions. He wondered if the department would provide staff for the board. He asked if other boards had the latitude to select salary ranges for executive directors and staff. Mr. Habegar replied that salaried positions were set by DOA; however the Certified Public Accountant (CPA) board did address the issue by placing a range in statute. The salary raise was not allowed outside of the administration process and he believed that the board was taking advantage of the CPA model. 7:44:18 PM Representative Gara asked about the small medical community and the difficulty with doctors realizing that another had breached duties. He wondered about an outside doctor brought in to do an evaluation. Mr. Habegar responded that occasionally an outside doctor comes in and in a standard of care issue; staff had certain liaisons that would advise staff. If the case investigation did require experts, they were hired outside of the state. 7:46:51 PM Representative Gara encouraged the practice. Co-Chair Stoltze CLOSED public testimony. Co-Chair Stoltze asked about objections to changing the sunset date. Representative Wilson stated no. 7:48:21 PM Representative Costello discussed the fiscal note which indicated fiscal impact of $484.6 thousand for FY 14 through FY 19 and two full time positions. Co-Chair Stoltze asked if the benefits would be increased to $110 thousand. Representative Costello MOVED to REPORT CSSB 38 (FIN) out of committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, it was so ordered. CSSB 38 (FIN) was REPORTED out of committee with a "no" recommendation and with one previously published fiscal impact note: FN1(CED).