Legislature(2017 - 2018)GRUENBERG 120

04/16/2018 09:30 AM RULES

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Audio Topic
02:01:12 PM Start
02:01:59 PM SB37|| HB231
02:16:31 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 2:00 pm --
Moved HCS CSSB 37(RLS) Out of Committee
**Streamed live on AKL.tv**
         SB 37-PHARMA BD & STAFF;DRUG DISTRIB/MANUFACT                                                                      
[Contains discussion of HB 231.]                                                                                                
2:01:59 PM                                                                                                                    
CO-CHAIR LEDOUX announced  that the only order  of business would                                                               
be CS FOR SENATE BILL NO.  37(FIN), "An Act relating to the Board                                                               
of Pharmacy;  relating to the  licensing of certain  entities and                                                               
inspection  of  certain  facilities located  outside  the  state;                                                               
relating to  drug supply chain  security; creating a  position of                                                               
executive administrator for the  Board of Pharmacy; and providing                                                               
for an effective date."                                                                                                         
2:02:12 PM                                                                                                                    
REPRESENTATIVE  STUTES   moved  to   adopt  the   proposed  House                                                               
committee  substitute (HCS)  for  CSSB  37, Version  30-LS0191\T,                                                               
Radford,  4/15/18,  as the  working  document.   There  being  no                                                               
objection, Version T was before the committee.                                                                                  
2:02:47 PM                                                                                                                    
MATT GRUENING, Staff, Representative  Louise Stutes, Alaska State                                                               
Legislature,  explained  the changes  that  would  be made  under                                                               
Version T,  as shown in  the explanation of changes  [included in                                                               
the   committee  packet],   which  read   as  follows   [original                                                               
punctuation provided]:                                                                                                          
     Section 8 on Page 6, lines 10 through 21:                                                                                
     Sec 16.43.020 Alaska Commercial Fisheries Entry                                                                            
     Subsection (a) is amended to reduce the number of                                                                          
     commissioners appointed to the Commercial                                                                                  
     Fisheries Entry Commission (CFEC) from three to two.                                                                       
     Subsection (b) is amended to specify that the chair of                                                                     
     the commission shall serve as executive                                                                                    
     director and be responsible for and have authority                                                                         
     over the internal administrative and personnel                                                                             
     practices and procedures of the commission.                                                                                
     Section 9 on Page 6, lines 22 through 25:                                                                                
     AS 16.43.030.                                                                                                              
     Subsection (c) is amended to allow a single                                                                                
     commissioner to exercise the powers and duties of                                                                          
     the commission when there is a vacancy on the                                                                              
     Section 10 on Page 6, lines 26 through 30:                                                                               
     AS 16.43.040 is amended to allow for a quorum of one                                                                       
     commissioner if there is a vacancy on the                                                                                  
     Section 11 on Page 6, line 31 through Page 7, line 4:                                                                    
     AS 16.43.050 is amended with conforming language to                                                                        
     clarify that the commission consists of                                                                                    
     two commissioners instead of three.                                                                                        
     Section 12 on Page 7, lines 5 through 9:                                                                                 
     AS 16.43.060 is amended so that the member serving as                                                                      
     chair will be paid a step in Range 27;                                                                                     
     adjusts the salary range from 27 to 24 for the other                                                                       
     Section 13 on Page 7, lines 10 through 14:                                                                               
     AS 16.43.110 is amended by adding a new subsection                                                                         
     that specifies that in the event of a 1-1 tie                                                                              
     in an adjudicatory hearing, the original decision of                                                                       
     the hearing officer will become the final                                                                                  
     administrative decision of the commission subject to                                                                       
     review by the Superior Court.                                                                                              
     Section 14 on Page 7, lines 15 through 20:                                                                               
     AS 16.43.960(d) is amended to allow for show cause                                                                         
     hearings to be conducted before one commissioner if                                                                        
     there is a vacancy on the commission.                                                                                      
     Section 16 on Page 8, lines 11 through 15:                                                                               
     Adds an applicability clause to uncodified law that                                                                        
     establishes that the salary change outlined in                                                                             
       Section 12 of the bill will apply to commissioners                                                                       
     appointed after the bill's effective date.                                                                                 
2:07:08 PM                                                                                                                    
MR. GRUENING noted two major  changes when comparing Version T to                                                               
the CSSB 37(FIN).  He indicated  that [Version T] would codify in                                                               
statute that  the chair shall  serve as executive director.   The                                                               
other  change would  be  to  establish a  pay  range  27 for  the                                                               
commissioner  serving  as  chair  and  range  24  for  the  other                                                               
commissioner.   He  said  that seems  appropriate  for the  extra                                                               
amount of work  that would be given to these  positions.  He said                                                               
the  Commercial  Fisheries  Entry   Commission  (CFEC)  would  be                                                               
changed to  increase efficiency,  streamline the  commission, and                                                               
save  the state  "a considerable  amount"  [of money].   He  said                                                               
eliminating  one  of  the three  commissioners  designated  under                                                               
current statute would have an  immediate cost savings of $187,000                                                               
annually.    He relayed,  "The  bill  does assign  the  executive                                                               
director   duties  to   the   commissioner   serving  as   chair,                                                               
eliminating the  need to  hire another  position, and  it reduces                                                               
the salary of  the commissioner who is not serving  as chair from                                                               
range  27 to  24,  which  will result  in  an additional  $41,814                                                               
annually beginning in fiscal year 2022 (FY 22).                                                                                 
2:08:35 PM                                                                                                                    
REPRESENTATIVE  EASTMAN referred  to  a previous  version of  the                                                               
legislation, which he  said was HB 231, and  he recollected there                                                               
was talk of unionizing some CFEC employees.                                                                                     
MR. GRUENING  said that portion [of  HB 231] was removed  by [the                                                               
House] Finance [Committee]  and "they're going to  stay in exempt                                                               
status."    He said,  "Through  discussions  with the  CFEC,  the                                                               
majority of the  employees - or at least everyone  that talked to                                                               
people in  Finance - decided that  they really didn't want  to go                                                               
that  route, and  we felt  like we  were going  to honor  the ...                                                               
wishes of the employees at the commission."                                                                                     
2:09:27 PM                                                                                                                    
REPRESENTATIVE STUTES  added that  CFEC employees  were "provided                                                               
with  the  appropriate  personnel  to  describe  the  options  of                                                               
becoming unionized or not, and they unanimously chose not to."                                                                  
2:09:52 PM                                                                                                                    
REPRESENTATIVE EASTMAN asked what is driving Section 14.                                                                        
MR. GRUENING  answered that  in the case  of a  vacancy, hearings                                                               
would still be conducted, even with only one commissioner.                                                                      
2:10:49 PM                                                                                                                    
REPRESENTATIVE  KITO  said  he   understands  the  importance  of                                                               
getting CFEC working  again.  He said he would  not object to the                                                               
proposed  legislation  moving  out  of  committee  but  expressed                                                               
concern with regard to having the  chair of the commission be the                                                               
executive  director.   He  said he  is not  sure  how that  would                                                               
interface  with  employees  being  accountable  to  an  appointed                                                               
person.   He suggested that  in an effort to  ensure consistency,                                                               
there might be a need to look at  this issue again in a few years                                                               
to  determine whether  there are  adequate transition  provisions                                                               
for  executive  administration of  the  agency,  for example,  if                                                               
there is a  situation in which a commissioner has  not served for                                                               
very long and has not been able  to get to the point where he/she                                                               
is able to be the executive director.                                                                                           
2:12:35 PM                                                                                                                    
REPRESENTATIVE STUTES  told Representative  Kito to  rest assured                                                               
she  would  have  one  eye  on  the  Commercial  Fisheries  Entry                                                               
Commission as long as she is in the legislature.                                                                                
2:12:46 PM                                                                                                                    
REPRESENTATIVE  EASTMAN directed  attention to  proposed language                                                               
in Section 8, which read as follows:                                                                                            
     The member  serving as chair  also serves  as executive                                                                
     director of the commission  and, as executive director,                                                                
     is responsible for and has  authority over the internal                                                                
     administrative and  personnel practices  and procedures                                                                
     of the commission.                                                                                                     
REPRESENTATIVE EASTMAN  asked, "Have we verified  that there's no                                                               
... power of the commission being  dealt with in that section?  I                                                               
see  in Section  10 that  a quorum  is required  to exercise  any                                                               
power of the  commission.  I just want to  make sure there wasn't                                                               
any  overlap  between  these  responsibilities  which  we're  now                                                               
giving to the executive director."                                                                                              
MR.  GRUENING answered  that he  does not  believe there  is [any                                                               
overlap].  He  said he thinks the word  "internal" indicates that                                                           
"we're  not talking  about  administrative  practices that  would                                                               
involve  an adjudicatory  hearing -  something to  that nature  -                                                               
because that's not an internal proceeding."                                                                                     
2:13:56 PM                                                                                                                    
REPRESENTATIVE  EASTMAN  commented  that  he did  not  think  the                                                               
commission was  "broken" from a  procedural standpoint  by having                                                               
three commissioners.   He said,  "Now, by  moving down to  two, I                                                               
think we're  seeing some of  ... the logical difficulty  when you                                                               
only  have an  even-number[ed]  commission or  you  might have  a                                                               
vacancy and  only have one  commissioner."  He  expressed concern                                                               
that  the  effort  to  save  costs  by  reducing  the  number  of                                                               
commissioners would have unintended consequences.                                                                               
MR. GRUENING responded  that the decision to cut  back from three                                                               
to two  commissioners was made  after discussion with  the Office                                                               
of  the  Governor,  the  United Fishermen  of  Alaska,  and  then                                                               
commissioners Bruce  Twomley and Fate  Putnam.  He  stated, "With                                                               
the workload  going down  over the commission  and the  fact that                                                               
the position ...  [had] been vacant for some time  anyway, it was                                                               
viewed that  the elimination of that  in statute would be  a cost                                                               
savings that  - with some adjustments  in the bill -  would allow                                                               
them to  continue and actually increase  their efficiency without                                                               
having that extra $187,000 per year price tag attached to it."                                                                  
2:15:32 PM                                                                                                                    
REPRESENTATIVE  CHENAULT said  he does  not think  the commission                                                               
had anything  to do with the  amount of members that  were on the                                                               
board.   He indicated that the  fault lies not in  the board, but                                                               
in the current governor at that time.                                                                                           
2:16:04 PM                                                                                                                    
REPRESENTATIVE CLAMAN  moved to report  HCS CSSB 37,  Version 30-                                                               
LS0191\T,  Radford, 4/15/18,  out  of  committee with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no objection, HCS CSSB 37(RLS) was reported out of committee.                                                                   

Document Name Date/Time Subjects
HCS CSSB 37 Version T.pdf HRLS 4/16/2018 9:30:00 AM
SB 37
HCS CSSB 37(RLS) Explanation of Changes.pdf HRLS 4/16/2018 9:30:00 AM
SB 37
HCS CSSB 37 Legal Memo.pdf HRLS 4/16/2018 9:30:00 AM
SB 37