ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 11, 2009
3:18 p.m.
MEMBERS PRESENT
Representative Kurt Olson, Chair
Representative Mike Chenault
Representative John Coghill
Representative Bob Lynn
Representative Robert L. "Bob" Buch
Representative Lindsey Holmes
MEMBERS ABSENT
Representative Mark Neuman, Vice Chair
COMMITTEE CALENDAR
HOUSE BILL NO. 29
"An Act increasing the minimum wage; and providing for an
effective date."
- MOVED CSHB 29 (L&C) OUT OF COMMITTEE
HOUSE BILL NO. 175
"An Act relating to insurance, including treating as
confidential certain information submitted to the director of
insurance by the National Association of Insurance
Commissioners; clarifying conditions for the release of insurer
deposits; defining travel insurance that may be sold under a
travel insurance limited producer license; establishing criteria
for licensing of nonresident independent adjusters as resident
adjusters; exempting rewards under a wellness program from
treatment as insurance discrimination or rebating; making
certain insurance required of the Comprehensive Health Insurance
Association permissive rather than mandatory; providing for the
administration of loss reimbursement policies and payments to
guaranty associations during insolvency proceedings; making
certain provisions relating to statements on applications and
guaranteed renewability for individual health insurance
applicable to hospital and medical service corporations; making
public certain forms and related documents filed for approval by
a hospital or medical service corporation after the filing
becomes effective; relating to deposits of self-funded multiple
employer welfare arrangements; repealing reasons that the
director of insurance may use to deny or revoke a license; and
providing for an effective date."
- HEARD AND HELD
HOUSE BILL NO. 78
"An Act extending the termination date of the Board of Public
Accountancy; and providing for an effective date."
- MOVED HB 78 OUT OF COMMITTEE
HOUSE BILL NO. 86
"An Act extending the termination date of the Board of
Veterinary Examiners; and providing for an effective date."
- MOVED HB 86 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 29
SHORT TITLE: ALASKA MINIMUM WAGE
SPONSOR(s): REPRESENTATIVE(s) OLSON
01/20/09 (H) PREFILE RELEASED 1/9/09
01/20/09 (H) READ THE FIRST TIME - REFERRALS
01/20/09 (H) L&C, FIN
02/23/09 (H) L&C AT 3:15 PM BARNES 124
02/23/09 (H) Heard & Held
02/23/09 (H) MINUTE(L&C)
03/09/09 (H) L&C AT 3:15 PM BARNES 124
03/09/09 (H) Heard & Held
03/09/09 (H) MINUTE(L&C)
03/11/09 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 175
SHORT TITLE: INSURANCE
SPONSOR(s): LABOR & COMMERCE
03/09/09 (H) READ THE FIRST TIME - REFERRALS
03/09/09 (H) L&C, FIN
03/11/09 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 78
SHORT TITLE: EXTEND BOARD OF PUBLIC ACCOUNTANCY
SPONSOR(s): LABOR & COMMERCE
01/21/09 (H) READ THE FIRST TIME - REFERRALS
01/21/09 (H) L&C, FIN
03/11/09 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 86
SHORT TITLE: EXTENDING VETERINARY BOARD
SPONSOR(s): LABOR & COMMERCE
01/26/09 (H) READ THE FIRST TIME - REFERRALS
01/26/09 (H) L&C, FIN
03/11/09 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
JENNIFER SENETTE, Staff
Representative Kurt Olson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 29 on behalf of the prime
sponsor, Representative Kurt Olson.
LINDA HALL, Director
Division of Insurance (DOI)
Anchorage Office
Department of Community & Economic Development (DCCED)
Anchorage, Alaska
POSITION STATEMENT: Presented the bill and answered questions
during the discussion of HB 175.
KONRAD JACKSON, Staff
Representative Kurt Olson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Speaking as staff to the House Labor and
Commerce Standing Committee, sponsor of HB 78 and HB 86,
presented HB 78 and HB 86.
PAT DAVIDSON, Legislative Auditor
Division of Legislative Audit
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented auditor recommendations and
answered questions during the discussion of HB 78 and HB 86.
ACTION NARRATIVE
3:18:30 PM
CHAIR KURT OLSON called the House Labor and Commerce Standing
Committee meeting to order at 3:18 p.m. Representatives
Chenault, Buch, Holmes, and Olson were present at the call to
order. Representatives Coghill and Lynn arrived as the meeting
was in progress.
The committee took an at-ease from 3:18 p.m. to 3:20 p.m.
HB 29-ALASKA MINIMUM WAGE
3:20:34 PM
CHAIR OLSON announced that the first order of business would be
HOUSE BILL NO. 29, "An Act increasing the minimum wage; and
providing for an effective date."
CHAIR OLSON announced that public testimony was previously
closed for HB 29.
3:20:49 PM
JENNIFER SENETTE, Staff, Representative Kurt Olson, Alaska State
Legislature offered to answer any questions that committee
members may have.
3:21:00 PM
REPRESENTATIVE HOLMES recalled the federal and state minimum
wages. She inquired as to whether both minimum wages would
apply to all employers in Alaska. She also asked if employers
are required to pay the higher of the two rates or if certain
employers within the state were exempted.
MS. SENETTE responded that higher of the two minimum wages would
apply. She pointed out that some states have a higher minimum
wage than the federal level. In those instances, if an employee
is covered by both, the person is entitled to the higher of the
two minimum wages. She stated that even without passage of HB
29, in July the employee would be entitled to the federal
minimum wage. The federal minimum wage law, the Fair Labor
Standards Act (FLSA), applies to employees of enterprises that
have an annual gross volume and sales of higher over $500,000
and to smaller firms involved in interstate commerce. However,
there are exceptions to the federal minimum wage law, such as
broad exceptions for farmers or fishermen, which are similar to
Alaska's exceptions, but include narrow exceptions for people
who work at home such as wreath makers. She related that the
Department of Labor & Workforce Development (DLWD) indicated
some confusion currently exists with the U.S. Department of
Labor (USDOL) since the department is in flux. Thus, it is
difficult to tell which exemptions at the federal level and
state level will apply. She further related she will monitor
the federal policies that apply.
3:24:03 PM
REPRESENTATIVE HOLMES said, "It's pretty safe to say that would
be a pretty small universe and the vast majority of people
working in the state would be covered under, would basically ...
be whichever one is higher."
MS. SENETTE agreed. She explained that the federal exemptions
were not reflected in Alaska's minimum wage would probably
affect smaller numbers. She recalled the wreath makers who have
an exemption.
3:24:53 PM
The committee took an at-ease from 3:24 p.m. to 3:26 p.m.
3:26:30 PM
REPRESENTATIVE HOLMES made a motion to adopt Amendment 1,
labeled 26-LS0177\A.3, Wayne, 2/27/09, which read:
Page 1, line 14:
Delete "July 1, 2009"
Insert "January 1, 2010"
CHAIR OLSON objected for purposes of discussion.
3:26:52 PM
MS. SENETTE related that throughout this process the bill's
sponsor has heard from people throughout the state. This
amendment addresses the concerns expressed by businesses. She
stated that Amendment 1 will help businesses by allowing them
adequate time to budget for the increase to the minimum wage,
and by delaying the date to January 1, 2010, will also prevent
business owners from having to start the summer season with one
wage and then increase employee's wages on July 1, 2009.
3:27:55 PM
CHAIR OLSON removed his objection.
There being no further objection, Amendment 1 was adopted.
3:28:17 PM
REPRESENTATIVE COGHILL stated he did not wish to hold up the
bill. He said that he agrees with the phasing in of the bill
due to the timing of federal law and the summer industries in
Alaska. He opined while he does not agree with minimum wages,
if an increase is favored that instead of increasing the minimum
wage by $.50 cents, the minimum wage could be increased by $.25,
especially given the downturn of the economy. He maintained
that he will not try to hold up HB 29.
CHAIR OLSON offered that he has not received any calls from
anyone who likes HB 29. He indicated that people have thought
the proposed increase in the minimum wage was either not enough
or too much. He reminded the committee that Alaska has a long
history of placing its minimum wage $.50 higher than the federal
minimum wage. He offered his belief that he has made
concessions with respect to inflation proofing and other
provisions previously considered. He opined that he is not
happy with the bill either, but the increase in minimum wage is
reasonable.
3:30:17 PM
REPRESENTATIVE COGHILL moved to report HB 29, Version 26-
LS0177\A, as amended out of committee with individual
recommendations and the accompanying fiscal note.
There being no objection, the CSHB 29(L&C) was reported from the
House Labor and Commerce Standing Committee.
3:30:53 PM
The committee took an at-ease from 3:30 p.m. to 3:32 p.m.
HB 175-INSURANCE
3:32:48 PM
CHAIR OLSON announced that the next order of business would be
HOUSE BILL NO. 175, "An Act relating to insurance, including
treating as confidential certain information submitted to the
director of insurance by the National Association of Insurance
Commissioners; clarifying conditions for the release of insurer
deposits; defining travel insurance that may be sold under a
travel insurance limited producer license; establishing criteria
for licensing of nonresident independent adjusters as resident
adjusters; exempting rewards under a wellness program from
treatment as insurance discrimination or rebating; making
certain insurance required of the Comprehensive Health Insurance
Association permissive rather than mandatory; providing for the
administration of loss reimbursement policies and payments to
guaranty associations during insolvency proceedings; making
certain provisions relating to statements on applications and
guaranteed renewability for individual health insurance
applicable to hospital and medical service corporations; making
public certain forms and related documents filed for approval by
a hospital or medical service corporation after the filing
becomes effective; relating to deposits of self-funded multiple
employer welfare arrangements; repealing reasons that the
director of insurance may use to deny or revoke a license; and
providing for an effective date."
3:33:09 PM
LINDA HALL, Director, Division of Insurance, Anchorage Office,
Department of Community & Economic Development (DCCED), stated
that HB 175 makes various changes to streamline the insurance
laws since the Division of Insurance, DCCED strives for
efficient regulations. She referred to three general areas that
HB 175 addresses, beginning with solvency oversight. She opined
that the insurance industry is strong and stable right now
although she expressed some concern in the life insurance
industry. Some insurance companies and producers make
statements about guarantees that the State of Alaska provides
for life insurance and annuities. She emphasized that the state
does not guarantee life insurance or annuities. Next, she
stressed that the division's mission is consumer protection.
She related that consumer protection is the major emphasis of
the division. She noted that the division has four consumer
service personnel whose job is to interact between consumers and
insurance companies. She indicated the division has four fraud
investigators with a law enforcement background. Finally, the
Division of Insurance looks at a healthy competitive
marketplace, pointing out that Alaska is a small market. Thus,
it is difficult to attract insurance companies. She offered her
belief that the best consumer protection is consumer choice of
insurance companies.
MS. HALL, in response to Representative Buch, offered to discuss
fraud as part of her discussion. She offered her belief that
the Division of Insurance has a criminal prosecutor and enforces
cases, stipulates agreements, and negotiates agreements.
However, she explained that compliance is a goal and some
education is required. She stressed that while a guaranty fund
is in the statute, it does not mean the state guarantees payment
of claims through the guaranty fund. In further response to
Representative Buch, MS. Hall related that any penalties and
fines collected are deposited in the general fund.
3:39:26 PM
MS. HALL referred to eight pages in HB 175 that relate to
insolvency. She mentioned that provisions in HB 175 will
streamline processes for the division and the insurance
industry, will clarify provisions in the statutes, and will help
the division achieve compliance with national standards. She
stated that Section 10 covers streamlining processes, which
allow the state to license nonresident adjusters whose state of
residence does not license adjusters. She pointed out that most
nonresident licensing is dependent on home state. Thus, if a
person who resides in Alaska is licensed as an insurance agent
or an insurance adjuster the person will be granted reciprocity
in another state based on the Alaska license. She noted some
states do not license independent insurance adjusters. This
provision would allow the state to license nonresidents to
adjust claims in Alaska. She also mentioned that Alaska has a
shortage of adjusters and the division hopes to ensure that
sufficient numbers of adjusters are available.
3:41:51 PM
MS. HALL, in response to Representative Holmes, agreed that the
change will allow the division to license the person as if
Alaska were his/her home state. She explained Section 12
provides a simplification in the insurance statutes. She
related that third party administrators are not licensed but
must submit to a registration process. She opined this process
is less onerous for third party administrators, who are often
out of state and may employ many people such as in a call center
in Dubuque, Iowa. This provision only requires registration of
the firm, although the firm is still accountable for all of its
employees, she stated.
3:43:14 PM
MS. HALL explained that Section 18 would allow the director to
accept another regulator's evaluation of a nonresident with a
felony conviction. Under federal law, to participate in the
insurance business, a person must have approval of the
regulator. In instances in which the person has a felony
conviction for dishonesty or breach of trust, called a 1033
application, the division must require the full application.
This will allow the division to accept the regulator's
evaluation from the person's home state. She also mentioned
that electronic resident licensing will be activated in Alaska
and beginning tomorrow Alaskans can apply online.
3:44:27 PM
MS. HALL referred to Sections 5 and 6, which she stated refer to
deposits. She explained changes to these provisions will
differentiate between domestic insurers and those insurers
domiciled in other states. She explained changes to these
provisions would allow flexibility for domestic insurers. She
pointed out that these sections relate to insurers undergoing
insolvency. Much of the liquidation and rehabilitation
provisions have not changed since 1990, she offered. She
related a major rewrite of Chapter 78 would have resulted in a
200-page bill. She opined that several provisions in HB 175 are
critical and need to be addressed. She stated that these
provisions clarify deposits for insurers as well as define
"working day" uniformly throughout the insurance statutes.
3:46:39 PM
REPRESENTATIVE HOLMES related her understanding that these
sections would give the Division of Insurance greater
flexibility.
MS. HALL answered yes, since these sections of the bill refer to
delinquency proceedings for domestic regulators. Thus, the
department can work with the domestic insurer on rehabilitation.
She remarked that most of the cases eventually go to court. She
mentioned the division wants to ensure that the domestic
insurers have proper oversight but the division also would like
them to succeed, to pay claims. She emphasized that when an
insurer enters true liquidation, the company would rarely pay
"100 cents on the dollar." Thus, these changes are good for
consumers.
MS. HALL referred to Section 8 and Section 9 of HB 175, which
relate to uniformity. She stated the compliance officer in a
firm makes certain that the firm complies with all of the
state's statutes as the responsible party. She referred to a
chart, not in members' packets. Ms. Hall applauded the Division
of Insurance for reaching national compliance. She opined that
very few states have reached full compliance with the national
uniform standards, but Alaska has done so. She remarked that
the division has a licensed compliance officer.
3:48:49 PM
MS. HALL related that Section 9 updates the travel insurance
provisions.
MS. HALL referred to page 8 of HB 175, to Section 11, which
would allow the DOI director to order summary suspension of an
agent's license. She related that if protection of the public
requires emergency action the finding is incorporated in an
order. The licensee can request a hearing which must be held
within 20 days and the decision must be issued within 30 days.
She stated that this proceeding would not be under the Office of
Administrative Hearings (OAH), Department of Administration
(DOA). She explained the reason for this is the division had
two instances of fraud last fall. She related a scenario in
which a consumer complained that he/she had purchased insurance
but did not receive the policy. She indicated that an
investigation revealed an agent had collected $27,000 in
premiums, spanning 72 victims of fraud. The criminal prosecutor
has drawn up criminal charges listing 39 felony counts.
However, the person could still retain their license. She
mentioned that in this instance, the individual voluntarily
surrendered their license. She stressed the importance of
amending the statutes to allow the division to revoke licenses.
3:51:22 PM
MS. HALL, in response to Representative Buch, explained that the
division has the authority to revoke a license, but this section
allows the division to immediately revoke a license, and not
have the license stayed by the licensee's request for a hearing.
3:52:25 PM
REPRESENTATIVE HOLMES asked for the rationale for a separate
hearing structure.
MS. HALL addressed the question, stating that the Division of
Insurance has a formal hearing process in Title 21. She related
that she also serves as a hearing officer. She related that the
division has a specific process that supersedes the Office of
Administrative Hearings (OAH) since the division holds specific
hearings. However, she remarked that while some appeals go to
the OHA, the remainder of the division's hearings are conducted
internally following due process.
3:53:20 PM
REPRESENTATIVE HOLMES emphasized her concern to ensure that
these changes will not violate due process rights.
MS. HALL assured Representative Holmes that the language
deserves discussion. She opined that the bill has had thorough
legal reviews by the Department of Law and legislative legal.
She pointed out the OHA has also "signed off" on the provisions.
She stated that the behavior is serious. She related a second
scenario in which an employer reported an employee had taken
premium funds from the employer's safe on two occasions. She
related that the employer brought the employee to the Division
of Insurance and the employee surrendered his/her license. She
opined while the consumer can sue it is not likely that the
consumer will recover the payment. She stated that one statute
states "payment to the agent is payment to the company." She
advised that these matters are infrequent but impact consumers.
3:56:14 PM
REPRESENTATIVE BUCH inquired as to whether investigators are
actively pursuing investigations on behalf of Alaska's
consumers.
MS. HALL answered that with 40,000 licensed agents, and 2,000
insurance companies, it is not possible for investigator to
audit each licensee. She offered that the division has a
variety of methods to ensure oversight and to meet the statutory
requirements. She opined that the DOI does not have resources
to audit every one of the licensees and frequently rely on
complaints.
MS. HALL, in response to Representative Buch stated that she was
not sure how to answer his question about the industry growth.
She related that in 2003, the state had 14,000 agents and now
there are 40,000. She pointed out that the state has
approximately the same number of insurance companies, but only
4,000 are resident agents. She mentioned that the rest are
nonresident so the primary regulator is elsewhere. She offered
her belief that the division is okay.
4:00:17 PM
REPRESENTATIVE BUCH inquired as to whether it is unusual to have
five times the growth in the industry over a five-year period.
MS. HALL offered one explanation for the increase in licensees
is a new requirement that people who sell and solicit insurance
must be licensed. She related that individual employees in call
centers were not required to be licensed but now must be
licensed. She remarked that 40,000 people in Alaska are not
actively selling insurance. In further response to
Representative Buch, Ms. Hall offered another example of the
insurance industry growth. She stated that if a person works
for an auto dealership and sells a protection policy plan, the
person must be licensed. She stressed that the division's goal
is compliance and strives to educate the public and insurers.
4:03:48 PM
CHAIR OLSON asked the amount of premium tax that is generated in
one year.
MS. HALL related that the division has a premium tax auditor,
and based on the premium tax the estimate for 2009 is $50
million. She explained that a portion of the tax directly funds
workers' compensation. She highlighted that the figure does not
include fees which the Division of Insurance collects for
regulating entities, which she estimated at $10 million.
Therefore, the total collected would be approximately $60
million for FY 09, she stated.
4:05:47 PM
CHAIR OLSON pointed out that the division generates a
significant amount of money for the general fund.
MS. HALL offered that the agency is a receipts-based agency.
She opined that the division is generally in the top three or
four sources for generating money to the general fund.
MS. HALL, in response to Representative Holmes, stated that the
division's budget is approximately $6.9 million.
4:06:51 PM
MS. HALL referred to Section 17, on page 10 of HB 175. She
related that the top complaint the office receives is the cost
of health insurance, either the high cost of health insurance
cost or that the reimbursement is not sufficient. She explained
this section requires a wellness program must follow the federal
HIPPA requirements. She stated that the provision will allow a
health care provider to encourage wellness programs to offer
rewards to encourage wellness programs. The rationale is to
reduce health claims and the reward is not considered a rebate.
MS. HALL, in response to Representative Holmes explained that a
rebate is an inducement to buy insurance, or is an unfair
discriminatory premium. She related the incentive would be for
participating in a walking program and when 50 percent of the
employees participate, the employer received credit on the
premium.
MS. HALL related that the changes to Section 24 establish the
eligibility for high risk pool which uses the same eligibility
as the Permanent Fund Dividend program criteria.
4:09:58 PM
MS. HALL referred to Sections 25, which she stated is a
reiteration of the priority of distribution claims which are
paid in what is equivalent to a bankruptcy. She explained that
insurance companies do not undergo bankruptcy, but are placed
into liquidation proceedings with the receiver, which is
generally the DOI director.
4:11:31 PM
MS. HALL referred to Section 26, relating to the administration
of loss reimbursement policies. She offered a scenario in which
an insurance company must pay first dollar claims for claims
under a workers' compensation policy. She explained that the
insurer would retain $100,000 of the risk of the workers'
compensation claims. The insurance company would still pay the
claim, the injured worker is assured the claim, but the employer
must repay the insurance company the $100,000. She related that
the repayment is not currently addressed in statute in the case
of liquidation. She indicated that this section outlines the
process. She pointed out that this guarantees for an employer
who has the reimbursement obligation, the collateral in the form
of a letter of credit or a cash deposit can be "tapped" by
either the receiver or the guaranty fund. The guaranty fund
would then pay the claim on behalf of the insolvent insurer.
She stressed the goal is that in instances in which the employer
owes the guaranty fund, that the guaranty fund needs to have the
ability to collect the money owed.
4:14:29 PM
REPRESENTATIVE BUCH inquired as to how many insolvencies Ms.
Hall has experienced in her tenure as the director of the
Division of Insurance (DOI).
MS. HALL answered she has not experienced any domestic
insolvencies, but the division experienced a workers'
compensation insolvency, and the guaranty fund did not have
sufficient funds to pay claims. She stated that the DOI needs
to be prepared.
4:15:32 PM
MS. HALL referred to page 19 of HB 175, to proposed AS
21.78.328, which relates to early access disbursements. She
related that in the previous scenario, the estate of insolvent
insurer, with the court's approval, disbursed funds to the
guaranty. She explained that this provision requires a receiver
to apply to the court to make the payments. She offered that
the division does not currently have the requirement. She
stressed the importance of the guaranty fund having the
mechanisms in place to obtain payment in the case of insolvent
insurers. She characterized this section as updating the
rehabilitation and liquidation statutes.
4:17:02 PM
MS. HALL referred to page 21 of HB 175, to proposed AS
21.85.100. She indicated this provision requires that the self-
funded health care entities that are known as multiple employer
welfare arrangements must adhere to the administration of
deposits statutes. She pointed out two things that were added
to the hospital and medical service corporation. First, the
statutes that relate to representations on applications apply to
these entities. Second, the federal law requires that the
guaranteed renewability of individual health care insurance is
applicable, as well.
REPRESENTATIVE HOLMES referred to page 12, line 23 of HB 175, to
Section 22, which refers to the supplemental plans for Medicare.
She asked for clarification of the changes.
MS. HALL stated that this section would allow the high risk plan
to have more flexibility in the plan that it offers to Medicare
eligible individuals.
REPRESENTATIVE HOLMES related her understanding that the
intention is not to reduce options. She opined that the state
already has a hard time with Medicare coverage and she wanted to
be certain Medicare options were not reduced.
MS. HALL said, "Absolutely not." She offered that AS 21.55.100
(b) refers to the "state plan" which is the high risk pool known
as the Alaska Comprehensive Health Insurance Association
(ACHIA).
4:21:21 PM
CHAIR OLSON announced that he would hold open the public
testimony on HB 175.
HB 78-EXTEND BOARD OF PUBLIC ACCOUNTANCY
4:21:36 PM
CHAIR OLSON announced that the next order of business would be
HOUSE BILL NO. 78, "An Act extending the termination date of the
Board of Public Accountancy; and providing for an effective
date."
4:22:20 PM
KONRAD JACKSON, Staff, Representative Kurt Olson, Alaska State
Legislature, and as staff to the House Labor and Commerce
Standing Committee, sponsor of HB 78, stated that the bill would
extend the Board of Public Accountancy and noted the auditors
recommended the board be extended for four years.
4:23:35 PM
PAT DAVIDSON, Legislative Auditor, Division of Legislative
Audit, Alaska State Legislature, explained to members that the
audit for the Board of Public Accountancy was contracted out.
She explained that the Division of Legislative Audit's office is
staffed with many certified public accountants (CPAs). Thus,
the auditors were not considered independent and a private
consultant was hired to conduct the audit. The consultant used
the criteria in statute, and as Mr. Jackson indicated the audit
recommends that the Board of Public Accountancy be extended for
four years. She pointed out that the board is working to change
how it operates with less oversight by the board, and more
oversight by the national organization. Therefore, the auditors
recommended a shorter extension time for the board to ensure
public interest is served.
MS. DAVIDSON elaborated that the audit recommended board member
terms be filled more timely. Secondly, the board is financially
self-supporting, and the auditors found that a surplus was
increasing. Thus, the auditors recommended that license fees
should be reduced. Finally, in reviewing the investigative
efforts, auditors found periods of inactivity on some of the
investigations and auditors found the tracking mechanism
associated with the investigative software is not very good.
She opined that the investigators need better software to better
enable them to track case management on investigations.
4:26:42 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on HB 78.
4:26:53 PM
REPRESENTATIVE LYNN moved to report HB 78 out of committee with
individual recommendations and the accompanying fiscal note.
There being no objection, HB 78 was reported from the House
Labor and Commerce Standing Committee.
4:27:20 PM
The committee took an at-ease from 4:27 p.m. to 4:28 p.m.
HB 86-EXTENDING VETERINARY BOARD
4:28:55 PM
CHAIR OLSON announced that the final order of business would be
HOUSE BILL NO. 86, "An Act extending the termination date of the
Board of Veterinary Examiners; and providing for an effective
date."
4:29:02 PM
KONRAD JACKSON, as staff to the House Labor and Commerce
Standing Committee, sponsor of HB 86, explained that HB 86 would
extend the Board of Veterinary Examiners. He related that the
auditor's recommendations were to extend the Board of Veterinary
Examiners to June 30, 2017. The auditors had similar comments
to the last bill, that board member vacancies should be filled
more timely and that license fees should be reduced.
4:29:50 PM
PAT DAVIDSON, Legislative Auditor, explained that HB 86 would
extend the Board of Veterinary Examiners to June 30, 2017. She
related the auditors found that the board is serving the public
interest in terms of its mission. The legislative auditors made
two recommendations, that board member vacancies should be
filled timely to enable the board to conduct its work. And that
financially, a surplus has been growing and that license fees
should be reduced, she related.
MS. DAVIDSON, in response to Representative Holmes, answered
that board members are appointed by the governor.
4:31:16 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on HB 86.
4:32:27 PM
REPRESENTATIVE LYNN moved to report HB 86 out of committee with
individual recommendations and the accompanying fiscal note.
There being no objection, HB 86 was reported from the House
Labor and Commerce Standing Committee.
4:32:49 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:32 p.m.