ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                        February 2, 2005                                                                                        
                           3:21 p.m.                                                                                            
                                                                                                                                
                                                                                                                              
                                                                                                                                
MEMBERS PRESENT                                                                                                               
Representative Tom Anderson, Chair                                                                                              
Representative Gabrielle LeDoux                                                                                                 
Representative Bob Lynn                                                                                                         
Representative David Guttenberg                                                                                                 
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Pete Kott                                                                                                        
Representative Norman Rokeberg                                                                                                  
Representative Harry Crawford                                                                                                   
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 93                                                                                                               
"An Act relating to dentists  and dental hygienists and the Board                                                               
of  Dental Examiners;  establishing  certain  committees for  the                                                               
discipline   and  peer   review   of   dentists;  excluding   the                                                               
adjudicatory  proceedings of  the Board  of Dental  Examiners and                                                               
its  committees from  the Administrative  Procedure Act  and from                                                               
the jurisdiction  of the office  of administrative  hearings; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
HOUSE BILL NO. 90                                                                                                               
"An   Act  requiring   warrants  drawn   by  the   Department  of                                                               
Administration  against  the  state  treasury  to  be  negotiable                                                               
instruments."                                                                                                                   
                                                                                                                                
     - MOVED HB 90 OUT OF COMMITTEE                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB  93                                                                                                                  
SHORT TITLE: DENTISTS AND DENTAL HYGIENISTS                                                                                     
SPONSOR(s): REPRESENTATIVE(s) ANDERSON                                                                                          
                                                                                                                                
01/21/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/21/05       (H)       L&C, JUD, FIN                                                                                          
01/28/05       (H)       L&C AT 3:15 PM CAPITOL 17                                                                              
01/28/05       (H)       -- Meeting Canceled --                                                                                 
02/02/05       (H)       L&C AT 3:15 PM CAPITOL 17                                                                            
                                                                                                                                
BILL: HB  90                                                                                                                  
SHORT TITLE: STATE TREASURY WARRANTS                                                                                            
SPONSOR(s): STATE AFFAIRS                                                                                                       
                                                                                                                                
01/21/05       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/21/05       (H)       L&C, STA                                                                                               
02/02/05       (H)       L&C AT 3:15 PM CAPITOL 17                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JON BITTNER, Staff                                                                                                              
Representative Anderson                                                                                                         
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 93 on behalf of the sponsor,                                                                  
Representative Anderson.                                                                                                      
                                                                                                                                
DR. GEORGE SCHAFFER, Dentist, and Member,                                                                                       
Executive Council of Alaska Dental Society                                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified on HB 93.                                                                                        
                                                                                                                                
DR. ROBINSON, Dentist, and Member,                                                                                              
Board of Dental Examiners                                                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified on HB 93.                                                                                        
                                                                                                                                
REPRESENTATIVE MAX GRUENBERG                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Explained HB 90.                                                                                           
                                                                                                                                
KIM GARNERO, Director,                                                                                                          
Division of Finance                                                                                                             
Department of Administration                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  During hearing of HB 90, offered additional                                                                
information.                                                                                                                    
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
                                                                                                                                
CHAIR TOM ANDERSON  called the House Labor  and Commerce Standing                                                             
Committee meeting to order at  3:21:31 PM.  Representatives Lynn,                                                             
Ledoux,  Guttenberg, Kott  were  present at  the  call to  order.                                                               
Representative Crawford is still in  Anchorage, Alaska.  Today we                                                               
have two bills,  HB 93 and HB 90.   We do not plan  on taking the                                                               
bills out of committee today.                                                                                                   
                                                                                                                                
HB  93-DENTISTS AND DENTAL HYGIENISTS                                                                                         
                                                                                                                              
CHAIR ANDERSON announced  that the first order  of business would                                                               
be HOUSE  BILL NO. 93,  "An Act  relating to dentists  and dental                                                               
hygienists  and  the  Board  of  Dental  Examiners;  establishing                                                               
certain  committees  for  the  discipline   and  peer  review  of                                                               
dentists; excluding the adjudicatory  proceedings of the Board of                                                               
Dental  Examiners  and  its committees  from  the  Administrative                                                               
Procedure  Act  and  from  the  jurisdiction  of  the  office  of                                                               
administrative hearings; and providing for an effective date."                                                                  
                                                                                                                                
3:22:59 PM                                                                                                                    
                                                                                                                                
JON  BITTNER, Staff  to Representative  Anderson, started  off by                                                               
stating that the committee should have a CS for HB 93.                                                                          
                                                                                                                                
CHAIR ANDERSON moved  to adopt the CSHB  93, Version 24-LS0384/G,                                                               
for discussion  purposes.   There being  no objection,  Version G                                                               
was before the committee.                                                                                                       
                                                                                                                                
3:23:34 PM                                                                                                                    
                                                                                                                                
MR.  BITTNER  began  by  stating that  there  were  five  amended                                                               
sections. The  first one is  on page 11, after  'dentistry' where                                                               
we  added 'dental  hygiene', and  on  line 13,  we added  'dental                                                               
hygienists'. Page three, line 7-9,  adds the words " threatens or                                                               
compromises  patient  care,  has   the  potential  to  compromise                                                               
patient care, or  after disability'. We added this  into the bill                                                               
to  protect against  discrimination. Page  five, lines  18-20, we                                                               
add 'a copy  of the summary published under  this paragraph shall                                                               
be delivered to the named  licensee if possible the delivery will                                                               
be  by electronic  mail or  facsimile'. Page  ten, line  one, has                                                               
been  amended to  add  'a  mediator approved  by  the board',  to                                                               
replace 'either  a dentist  or attorney  licensed to  practice in                                                               
the state'.  This has been  added to  allow dentists to  serve as                                                               
mediators. This amendment is something  of an oversight from when                                                               
the bill was first legislated.                                                                                                  
                                                                                                                                
CHAIR  ANDERSON  asked  Mr.  Bittner  to sum  up  why  his  staff                                                               
sponsors the bill.                                                                                                              
                                                                                                                                
MR. BITTNER stated  that basically, this brings  the expertise of                                                               
dentists and  hygienists to the  process of  reviews, complaints,                                                               
within the industry. It also  empowers the dental board to impose                                                               
remedial measures  and disciplinary  actions. It gives  the board                                                               
the  authority to  refer certain  types of  complaints to  a peer                                                               
review  committee,  and more  serious  complaints  will go  to  a                                                               
disciplinary  committee. The  board  will have  the authority  to                                                               
suspend licenses  of those  that endanger  the public  health. It                                                               
will add uniform  standards to the dental practice  in Alaska. It                                                               
gives patients a peer review process to address their concerns.                                                                 
                                                                                                                                
CHAIR  ANDERSON asked  if Mr.  Bittner could  give an  example of                                                               
what  would happen  within  the  new process  should  a crime  be                                                               
committed by a dentist.                                                                                                         
                                                                                                                                
MR. BITTNER  stated that one of  the things that HB  90 addresses                                                               
is the availability  of drug and alcohol treatment.  This gives a                                                               
dentist that has a drinking  problem, the family can intervene on                                                               
his behalf and  go to the board  who then can ask  the dentist to                                                               
seek help or suffer penalties.                                                                                                  
                                                                                                                                
CHAIR ANDERSON stated that the great  thing about this is that it                                                               
has fellow dentists analyze these  problems. Its like youth court                                                               
for young offenders.                                                                                                            
                                                                                                                                
MR. BITTNER said that they  understand the problems best and they                                                               
also understand the techniques that are desirable in dentistry.                                                                 
                                                                                                                                
3:28:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LYNN  asked  what  kind  of  physical  or  mental                                                               
disability would not threaten patient care.                                                                                     
                                                                                                                                
MR.  BITTNER  stated that  a  disorder  like Tourette's  Syndrome                                                               
could  be an  example.  He then  retorted that  it  has not  been                                                               
specifically laid out.                                                                                                          
                                                                                                                                
REPRESENTATIVE LYNN understood this  but acknowledged that he was                                                               
not  sure if  he  wanted a  dentist working  on  his teeth  while                                                               
yelling out expletives.                                                                                                         
                                                                                                                                
MR.  BITTNER answered  absolutely  and commented  that there  are                                                               
many less  severe mental  disorders that are  out there.  He then                                                               
commented  that  it  would  be  up to  the  board  to  make  this                                                               
determination.                                                                                                                  
                                                                                                                                
CHAIR ANDERSON took  this further and stated that  dyslexia is an                                                               
example of  an affliction that  is less  severe. He then  goes to                                                               
public discussion.                                                                                                              
                                                                                                                                
3:30:11 PM                                                                                                                    
                                                                                                                                
DR.  GEORGE SCHAFFER,  licensed dentist  for the  past 25  years,                                                               
member of the  executive council of Alaska  Dental Society, began                                                               
by  stating that  he  had a  roommate in  dental  school who  was                                                               
certified paranoid. He was worried that  the world was out to get                                                               
him,  and that  despite  this  mental disorder,  he  was able  to                                                               
function in  the profession  and run  a successful  practice. His                                                               
problems did not affect his  patients. They affected his personal                                                               
being only.                                                                                                                     
                                                                                                                                
CHAIR ANDERSON asked  what Dr. Schaffer thought of  as the merits                                                               
of the bill before the committee today.                                                                                         
                                                                                                                                
DR. GEORGE  SCHAFFER started off  by stating that dentistry  is a                                                               
very  different profession.  Medicine, law,  and engineering  are                                                               
almost always  practiced in groups. Dentistry  is practiced alone                                                               
in  a single  office. Dentists  do not  have other  professionals                                                               
looking over their shoulders. The  concern here is that they rely                                                               
on the  state licensing board  to judge the  dentist's practicing                                                               
ability. He went  on to say that  when he served on  the board, a                                                               
complaint would  come in, and  it was investigated by  someone in                                                               
law who would then hand it over  to the board. The board does not                                                               
see  the  name  or  any  of  the  evidence.  They  get  what  the                                                               
investigator  has related  in  the summation.  They  also get  an                                                               
advisory opinion on any action  that should be taken. The problem                                                               
here is  that the  board has  no name, no  evidence, and  no real                                                               
part in  the investigation.   The professionals  need to  see the                                                               
evidence  before they  are forced  to make  a decision  against a                                                               
fellow dental practitioner.                                                                                                     
                                                                                                                                
DR.  SCHAFFER went  on to  say that  the new  bill does  this and                                                               
defines the standards how the evidence  is gathered and how it is                                                               
handled when it  is in the state's hands. He  finished by stating                                                               
that  this bill  allows the  president or  vice president  of the                                                               
board to 'triage  a complaint'. If it is  something very serious,                                                               
the board as a whole will deal  with the complaint. If it is less                                                               
severe, like  polishing teeth when  not permitted to do  so, then                                                               
these  issues  are  put  into   peer  review  or  a  disciplinary                                                               
committee. The president  of the board would  decide the severity                                                               
of the  complaints and  the penalties. One  of the  three groups:                                                               
the peer review,  the disciplinary committee, or  the whole board                                                               
itself will address the issues.                                                                                                 
                                                                                                                                
CHAIR  ANDERSON   decided  that  unless  there   was  a  pressing                                                               
question, he  would ask  Dr. Schaffer to  be available  next time                                                               
the bill is heard.                                                                                                              
                                                                                                                                
3:37:55 PM                                                                                                                    
                                                                                                                                
DR. ROBINSON, general  dentist in Alaska for 40  years, member on                                                               
the board of Dental Examiners,  added two things to the testimony                                                               
given by  Dr. Schaffer.  He started by  stating that  is possible                                                               
that a  case be dismissed after  review. The other thing  is that                                                               
this bill  puts in writing  the program for substance  abuse that                                                               
is available and gives it further credibility.                                                                                  
                                                                                                                                
CHAIR  ANDERSON  stated that  his  staff  and  Mr. Urion  at  the                                                               
Department of Occupational Licensing would work on this bill.                                                                   
                                                                                                                                
REPRESENTATIVE  GUTTENBERG  asked  if  the  chair  was  expecting                                                               
substantial rewrite from Mr. Urion.                                                                                             
                                                                                                                                
CHAIR  ANDERSON  answered that  he  did  not  think so.  He  then                                                               
announced that he was holding public testimony until next time.                                                                 
                                                                                                                                
[HB 93 was held over.]                                                                                                          
                                                                                                                                
HB  90-STATE TREASURY WARRANTS                                                                                                
                                                                                                                                
CHAIR ANDERSON announced  that the final order  of business would                                                               
be HOUSE  BILL NO. 90,  "An Act  requiring warrants drawn  by the                                                               
Department  of Administration  against the  state treasury  to be                                                               
negotiable instruments."                                                                                                        
                                                                                                                                
3:40:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   MAX   GRUENBERG,   Alaska   State   Legislature,                                                               
explained  that  HB 90  simply  makes  state warrants  negotiable                                                               
instruments.    The state  pays  its  bills  with warrants.    He                                                               
informed  the committee  that the  question as  to whether  these                                                               
warrants  are legally  negotiable instruments  under the  Uniform                                                               
Commercial  Code (UCC)  arose.   The Alaska  Supreme Court  case,                                                               
Univentures [National  Bank of AK v.  Univentures 1231 (1/24/92),                                                           
824  P  2d 1377]  case,  to  hold  that warrants  are  negotiable                                                               
instruments.   In the aforementioned  case the banks were  put in                                                               
the position  in which the  state would say the  warrants weren't                                                               
negotiable  instruments, and  therefore the  banks would  be left                                                               
"holding  the bag."   Representative  Gruenberg specified  that a                                                               
warrant  is similar  to  a check  and the  state  still pays  its                                                               
employees with  warrants.   He informed  the committee  that this                                                               
legislation  was introduced  last  year, went  through the  House                                                               
State Affairs  Standing Committee and  passed the full  House and                                                               
proceeded  to  the  Senate Rules  Standing  Committee,  where  it                                                               
resided.  He  said that he wasn't aware of  any objection to this                                                               
legislation.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX inquired  as to  how the  state failed  to                                                               
honor its instruments.                                                                                                          
                                                                                                                                
REPRESENTATIVE  GRUENBERG  answered  that being  a  warrant,  the                                                               
state took  the position  that they  weren't instruments  and the                                                               
dishonor  provisions  of  the  UCC didn't  apply.    He  recalled                                                               
introducing  legislation on  this back  in  the mid  1980s.   The                                                               
state was so  opposed to this, that it took  the banks taking the                                                               
matter  to the  Alaska Supreme  Court  where it  upheld that  the                                                               
warrants were negotiable instruments.                                                                                           
                                                                                                                                
REPRESENTATIVE  LEDOUX  clarified that  she  was  asking why  the                                                               
state was not honoring its own warrants.                                                                                        
                                                                                                                                
REPRESENTATIVE GRUENBERG specified that  it would depend upon the                                                               
individual  warrant.   The state  may  have felt  the vendor  was                                                               
supplying defective  merchandise, for  instance, and  thus didn't                                                               
want to honor  the warrant.  He recalled that  in the Univentures                                                             
case  the state  was  a tenant  in an  office  building owned  by                                                               
Univentures.    There  was  a dispute  between  the  partners  of                                                               
Univentures and the state was  notified that it shouldn't pay the                                                               
monthly  rent  to  one  of the  partners  of  Univentures,  which                                                               
resulted  in the  state stopping  payment  on the  warrant.   The                                                               
state was  directed to hold  the rent  in abeyance until  a court                                                               
appointed  receiver  was  named.   Meanwhile,  National  Bank  of                                                               
Alaska had  paid out $28,143.47.   Representative Gruenberg noted                                                               
that  the  aforementioned wasn't  the  largest  warrant that  was                                                               
dishonored.                                                                                                                     
                                                                                                                                
REPRESENTATIVE GUTTENBERG  surmised that  the state  has followed                                                               
the court  ruling and this legislation  merely inserts conforming                                                               
language in statute.                                                                                                            
                                                                                                                                
REPRESENTATIVE GRUENBERG agreed.                                                                                                
                                                                                                                                
3:48:44 PM                                                                                                                    
                                                                                                                                
KIM  GARNERO,  Director,  Division   of  Finance,  Department  of                                                               
Administration, confirmed  that this legislation  simply codifies                                                               
in statute the earlier mentioned  1992 Alaska Supreme Court.  The                                                               
case  meant that  warrants should  be  treated as  checks in  the                                                               
banking   industry.     Since  that   decision,  the   state  has                                                               
administered   its  warrants   as  negotiable   instruments,  and                                                               
therefore  no  administrative  changes   are  necessary  if  this                                                               
legislation passes.                                                                                                             
                                                                                                                                
CHAIR  ANDERSON,  upon determining  there  were  no questions  or                                                               
witnesses, closed public testimony.                                                                                             
                                                                                                                                
3:50:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GUTTENBERG moved to report  HB 90 out of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.  There being no objection, it was so ordered.                                                                            
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Labor and  Commerce Standing Committee  meeting was  adjourned at                                                               
3:50:48 PM.