ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
April 10, 2014
1:30 p.m.
MEMBERS PRESENT
Senator Mike Dunleavy, Chair
Senator Peter Micciche, Vice Chair
Senator Donald Olson
Senator Bert Stedman
MEMBERS ABSENT
Senator Johnny Ellis
COMMITTEE CALENDAR
SENATE BILL NO. 189
"An Act relating to an exemption from the regulation of
construction contractors."
- MOVED CSSB 189(L&C) OUT OF COMMITTEE
SENATE BILL NO. 193
"An Act relating to bonds required for contractors."
- MOVED SB 193 OUT OF COMMITTEE
HOUSE BILL NO. 241
"An Act extending the termination date of the Board of Marital
and Family Therapy; and providing for an effective date."
- MOVED HB 241 OUT OF COMMITTEE
HOUSE BILL NO. 239
"An Act extending the termination date of the Board of Examiners
in Optometry; and providing for an effective date."
- MOVED HB 239 OUT OF COMMITTEE
HOUSE BILL NO. 240
"An Act extending the termination date of the Board of
Chiropractic Examiners; and providing for an effective date."
- MOVED HB 240 OUT OF COMMITTEE
HOUSE BILL NO. 242
"An Act extending the termination date of the State Physical
Therapy and Occupational Therapy Board; and providing for an
effective date."
- MOVED HB 242 OUT OF COMMITTEE
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 302(L&C)
"An Act relating to rules of professional conduct for the
profession of public accounting."
- MOVED CSHB 302(L&C) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 189
SHORT TITLE: EXEMPTION: LICENSING OF CONTRACTORS
SPONSOR(s): LABOR & COMMERCE
02/21/14 (S) READ THE FIRST TIME - REFERRALS
02/21/14 (S) L&C
02/25/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/25/14 (S) -- MEETING CANCELED --
03/04/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/04/14 (S) Heard & Held
03/04/14 (S) MINUTE(L&C)
03/18/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/18/14 (S) -- MEETING CANCELED --
03/20/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/20/14 (S) Heard & Held
03/20/14 (S) MINUTE(L&C)
04/10/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 193
SHORT TITLE: CONTRACTORS: BONDS; LICENSING
SPONSOR(s): MICCICHE
02/21/14 (S) READ THE FIRST TIME - REFERRALS
02/21/14 (S) L&C
02/27/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/27/14 (S) -- MEETING CANCELED --
03/04/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/04/14 (S) Scheduled But Not Heard
03/11/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/11/14 (S) -- MEETING CANCELED --
03/13/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/13/14 (S) Scheduled But Not Heard
03/18/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/18/14 (S) -- MEETING CANCELED --
03/20/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/20/14 (S) Heard & Held
03/20/14 (S) MINUTE(L&C)
04/10/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: HB 241
SHORT TITLE: EXTEND BOARD OF MARITAL & FAMILY THERAPY
SPONSOR(s): REPRESENTATIVE(s) REINBOLD
01/21/14 (H) PREFILE RELEASED 1/10/14
01/21/14 (H) READ THE FIRST TIME - REFERRALS
01/21/14 (H) L&C, FIN
01/29/14 (H) L&C AT 3:15 PM BARNES 124
01/29/14 (H) Moved Out of Committee
01/29/14 (H) MINUTE(L&C)
01/30/14 (H) L&C RPT 4DP
01/30/14 (H) DP: REINBOLD, SADDLER, JOSEPHSON, OLSON
02/11/14 (H) FIN AT 1:30 PM HOUSE FINANCE 519
02/11/14 (H) Heard & Held
02/11/14 (H) MINUTE(FIN)
03/13/14 (H) FIN RPT 8DP
03/13/14 (H) DP: GUTTENBERG, HOLMES, GARA, MUNOZ,
NEUMAN, THOMPSON, COSTELLO, STOLTZE
03/13/14 (H) FIN AT 8:30 AM HOUSE FINANCE 519
03/13/14 (H) Moved Out of Committee
03/13/14 (H) MINUTE(FIN)
03/20/14 (H) TRANSMITTED TO (S)
03/20/14 (H) VERSION: HB 241
03/21/14 (S) READ THE FIRST TIME - REFERRALS
03/21/14 (S) L&C, FIN
04/10/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: HB 239
SHORT TITLE: EXTEND BOARD OF EXAMINERS IN OPTOMETRY
SPONSOR(s): REPRESENTATIVE(s) REINBOLD
01/21/14 (H) PREFILE RELEASED 1/10/14
01/21/14 (H) READ THE FIRST TIME - REFERRALS
01/21/14 (H) L&C, FIN
01/29/14 (H) L&C AT 3:15 PM BARNES 124
01/29/14 (H) Moved Out of Committee
01/29/14 (H) MINUTE(L&C)
01/30/14 (H) L&C RPT 5DP
01/30/14 (H) DP: HERRON, REINBOLD, SADDLER,
JOSEPHSON, OLSON
02/11/14 (H) FIN AT 1:30 PM HOUSE FINANCE 519
02/11/14 (H) Heard & Held
02/11/14 (H) MINUTE(FIN)
03/13/14 (H) FIN RPT 8DP
03/13/14 (H) DP: GUTTENBERG, HOLMES, MUNOZ, NEUMAN,
THOMPSON, GARA, COSTELLO, STOLTZE
03/13/14 (H) FIN AT 8:30 AM HOUSE FINANCE 519
03/13/14 (H) Moved Out of Committee
03/13/14 (H) MINUTE(FIN)
03/20/14 (H) TRANSMITTED TO (S)
03/20/14 (H) VERSION: HB 239
03/21/14 (S) READ THE FIRST TIME - REFERRALS
03/21/14 (S) L&C, FIN
04/10/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: HB 240
SHORT TITLE: EXTEND BOARD OF CHIROPRACTIC EXAMINERS
SPONSOR(s): REPRESENTATIVE(s) REINBOLD
01/21/14 (H) PREFILE RELEASED 1/10/14
01/21/14 (H) READ THE FIRST TIME - REFERRALS
01/21/14 (H) L&C, FIN
01/29/14 (H) L&C AT 3:15 PM BARNES 124
01/29/14 (H) Moved Out of Committee
01/29/14 (H) MINUTE(L&C)
01/30/14 (H) L&C RPT 4DP
01/30/14 (H) DP: REINBOLD, SADDLER, JOSEPHSON, OLSON
02/11/14 (H) FIN AT 1:30 PM HOUSE FINANCE 519
02/11/14 (H) Heard & Held
02/11/14 (H) MINUTE(FIN)
03/13/14 (H) FIN RPT 8DP
03/13/14 (H) DP: GUTTENBERG, HOLMES, MUNOZ, NEUMAN,
THOMPSON, GARA, COSTELLO, STOLTZE
03/13/14 (H) FIN AT 8:30 AM HOUSE FINANCE 519
03/13/14 (H) Moved Out of Committee
03/13/14 (H) MINUTE(FIN)
03/21/14 (H) TRANSMITTED TO (S)
03/21/14 (H) VERSION: HB 240
03/24/14 (S) READ THE FIRST TIME - REFERRALS
03/24/14 (S) L&C, FIN
04/10/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: HB 242
SHORT TITLE: EXTEND PT & OCCUPATIONAL THERAPY BOARD
SPONSOR(s): REPRESENTATIVE(s) REINBOLD
01/21/14 (H) PREFILE RELEASED 1/10/14
01/21/14 (H) READ THE FIRST TIME - REFERRALS
01/21/14 (H) L&C, FIN
01/31/14 (H) L&C AT 3:15 PM BARNES 124
01/31/14 (H) -- MEETING CANCELED --
02/03/14 (H) L&C AT 3:15 PM BARNES 124
02/03/14 (H) Moved Out of Committee
02/03/14 (H) MINUTE(L&C)
02/05/14 (H) L&C RPT 5DP
02/05/14 (H) DP: MILLETT, HERRON, REINBOLD,
JOSEPHSON, OLSON
02/11/14 (H) FIN AT 1:30 PM HOUSE FINANCE 519
02/11/14 (H) Heard & Held
02/11/14 (H) MINUTE(FIN)
03/13/14 (H) FIN RPT 8DP
03/13/14 (H) DP: GUTTENBERG, HOLMES, GARA, MUNOZ,
NEUMAN, THOMPSON, COSTELLO, STOLTZE
03/13/14 (H) FIN AT 8:30 AM HOUSE FINANCE 519
03/13/14 (H) Moved Out of Committee
03/13/14 (H) MINUTE(FIN)
03/21/14 (H) TRANSMITTED TO (S)
03/21/14 (H) VERSION: HB 242
03/24/14 (S) READ THE FIRST TIME - REFERRALS
03/24/14 (S) L&C, FIN
04/10/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: HB 302
SHORT TITLE: PUBLIC ACCOUNTANTS
SPONSOR(s): REPRESENTATIVE(s) THOMPSON
02/10/14 (H) READ THE FIRST TIME - REFERRALS
02/10/14 (H) L&C
03/05/14 (H) L&C AT 3:15 PM BARNES 124
03/05/14 (H) -- MEETING CANCELED --
03/28/14 (H) L&C AT 3:15 PM BARNES 124
03/28/14 (H) Moved CSHB 302(L&C) Out of Committee
03/28/14 (H) MINUTE(L&C)
03/31/14 (H) L&C RPT CS(L&C) NT 3DP 3NR
03/31/14 (H) DP: SADDLER, JOSEPHSON, OLSON
03/31/14 (H) NR: CHENAULT, HERRON, JOHNSON
04/02/14 (H) TRANSMITTED TO (S)
04/02/14 (H) VERSION: CSHB 302(L&C)
04/02/14 (S) READ THE FIRST TIME - REFERRALS
04/02/14 (S) L&C
04/10/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
STEVE RICCI, Aide
Senate Labor & Commerce Committee
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the changes in Version O for SB
189.
JAMES SQUYRES, representing himself
Delta Junction, Alaska
POSITION STATEMENT: Testified in opposition to SB 189.
PAMELA GOODE, representing herself
Delta Junction, Alaska
POSITION STATEMENT: Testified in opposition to SB 189.
JEFF HALL, representing himself
Palmer, Alaska
POSITION STATEMENT: Testified in support of the original version
of SB 189.
PATRICK DALTON, representing himself
Delta, Alaska
POSITION STATEMENT: Expressed concern with SB 189.
SARA CHAMBERS, Director
Division of Corporations, Business and Professional Licensing
Department of Commerce, Community and Economic Development
Juneau, Alaska
POSITION STATEMENT: Provided information and answered questions
related to SB 189 and HB 241.
MINDY ROWLAND, Staff
Senator Peter Micciche
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided information on SB 193 on behalf of
the sponsor.
JOHN MACKINNON, Executive Director
Association of General Contractors of Alaska
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 193.
REPRESENTATIVE LORA REINBOLD
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 239, HB 240 and HB 241 and HB
242.
KRIS CURTIS, Legislative Auditor
Legislative Audit Division
Legislative Agencies and Offices
Juneau, Alaska
POSITION STATEMENT: Presented the audit findings and
recommendations during the discussions of HB 239, HB 240, HB
241, and HB 242.
CRYSTAL KOENEMAN, Staff
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented information on HB 241 on behalf of
the sponsor.
LYNETTE BERGH, Staff
Representative Steve Thompson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 302 on behalf of the sponsor.
KAREN TARVER, Chair
Alaska Board of Public Accountancy
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Answer questions related to HB 302.
ACTION NARRATIVE
1:30:19 PM
CHAIR MIKE DUNLEAVY called the Senate Labor and Commerce
Standing Committee meeting to order at 1:30 p.m. Present at the
call to order were Senators Micciche, Stedman, Olson, and Chair
Dunleavy.
SB 189-EXEMPTION: LICENSING OF CONTRACTORS
1:31:08 PM
CHAIR DUNLEAVY announced the consideration of SB 189. "An Act
relating to an exemption from the regulation of construction
contractors." He noted that this was the third hearing and there
was a committee substitute (CS).
1:31:15 PM
SENATOR MICCICHE moved to adopt the work draft CS for SB 189,
labeled 28-LS1322\O, as the working document.
CHAIR DUNLEAVY objected for discussion purposes.
1:31:43 PM
STEVE RICCI, Aide, Senate Labor & Commerce Committee, presented
the changes in Version O for SB 189. He explained that the
changes to the exemption of who is a contractor in AS
08.18.161(12) are confined to those who live in a home rule,
first class, or second class borough, or unified municipality.
The language in this paragraph was further amended to recognize
that it's not unusual for Alaskans to leave a portion of a
project unfinished. The phrase "after the period of construction
ends" was amended to say "after the structure is completed for
its intended purpose" thereby removing the ambiguity as to
whether construction is complete. If the person is occupying the
home, the assumption is that it's being used for its intended
purpose regardless of the fact that the home may still be
covered in Tyvek instead of siding.
CHAIR DUNLEAVY removed his objection.
MR RICCI reminded members of the purpose of SB 189. It addresses
the issue that a growing number of individuals are exploiting
the owner-builder exemption in AS 08.18.161 to avoid the
licensing, bonding, and insurance requirements that apply to
contractors. Under current statute the exemption under paragraph
(12) provides that an owner who acts as their own contractor may
construct one home, duplex, triplex, four-plex, or commercial
building every two years. The bill refines this by adding that
someone can sell earlier if they demonstrate to the satisfaction
of the [Department of Commerce, Community and Economic
Development (DCCED)] that an earlier sale is not intended to
circumvent the requirements under this chapter. The intention is
to capture those who are building for income purposes.
SENATOR OLSON asked about the unorganized borough.
MR. RICCI replied there will be not changes for the individuals
living in unorganized boroughs.
CHAIR DUNLEAVY opened public testimony.
1:36:38 PM
JAMES SQUYRES, representing himself, Delta Junction, Alaska,
stated that he and a number of others just received a copy of
the most recent version of SB 189 and there wasn't much time to
review it. He noted that this bill was just scheduled today and
a lot of people who might want to testify either couldn't
arrange their schedule on such short notice or didn't have time
to prepare an appropriate response. He requested the committee
allow more time for people to understand the bill and how it
would affect them.
MR. SQUIRES expressed concern about the unintended consequences
because he reads the exemption in paragraph (12) to now apply to
homes in the unorganized borough and not in the organized
borough. He also pointed out that owner-builders invest their
own capital which is a different relationship than a contractor
who is using capital from another source. This burdens the
owner-builder. He suggested that this matter should be handled
at the borough level and further suggested that the bill raises
constitutional issues.
1:40:43 PM
PAMELA GOODE, representing herself, Delta Junction, stated
agreement with Mr. Squire that the bill was noticed at the 11th
hour and for that reason alone it should be postponed. She
described some of the language in the sponsor statement as
offensive and questioned the notion of the state protecting
consumers. She offered her perspective that the government
should stay out.
1:43:07 PM
JEFF HALL, representing himself, Palmer, Alaska, said he's a
homebuilder in Palmer who supports the original version of SB
189. He maintained that the owner-builder exemption should be
applied statewide.
1:44:32 PM
PATRICK DALTON, representing himself, Delta Junction, Alaska,
expressed concern that SB 189 limits a person's free use of
their private property when it sets parameters on when they can
sell their home. He questioned the broad application because
many people in the organized areas of the state are in very
remote locations living out the Alaskan dream of building their
own home. He concluded that this matter should be addressed at
the borough level.
1:49:02 PM
SENATOR MICCICHE asked Mr. Ricci to clarify that the unorganized
borough is no longer included in this exemption.
MR. RICCI stated that the limitation to selling one home every
two years, only applies to construction in a home rule, first
class, or second class borough or unified municipality. The
additions to the exemption in paragraph (12) only apply in those
specific areas. Owners in the unorganized borough are held to
existing statute.
SENATOR MICCICHE summarized that licensing and bonding are a
state responsibility as opposed to building codes that are
adopted by a municipality.
MR. RICCI confirmed that the [Department of Commerce, Community
and Economic Development (DCCED)] does set licensing and bonding
requirements.
1:50:55 PM
SARA CHAMBERS, Director, Division of Corporations, Business and
Professional Licensing, Department of Commerce, Community and
Economic Development (DCCED), clarified for the record that the
Department of Commerce, Community and Economic Development
(DCCED) handles licensing and bonding matters.
SENATOR MICCICHE asked Ms. Chambers to confirm that this is a
state agency.
MS. CHAMBERS explained that the legislature establishes
statewide licensing and bonding requirements and DCCED
implements these through regulations.
MR. RICCI, responding to a question from the Chair, confirmed
that the CS was delivered to committee members a few hours ago
and it was posted on BASIS. Staff was informed of the changes
before Version O was released.
CHAIR DUNLEAVY found no further questions or comments and
solicited a motion.
1:52:31 PM
SENATOR MICCICHE moved to report CS for SB 189, Version O, from
committee with individual recommendations and attached fiscal
note(s).
CHAIR DUNLEAVY announced that without objection CSSB 189(L&C)
moved from the Senate Labor & Commerce Standing Committee.
1:53:13 PM
At Ease
SB 193-CONTRACTORS: BONDS; LICENSING
1:54:35 PM
CHAIR DUNLEAVY reconvened the meeting and announced the
consideration of SB 193. "An Act relating to bonds required for
contractors." This was the third hearing.
1:54:39 PM
MINDY ROWLAND, Staff, Senator Micciche, Alaska State
Legislature, Juneau, Alaska, sponsor of SB 193, reminded the
committee that the bill increases the bonding for contractors to
reflect inflation since the amounts were set in the early 1980s.
Bonding amounts will be increased as follows:
General contractors $25,000
Residential endorsement Contractors $20,000
Mechanical or Specialty Contractors $10,000
Handyman Contractors performing minimal work $ 5,000
These bonds provide recourse for consumers in the event of a
default or faulty work, and the Department of Law supports the
increases. She clarified that the handyman provision does not
apply to nonprofessional workers and reported that the sponsor
has heard no opposition to the bill.
CHAIR DUNLEAVY opened public testimony.
1:58:00 PM
JOHN MACKINNON, Executive Director, Association of General
Contractors of Alaska, Anchorage, Alaska, described SB 193 as a
consumer protection bill that has wide support among the various
construction trade associations in the state. It provides
recourse for a property owner when a contractor doesn't perform
properly and for a vender when a contractor doesn't pay their
bill. The bonding rates were established in 1982 and the bill
provides an inflation adjustment.
CHAIR DUNLEAVY closed public testimony. Finding no further
questions or comments, he solicited a motion.
1:59:59 PM
SENATOR MICCICHE moved to report SB 193, Version N, from
committee with individual recommendations and attached fiscal
note(s).
CHAIR DUNLEAVY announced that without objection, SB 193 was
reported from the Senate Labor and Commerce Standing Committee.
2:00:35 PM
At Ease
HB 241-EXTEND BOARD OF MARITAL & FAMILY THERAPY
2:01:42 PM
CHAIR DUNLEAVY reconvened the meeting and announced the
consideration of HB 241. "An Act extending the termination date
of the Board of Marital and Family Therapy; and providing for an
effective date."
2:01:46 PM
REPRESENTATIVE LORA REINBOLD, Alaska State Legislature Juneau,
Alaska, sponsor of HB 241, stated that the bill extends the
termination date of the Board of Marital and Family Therapy
(BMFT) until June 30, 2018, based on an audit by the Division of
Legislative Audit. The auditors reviewed the activities of this
board and concluded that the board should be extended for just
four years because the board did not fully address two audit
recommendations in the previous sunset audit. The first
recommendation was to develop a strategy to address the need for
distance therapy and distance supervision. The second
recommendation was for the Office of the Governor and the board
to work together to fill vacant board seats in a timely manner.
Working with the Department of Law, the board determined that
any changes to the distance therapy and distance supervision
must be made statutorily. The board is working on drafting
legislation to address this issue and it will likely be
introduced next legislative session. The Office of the Governor
has also appointed members to the vacant seats.
REPRESENTATIVE REINBOLD stated that the Division of Legislative
Audit made a new recommendation for the Department of Commerce,
Community and Economic Development (DCCED) to continue efforts
to improve the investigative case management system integrity
and confidentiality. She concluded that the Board of Marital and
Family Therapy is operating in the best interest of the public
to protect and promote public health, welfare, and the safety of
Alaskans.
2:04:07 PM
KRIS CURTIS, Legislative Auditor, Legislative Audit Division,
Legislative Agencies and Offices, Juneau, Alaska, stated that
the agency conducted an audit of the Board of Marital and Family
Therapy and issued a report on June 2013. The primary objective
was to determine whether the board is operating in the public's
interest and should be extended. The audit concluded that the
board is serving in the public's interest by effectively
licensing and regulating marital and family therapists and
recommended a four-year extension. This is less than the full
eight-year statutory limit because the board has not fully
addressed a prior recommendation to pursue regulatory changes
necessary to protect the public's interest.
She said that while the board had initiated one regulatory
revision, it had not addressed the need for distance therapy and
distance supervision. Because marital and family therapy
services are not available in many areas of the state, distance
therapy and distance supervision are viewed as solutions to the
lack of local services. During the audit period the board
extensively researched and discussed the topic, but made little
progress moving beyond the discussion phase. The audit therefore
recommends that the board develop a strategy to address the need
for these services.
The audit also includes two additional recommendations. The
first is for the Office of the Governor and the board to work
together to fill vacant board seats. The second recommendation
is for the director of the Division of Corporations, Business
and Professional Licensing to continue efforts to improve the
case management system integrity and confidentiality. She noted
that this same recommendation is being made in all the
occupational board sunset audits for 2013.
MS. CURTIS stated that the division's case management system was
purchased with the expectation that it would be immediately
functional but this has not been the case. DCCED has pursued
improvements and the audit recommendation is to continue those
improvements.
SENATOR MICCICHE asked who reconciles findings and
recommendations with completions because he is noticing a trend
of repeat recommendations.
MS CURTIS replied there is no statutory requirement to follow
up, but the systematic problems related to division support will
be monitored every year.
SENATOR MICCICHE asked if there is a way to query findings.
MS CURTIS replied there is no way to query the status of a
recommendation, but the audit division has compiled the
recommendations for the last two years by department. These are
presented at finance meetings at the request of the chair and
the division hopes to put them online so they're available to
legislators.
SENATOR MICCICHE asked if an audit has ever determined that a
board or commission is no longer serving a public purpose.
MS CURTIS answered yes.
CHAIR DUNLEAVY asked the sponsor to speak to the fiscal note.
REPRESENTATIVE REINBOLD deferred to her staff.
CRYSTAL KIENEMAN, Staff, Representative Lora Reinbold, Alaska
State Legislature, Juneau, Alaska, stated that the fiscal note
shows an annual request of $7,700 for board meeting travel per
diem. The analysis section was revised in the other body to show
a summary of the board's true revenues and expenditures since
they weren't included in the operating line expenditures.
CHAIR DUNLEAVY asked her to review the analysis of revenues and
expenditures.
MS. KOENEMAN reported that the board revenues for FY12 and FY13
were $63,165 and the expenditures were $85,197, resulted in a
biennium deficit of $22,030. However, the cumulative surplus is
$112,195 because there was a carry forward balance from previous
years.
SENATOR MICCICHE questioned why a board surplus isn't zeroed out
through the budgeting process.
MS. KOENEMAN deferred the question.
CHAIR DUNLEAVY asked Ms. Chambers to address the question.
2:12:01 PM
SARA CHAMBERS, Director, Division of Corporations, Business and
Professional Licensing, Department of Commerce, Community and
Economic Development (DCCED), explained that boards and
commissions within Title 8 are allowed to roll forward their
surplus or deficit as a byproduct of the approximation of
licensing fees required in AS 08.01.065.
CHAIR DUNLEAVY opened and closed public testimony and solicited
a motion.
2:13:38 PM
SENATOR MICCICHE moved to report HB 242 from committee with
individual recommendations and attached fiscal note(s).
CHAIR DUNLEAVY announced that without objection HB 242 was
reported from the Senate Labor & Commerce Standing Committee.
2:13:58 PM
At Ease
HB 239-EXTEND BOARD OF EXAMINERS IN OPTOMETRY
2:14:47 PM
CHAIR DUNLEAVY reconvened the meeting and announced the
consideration of HB 239. "An Act extending the termination date
of the Board of Examiners in Optometry; and providing for an
effective date."
2:14:51 PM
REPRESENTATIVE REINBOLD, Alaska State Legislature, Juneau,
Alaska, sponsor of HB 239, explained that this bill extends the
Board of Examiners in Optometry until June 30, 2020. She
deferred further explanation to Ms. Curtis.
2:15:55 PM
KRIS CURTIS, Legislative Auditor, Legislative Audit Division,
Legislative Agencies and Offices, Juneau, Alaska, stated that
the audit division conducted a sunset review of the Board of
Examiners in Optometry. The primary objective was to determine
whether it is serving the public's interest and whether it
should be extended. The overall conclusion was that the board is
serving the public's interest by effectively licensing and
regulating optometrists. The recommendation is to extend the
termination date the maximum eight years. One recommendation for
improvement, which is directed to the Director of the Division
of Corporations, Business and Professional Licensing, is to
continue efforts to improve the investigative case management
system integrity and confidentiality.
CHAIR DUNLEAVY opened and closed public testimony. Finding no
further questions or comments, he solicited a motion.
2:17:06 PM
SENATOR MICCICHE moved to report HB 239 from committee with
individual recommendations and attached fiscal note(s).
CHAIR DUNLEAVY announced that without objection HB 239 was
reported from the Senate Labor & Commerce Standing Committee.
HB 240-EXTEND BOARD OF CHIROPRACTIC EXAMINERS
2:17:24 PM
CHAIR DUNLEAVY announced the consideration of HB 240. "An Act
extending the termination date of the Board of Chiropractic
Examiners; and providing for an effective date."
2:17:38 PM
REPRESENTATIVE LORA REINBOLD, Alaska State Legislature, Juneau,
Alaska, sponsor of HB 240, explained that this bill extends the
termination date of the Board of Chiropractic Examiners until
June 30, 2020. She deferred further explanation to Ms. Curtis.
2:18:08 PM
KRIS CURTIS, Legislative Auditor, Legislative Audit Division,
Legislative Agencies and Offices, Juneau, Alaska, stated that
the audit division conducted a sunset review of the Board of
Chiropractic Examiners. The main objective was to determine
whether the board is serving the public's interest and whether
its termination date should be extended. The audit concluded
that the board is serving the public's interest by effectively
licensing and regulating chiropractors. The recommendation is to
extend the termination date the maximum eight years provided in
statute. The audit makes two recommendations for improving board
operations. The first is to the Office of the Governor to ensure
the statutory requirements for board members are met before
appointment. The audit found that the public member of this
board is a licensed pharmacist, yet statute prohibits public
board members from having a direct financial interest in the
health care industry. The second recommendation, which is
directed to the Director of the Division of Corporations,
Business and Professional Licensing, is to continue efforts to
improve the investigative case management system integrity and
confidentiality.
CHAIR DUNLEAVY commented on the appointment of a pharmacist as a
public member to the board.
MS CURTIS said she believes that the prohibition from having a
direct interest in the health care industry is so that the
member will represent the consumer perspective as opposed to the
business perspective.
CHAIR DUNLEAVY closed public testimony and solicited a motion.
2:19:58 PM
SENATOR MICCICHE moved to report HB 240 from committee with
individual recommendations and attached fiscal note(s).
CHAIR DUNLEAVY announced that without objection HB 240 moved
from the Senate Labor & Commerce Standing Committee.
HB 242-EXTEND PT & OCCUPATIONAL THERAPY BOARD
2:20:21 PM
CHAIR DUNLEAVY announced the consideration of HB 242. "An Act
extending the termination date of the State Physical Therapy and
Occupational Therapy Board; and providing for an effective
date."
2:20:28 PM
REPRESENTATIVE LORA REINBOLD, Alaska State Legislature, Juneau,
Alaska, sponsor of HB 242, explained that this bill extends the
termination date of the Physical and Occupational Therapy Board
until June 30, 2022. She deferred further explanation to Ms.
Curtis.
2:21:06 PM
KRIS CURTIS, Legislative Auditor, Legislative Audit Division,
Legislative Agencies and Offices, Juneau, Alaska, stated that
the audit division conducted an audit of the state Physical
Therapy and Occupational Therapy Board and issued a report dated
June 2013. The purpose of the audit was to determine whether the
agency is operating in the public's interest and whether its
termination date should be extended.
The audit concluded that the board is serving the public's
interest by effectively licensing and regulating physical
therapists, physical therapy assistants, occupational
therapists, and occupational therapy assistants. The division
recommended the board be extended the maximum eight years
provided in statute. The one recommendation directs the Director
of the Division of Corporations, Business and Professional
Licensing to continue efforts to improve the investigative case
management system integrity and confidentiality.
SENATOR MICCICHE asked what the plan is for the investigative
case management system integrity and confidentiality because
it's obviously a common issue.
MS. CURTIS recalled that the director's response to the
recommendation was that the division is working with the vender
to implement improvements to the system.
SENATOR MICCICHE asked if it's a firewall issue.
MS. CURTIS explained that there were conversion, reporting, and
security problems when the new system was implemented in 2010.
Additionally, there are issues with being able to view other
folk's cases and investigators reported the system freezes up
and loses information.
CHAIR DUNLEAVY opened and closed public testimony and solicited
a motion.
2:23:19 PM
SENATOR MICCICHE moved to report HB 242 from committee with
individual recommendations and attached fiscal note(s).
CHAIR DUNLEAVY announced that without objection HB 242 was
reported from the Senate Labor & Commerce Standing Committee.
HB 302-PUBLIC ACCOUNTANTS
2:23:41 PM
CHAIR DUNLEAVY announced the consideration of HB 302. "An Act
relating to rules of professional conduct for the profession of
public accounting."
2:24:18 PM
LYNETTE BERGH, Staff, Representative Steve Thompson, Alaska
State Legislature, Juneau, Alaska, stated that HB 302 was
drafted in response to the Alaska Board of Public Accountancy
(BPA) FY13 annual report recommendations. The bill addresses AS
08.04.080, the professional rules of conduct for the profession
of public accounting. This section of the statute sets the time
that the BPA must notice the adoption of any rule or amendment
and the effective date to the holder of a license or permit. It
amends the number of days for noticing from 60 days to 30 days,
which is in line with the statutory guidelines of the Division
of Corporations, Business, and Professional Licensing.
2:26:18 PM
KAREN TARVER, Chair, Alaska Board of Public Accountancy,
introduced herself and offered to answer questions.
SENATOR MICCICHE asked why this matters.
MS. TARVER replied it's a housekeeping matter to align the
board's regulations and the division's regulations.
2:26:56 PM
At Ease
2:27:32 PM
CHAIR DUNLEAVY reconvened the meeting.
SENATOR STEDMAN summarized that this aligns board and division
requirements.
MS. TARVER agreed; the differences came to light in the annual
report.
CHAIR DUNLEAVY opened and closed public testimony and solicited
a motion.
2:27:59 PM
SENATOR MICCICHE moved to report the CS for HB 302, Version C,
from committee with individual recommendations and attached
fiscal note(s).
CHAIR DUNLEAVY announced that without objection, CSHB 302(L&C)
was reported from the Senate Labor and Commerce Standing
Committee.
2:28:17 PM
There being no further business to come before the committee,
Chair Dunleavy adjourned the Senate Labor & Commerce Standing
Committee meeting at 2:28 p.m.