Legislature(2017 - 2018)SENATE FINANCE 532

04/03/2018 09:00 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
<Bill Hearing Postponed until 1:30 p.m.>
<Bill Hearing Postponed until 1:30 p.m.>
Scheduled but Not Heard
<Pending Referral>
Heard & Held
Moved HB 274 Out of Committee
Heard & Held
Heard & Held
Heard & Held
Moved HB 280 Out of Committee
Moved HB 302 Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
CS FOR HOUSE BILL NO. 275(FIN)                                                                                                
     "An Act extending the termination  date of the Board of                                                                    
     Massage  Therapists; relating  to  license renewal  and                                                                    
     criminal history record  checks for massage therapists;                                                                    
     and providing for an effective date."                                                                                      
10:24:11 AM                                                                                                                   
REPRESENTATIVE SAM  KITO, SPONSOR, discussed  CSSB 275(FIN).                                                                    
He stated  that the bill  would extend the Board  of Massage                                                                    
Therapists.  He  shared  that the  bill  was  only  recently                                                                    
established. Some  of the  audit recommendations  were being                                                                    
addressed in another piece of  legislation. He remarked that                                                                    
there was  some overlap  between an  amendment in  the bill,                                                                    
and HB  110, which may need  to be resolved. He  stated that                                                                    
the  bill   included  a  reduction   in  the   frequency  of                                                                    
background checks. He remarked  that the initial legislation                                                                    
required the  background check at  every renewal  cycle. The                                                                    
current version changed the background  check to occur every                                                                    
third renewal  cycle to  decrease the  administrative burden                                                                    
and cost.                                                                                                                       
CRYSTAL  KOENEMAN,  STAFF,  REPRESENTATIVE SAM  KITO,  noted                                                                    
that  Legislative  Audit  recommended  a  four-extension  to                                                                    
2022. The other body  recommended a six-year extension based                                                                    
on potential  savings to Legislative  Audit, and  steps that                                                                    
the board  was taking to address  the audit recommendations.                                                                    
The board was  created in 2015, and the  licensing fees were                                                                    
based  on  an  estimate   of  600  massage  therapists.  She                                                                    
announced  that  the  number had  grown  significantly.  She                                                                    
shared that there were 1186 new  licenses at the time of the                                                                    
audit.  She  remarked  that  there  were  over  1400  active                                                                    
licenses in  the last licensing  cycle. She stated  that the                                                                    
division  had  taken  steps to  adjust  the  licensing  fees                                                                    
accordingly.  She  announced  that there  were  three  audit                                                                    
recommendations.  She  reiterated  that  there  was  another                                                                    
piece of legislation, because  some of those recommendations                                                                    
were better addressed through statutory changes.                                                                                
10:27:18 AM                                                                                                                   
KRIS  CURTIS,   LEGISLATIVE  AUDITOR,  ALASKA   DIVISION  OF                                                                    
LEGISLATIVE AUDIT,  discussed the document "A  Sunset Review                                                                    
of  the  Department  of Commerce,  Community,  and  Economic                                                                    
Development, Board of Massage  Therapists (board)," (copy on                                                                    
file). She  remarked that it was  a new board, and  this was                                                                    
its first sunset review. The  audit found that the board was                                                                    
serving   the  public's   interest  in   all  areas   except                                                                    
licensing. She  stated that the audit  found that applicants                                                                    
were  not consistently  issued  licenses  in according  with                                                                    
statutes,  regulations, or  their procedures.  Additionally,                                                                    
there was an  FBI audit that found  improvements were needed                                                                    
to  comply  with  federal standards  over  criminal  history                                                                    
record  information  obtained  as   part  of  the  licensing                                                                    
process. The  audit recommended that the  legislature extend                                                                    
the board for only four  years. She highlighted the features                                                                    
of the audit.                                                                                                                   
10:33:13 AM                                                                                                                   
Senator  von  Imhof  asked about  the  significance  of  the                                                                    
phrase, "additional supervisory resources are needed."                                                                          
Ms. Curtis surmised that the  department's comments may mean                                                                    
that they need additional  financial resources. She deferred                                                                    
to Ms. Chambers.                                                                                                                
SARA  CHAMBERS, DEPUTY  DIRECTOR, DIVISION  OF CORPORATIONS,                                                                    
BUSINESS   AND   PROFESSIONAL   LICENSING,   DEPARTMENT   OF                                                                    
COMMERCE,  COMMUNITY AND  ECONOMIC DEVELOPMENT,  stated that                                                                    
the  program was  anticipated to  have 600  licensees, while                                                                    
here  was currently  1,400. She  remarked that  some of  the                                                                    
unusual requirements  caused some stress. She  remarked that                                                                    
additional staff was needed for the board.                                                                                      
Senator  von  Imhof  wondered whether  there  should  be  an                                                                    
administrative fee  taken from  some of the  board surpluses                                                                    
to help with some of the supervisory positions.                                                                                 
Ms.  Chambers  stated  that the  department  had  found  the                                                                    
procedural  errors that  the additional  oversight (to  make                                                                    
sure procedures  were followed)  was necessary  and extended                                                                    
to board training.                                                                                                              
10:38:07 AM                                                                                                                   
Senator Micciche  wanted to learn what  management of boards                                                                    
and  commissions  cost  comprehensively. He  believed  there                                                                    
were many  costs that were unaccounted  for. He acknowledged                                                                    
that  some  boards  were  much  more  labor  intensive  than                                                                    
Ms. Chambers  was happy  to share  the information  with the                                                                    
committee. She stated that  the department had documentation                                                                    
of indirect expenses.                                                                                                           
Ms. Curtis stated that page 14 standard.                                                                                        
Co-Chair MacKinnon OPENED public testimony.                                                                                     
DAVID  EDWARDS-SMITH, CHAIR,  BOARD  OF MASSAGE  THERAPISTS,                                                                    
KENAI (via teleconference), spoke in support of the bill.                                                                       
Co-Chair MacKinnon  asked how the  board was  complying with                                                                    
the federal findings.                                                                                                           
Mr. Edwards-Smith asked if  Co-Chair MacKinnon was referring                                                                    
to the findings pertaining to fingerprint chain of custody.                                                                     
Co-Chair MacKinnon agreed.                                                                                                      
Mr.  Edwards-Smith affirmed  that the  application had  been                                                                    
changed to inform applicants of the use of fingerprints.                                                                        
10:43:26 AM                                                                                                                   
Co-Chair MacKinnon asked if Mr.  Edwards-Smith had adopted a                                                                    
policy to motivate the department to adopt a policy.                                                                            
Mr.  Edwards-Smith  stated  that the  board  considered  the                                                                    
subject to be a division issue.                                                                                                 
Co-Chair  MacKinnon  wondered  whether  the  department  had                                                                    
addressed  the   FBI  audit  findings  for   the  particular                                                                    
Ms. Chambers  stated that  there were 3  areas that  the FBI                                                                    
identified.  She  announced  that  there  were  channels  of                                                                    
communication which  allowed for hacking into  the system to                                                                    
get access  to certain documentation. She  shared that there                                                                    
was  a new  secure  piece  of technology  that  met the  FBI                                                                    
requirements. She  stated that  the application  concern was                                                                    
corrected  prior  to  the  conclusion   of  the  audit.  The                                                                    
inadequate chain  of custody  was currently  being addressed                                                                    
by working  with other  agencies and  departments to  see if                                                                    
there  were opportunities  to share  resources  to secure  a                                                                    
fingerprint card  to meet  the federal  recommendations. She                                                                    
remarked that  there was no statutory  provision to maintain                                                                    
chain of custody. She remarked  that a statute change may be                                                                    
needed to alter the mandate to process fingerprint cards.                                                                       
10:46:48 AM                                                                                                                   
Co-Chair  MacKinnon  felt  that  it  was  unacceptable.  She                                                                    
remarked  that  the department  had  been  given a  year  to                                                                    
address   the   concerns.  She   felt   that   it  was   the                                                                    
administration's  responsibility  to  comply  with  existing                                                                    
law. She wanted to meet with Ms. Chambers at a later time.                                                                      
Ms. Chambers was  happy to meet with  Co-Chair MacKinnon and                                                                    
other parties to address the concerns.                                                                                          
Co-Chair   MacKinnon   wondered   if   there   was   further                                                                    
information  about why  the  administration  did not  comply                                                                    
with the  chain of custody  issue, other than  the assertion                                                                    
of a change in statute.                                                                                                         
Ms. Chambers replied that the  data was secure. She stressed                                                                    
that the  question was about  whether the  fingerprints were                                                                    
actually the applicant.                                                                                                         
Vice-Chair  Bishop  asserted that  there  were  a myriad  of                                                                    
fingerprinting protocols in different state agencies.                                                                           
10:50:04 AM                                                                                                                   
VOLKER  HRUBY, AMERICAN  MASSAGE THERAPY  ASSOCIATION ALASKA                                                                    
CHAPTER,  ANCHORAGE   (via  teleconference),   testified  in                                                                    
support  of the  bill.  He  noted that  a  recent audit  had                                                                    
identified  suggestions. The  reasons  for establishing  the                                                                    
board were the same reasons  he believed the board should be                                                                    
extended.  He thought  while  the division  did  a good  job                                                                    
providing support  for the  board, it  was not  qualified to                                                                    
perform the  functions of the board.  He referenced comments                                                                    
by Ms. Chambers.                                                                                                                
Mr. Hruby  continued his testimony, and  considered that the                                                                    
board had  done a  good job  implementing statute.  He urged                                                                    
committee members to move the bill from committee.                                                                              
JILL MOTZ,  SELF, MATSU  (via teleconference),  testified in                                                                    
support  of the  bill. She  understood that  the fingerprint                                                                    
issue  was an  issue. The  board had  gathered from  the FBI                                                                    
report that it was necessary to gather more information.                                                                        
Co-Chair   MacKinnon    reminded   that    the   committee's                                                                    
responsibility  to ensure  that  there  was compliance  with                                                                    
state  statutes  and  federal   requirements.  She  did  not                                                                    
consider the bill to be stalled in committee.                                                                                   
Vice-Chair Bishop thought that  the committee was attempting                                                                    
to  protect  the  integrity of  the  therapists  with  their                                                                    
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
10:55:41 AM                                                                                                                   
Vice-Chair Bishop addressed the fiscal note.                                                                                    
Co-Chair  MacKinnon pointed  out  that the  board cost  more                                                                    
than what was reflected on the fiscal note                                                                                      
Co-Chair   MacKinnon  announced   the  due   date  for   the                                                                    
Co-Chair MacKinnon  announced visitors  to the  committee in                                                                    
the audience.                                                                                                                   
HB  275  was  HEARD  and   HELD  in  committee  for  further                                                                    

Document Name Date/Time Subjects
HB273 Legislative Audit 01.19.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 273
HB273 Sponsor Statement 01.19.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 273
HB274 Sponsor Statement 1.29.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 274
HB274 Supporting Document - 2017 Legislative Audit 1.29.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 274
HB 275 01.19.18 Support Letters.pdf SFIN 4/3/2018 9:00:00 AM
HB 275
HB 275 Support Gilmour.docx SFIN 4/3/2018 9:00:00 AM
HB 275
HB275 01.19.18 Opposition Letters.pdf SFIN 4/3/2018 9:00:00 AM
HB 275
HB275 Legislative Audit 10.11.17.pdf SFIN 4/3/2018 9:00:00 AM
HB 275
HB275(FIN) Sponsor Statement.pdf SFIN 4/3/2018 9:00:00 AM
HB 275
HB278 Sponsor Statement 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 278
HB278 Supporting Document - 2017 Audit 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 278
HB279 Letter of Opposition 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 279
HB279 Letter of Support 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 279
HB279 Sponsor Statement 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 279
HB279 Supporting Document - 2017 Audit 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 279
HB280 Sponsor Statement 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 280
HB280 Supporting Document - 2017 Audit 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 280
HB302 Sponsor Statement.pdf SFIN 4/3/2018 9:00:00 AM
HB 302
Professional Counselors Audit Report.pdf SFIN 4/3/2018 9:00:00 AM
HB 302
HB 279 Senare Finance Testimony Brollini 2.pdf SFIN 4/3/2018 9:00:00 AM
HB 279
HB 278, 275, 278, 279 DCCED Response - Corporations Buisness, and Professional Licensing 040318.pdf SFIN 4/3/2018 9:00:00 AM
HB 278
HB 76 follow up S FIN (DED).pdf SFIN 4/3/2018 9:00:00 AM
HB 76
HB 279 - Brickman Testimony 4.4.2018.pdf SFIN 4/3/2018 9:00:00 AM
HB 279