Legislature(2015 - 2016)BELTZ 105 (TSBldg)

04/14/2015 01:30 PM LABOR & COMMERCE

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 107 INSURANCE; RISK MG'T; HOLDING COMPANIES TELECONFERENCED
Scheduled but Not Heard
+ HB 26 EXTEND CERT. DIRECT-ENTRY MIDWIVES BOARD TELECONFERENCED
Moved SCS HB 26(L&C) Out of Committee
+ HB 41 SPORT FISHING SERVICES TELECONFERENCED
Heard & Held
+ HB 46 WORKFORCE INVESTMENT BOARD VETERAN MEMBER TELECONFERENCED
Moved HB 46 Out of Committee
+ HB 116 EXTEND ALCOHOLIC BEVERAGE CONTROL BOARD TELECONFERENCED
Moved HB 116 Out of Committee
+ HB 178 WORKERS' COMP MEDICAL FEES; DELAY TELECONFERENCED
Moved HB 178 Out of Committee
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
        HB  26-EXTEND CERT. DIRECT-ENTRY MIDWIVES BOARD                                                                     
                                                                                                                                
CHAIR  COSTELLO announced  the consideration  of HB  26. "An  Act                                                               
extending the termination date of  the Board of Certified Direct-                                                               
Entry Midwives; and providing for an effective date."                                                                           
                                                                                                                                
1:31:53 PM                                                                                                                    
LAURA STIDOLPH,  Staff, Representative  Kurt Olson, on  behalf of                                                               
the  prime sponsor,  stated that  HB 26  would extend  the sunset                                                               
date for  the Board  of Certified  Direct-Entry Midwives  to June                                                               
30, 2017.  She explained that  the Division of  Legislative Audit                                                               
conducts  audits  each year  to  determine  if state  boards  and                                                               
commissions should  be reestablished.  The division  reviewed the                                                               
activities  of the  Board of  Certified Direct-Entry  Midwives to                                                               
determine if there is a  demonstrated public need for the board's                                                               
continued  existence and  whether  it has  been  operating in  an                                                               
effective  manner. The  auditors  recommended that  the board  be                                                               
extended two years until June 30, 2017.                                                                                         
                                                                                                                                
1:32:27 PM                                                                                                                    
SENATOR MEYER joined the committee.                                                                                             
                                                                                                                                
MS. STIDOLPH related  that auditors found the  Board of Certified                                                               
Direct-Entry Midwives  has been serving the  public's interest by                                                               
effectively licensing  certified direct-entry midwives  (CDM) and                                                               
apprentices. In addition,  it was found that  the board continues                                                               
to  improve the  profession by  modifying and  adopting midwifery                                                               
regulations to conform to current standards of care.                                                                            
                                                                                                                                
MS. STIDOLPH highlighted that the  auditors had four findings and                                                               
recommendations:  1) the  Department of  Commerce, Community  and                                                               
Economic   Development   (DCCED)    should   immediately   pursue                                                               
disciplinary sanctions for CDM cases  when warranted; 2) increase                                                               
licensing  fees to  eliminate the  board's operating  deficit; 3)                                                               
the   board  should   communicate  certificate   requirements  to                                                               
continuing  education  providers  to facilitate  compliance  with                                                               
centralized  licensing  regulations;  and  4)  the  board  should                                                               
approve  apprentice   permit  applications  in   accordance  with                                                               
statute.                                                                                                                        
                                                                                                                                
1:34:02 PM                                                                                                                    
KRIS  CURTIS, Legislative  Auditor,  Legislative Audit  Division,                                                               
Legislative Agencies and Offices,  stated that the Audit Division                                                               
conducted  an  audit  of  the  Board  of  Certified  Direct-Entry                                                               
Midwives to determine  whether it was serving  the public purpose                                                               
and  concluded overall  that the  board is  serving the  public's                                                               
interest   by   effectively  licensing   certified   direct-entry                                                               
midwives.                                                                                                                       
                                                                                                                                
However,  the  audit found  that  the  Division of  Corporations,                                                               
Business,  and Professional  Licensing  (DCBPL)  staff failed  to                                                               
operate  in   the  public's  interest  by   not  pursuing  timely                                                               
disciplinary   sanctions  related   to  midwife   investigations.                                                               
Because  of this  serious deficiency,  the  audit recommends  the                                                               
board's termination date  be extended only two years  to June 30,                                                               
2017. The  audit made  four recommendations.  The first  and most                                                               
serious  was  to the  commissioner  of  DCCED to  take  immediate                                                               
action to  pursue disciplinary sanctions  for midwife  cases when                                                               
warranted. The  audit found that disciplinary  sanctions were not                                                               
actively  pursued for  four  investigations  that were  completed                                                               
during  the  audit  period.  The  investigations  of  two  people                                                               
concluded  that  disciplinary  sanctions  were  needed.  However,                                                               
DCBPL investigative  staff did not  actively pursue  sanctions to                                                               
protect  the public  safety. The  respondents in  all four  cases                                                               
refused to sign a consent agreement.                                                                                            
                                                                                                                                
Rather  than  file an  accusation  and  pursue an  administrative                                                               
hearing, DCBPL  staff followed alternate  procedures. Two  of the                                                               
four  cases were  forwarded to  the Department  of Law  Office of                                                               
Special Prosecution  and Appeals (OSPA) without  a sufficiency of                                                               
evidence reviewed  by the assistant  attorney general.  Those two                                                               
cases remained at OSPA for  over a year without action. According                                                               
to OSPA those class B  misdemeanor cases are the lowest priority.                                                               
The other  two cases  were held by  DCBPL investigators  with the                                                               
understanding  that they  would  be forwarded  to  OSPA once  the                                                               
other two cases  were resolved. Due to staff  turnover, the audit                                                               
could  not  determine  why  DCBPL  staff  did  not  pursue  civil                                                               
licensing  action   as  required  by  their   standard  operating                                                               
procedures.  At a  minimum, licensing  action  should be  pursued                                                               
concurrently with  criminal action to  ensure that the  public is                                                               
protected.  By not  pursuing  licensing  action, the  respondents                                                               
were allowed to continue to  practice and the public's safety was                                                               
at risk.                                                                                                                        
                                                                                                                                
MS. CURTIS said the audit  makes three additional recommendations                                                               
for  operational  improvements: 1)  DCBPL  and  the board  should                                                               
consult  and increase  licensing  fees to  eliminate the  board's                                                               
$115,000  operating  deficit;  2) the  board  should  communicate                                                               
certificate  requirements to  continuing  education providers  to                                                               
facilitate     compliance      with     centralized     licensing                                                               
recommendations;  and  3)  the board  should  approve  apprentice                                                               
permits  in  accordance  with  statutes.  The  audit  found  that                                                               
permits  were being  approved by  DCBPL staff  but statutes  only                                                               
allow the board to issue the permits.                                                                                           
                                                                                                                                
1:37:31 PM                                                                                                                    
SENATOR STEVENS asked what the usual extension would be.                                                                        
                                                                                                                                
MS. CURTIS  replied the maximum  allowed in statute is  an eight-                                                               
year extension.                                                                                                                 
                                                                                                                                
SENATOR STEVENS asked  what has to be done in  the next two years                                                               
for the board to receive another extension.                                                                                     
                                                                                                                                
MS. CURTIS explained that the next  audit would focus on what has                                                               
been done with the investigative aspects of the board.                                                                          
                                                                                                                                
1:38:50 PM                                                                                                                    
SENATOR  GIESSEL expressed  concern that  4 of  48 licensees  had                                                               
deficiencies.                                                                                                                   
                                                                                                                                
MS. CURTIS  clarified that  some of  the investigations  could be                                                               
related to unlicensed activity.                                                                                                 
                                                                                                                                
SENATOR GIESSEL  questioned how  48 licensees  could make  up the                                                               
deficit. She asked if the auditors have  a plan, or if it will be                                                               
left to the division.                                                                                                           
                                                                                                                                
MS. CURTIS replied the plan will  be left to the division, but it                                                               
is an  ongoing problem.  The 2006 audit  of the  board identified                                                               
that that midwives had the highest fees of any occupation.                                                                      
                                                                                                                                
1:40:11 PM                                                                                                                    
SENATOR STEVENS asked what the fees are.                                                                                        
                                                                                                                                
MS. CURTIS reviewed the fees identified  on page 15 of the audit.                                                               
For FY 14, the Midwife  Initial Certification and Renewal Fee was                                                               
$1,450. The fee was over $2,000 when the 2006 audit was done.                                                                   
                                                                                                                                
SENATOR  STEVENS  asked  what   happens  when  someone  practices                                                               
midwifery without a license.                                                                                                    
                                                                                                                                
MS. CURTIS replied  that falls under the purview  of the division                                                               
of to pursue.                                                                                                                   
                                                                                                                                
1:41:48 PM                                                                                                                    
JANEY HOVENDEN, Director, Division  of Corporations, Business and                                                               
Professional  Licensing, Department  of  Commerce, Community  and                                                               
Economic Development (DCCED), introduced herself.                                                                               
                                                                                                                                
1:42:13 PM                                                                                                                    
SARA  CHAMBERS,  Operations  Manager, Division  of  Corporations,                                                               
Business  and  Professional  Licensing, Department  of  Commerce,                                                               
Community  and Economic  Development (DCCED),  offered to  answer                                                               
questions related to HB 26.                                                                                                     
                                                                                                                                
SENATOR  STEVENS  asked  what   happens  when  someone  practices                                                               
midwifery without a license.                                                                                                    
                                                                                                                                
MS. CHAMBERS explained  that the division goes  through a process                                                               
of  investigation  and discovery  that  involves  either a  board                                                               
member or subject matter expert to  review the facts. If there is                                                               
sufficient  cause for  a violation  the division  would pursue  a                                                               
consent  agreement  that acknowledges  a  violation  and how  the                                                               
person plans to  correct it. That may  include licensure, license                                                               
probation, or  fines. In  many cases  of unlicensed  activity the                                                               
person is  not willing to  work toward an amicable  agreement. In                                                               
those  cases the  division works  with the  Department of  Law to                                                               
file an accusation  of violation of law and  pursue the sanctions                                                               
available to that licensing program.                                                                                            
                                                                                                                                
CHAIR  COSTELLO asked  what  the division's  plan  is to  address                                                               
board deficits.                                                                                                                 
                                                                                                                                
MS.   CHAMBERS  explained   that  the   fees  for   midwives  and                                                               
apprentices have  been increased  since the audit  was initiated.                                                               
The board is aware of the  historical deficit and is working with                                                               
the division  to raise all  the license fees within  the program.                                                               
The division has  prescribed a stair step program to  try to chip                                                               
away  at  the  debt  without it  becoming  overly  burdensome  to                                                               
midwives. She  said the board  recognizes that it  is responsible                                                               
for the  deficit, but it  is difficult because  investigations of                                                               
licensed and unlicensed practice can be a very expensive.                                                                       
                                                                                                                                
1:46:39 PM                                                                                                                    
SENATOR  GIESSEL offered  her understanding  is that  the deficit                                                               
stems from a  large legal case that cost the  board a significant                                                               
amount.                                                                                                                         
                                                                                                                                
MS. CHAMBERS agreed.                                                                                                            
                                                                                                                                
SENATOR GIESSEL  pointed out that  it would help if  boards could                                                               
retain  the penalties  that are  levied against  their licensees,                                                               
but  they go  into the  general  fund. She  clarified that  these                                                               
licensees   are  direct-entry   midwives   not  certified   nurse                                                               
midwives.                                                                                                                       
                                                                                                                                
CHAIR  COSTELLO recalled  the discussion  that  if the  penalties                                                               
were  retained  by  the  board it  might  stimulate  interest  in                                                               
pursuing more penalties.                                                                                                        
                                                                                                                                
SENATOR STEVENS asked if midwives work fulltime.                                                                                
                                                                                                                                
MS.  CHAMBERS  replied there  are  both  fulltime and  part  time                                                               
midwives. Responding  to a further  question, she  confirmed that                                                               
the licensing fee is the same  regardless of how much the midwife                                                               
works.                                                                                                                          
                                                                                                                                
1:50:07 PM                                                                                                                    
MS.  CHAMBERS  reported that  since  the  division met  with  the                                                               
auditors,  DCBPL has  reviewed its  quality control  measures and                                                               
investigative  protocols with  the new  chief investigator.  They                                                               
have  worked to  tighten the  standards and  timeframes and  have                                                               
been  working with  the Department  of Law  and OSPA  to use  the                                                               
audit as a tool for  further quality improvement agency wide. The                                                               
cases that the  audit identified are now in  full compliance with                                                               
the stated  protocols. She expressed optimism  about standing the                                                               
test of compliance per auditing standards.                                                                                      
                                                                                                                                
CHAIR COSTELLO asked her to review of the fiscal note.                                                                          
                                                                                                                                
1:52:20 PM                                                                                                                    
MS. CHAMBERS explained that the  fiscal note speaks to the sunset                                                               
of the  board and  reflects the changes  that are  anticipated if                                                               
the board  dissolves. "Since  the sunset  assumes that  the board                                                               
sunsets,  this would  reinitiate what  we're currently  expending                                                               
for travel," she said.                                                                                                          
                                                                                                                                
SENATOR  GIESSEL asked  Ms. Curtis  if she  considered a  shorter                                                               
extension, say one year.                                                                                                        
                                                                                                                                
MS.  CURTIS  replied   she  worked  with  Ms.   Chambers  on  the                                                               
appropriate timeframe and two years  seemed sufficient. She noted                                                               
that  the division  appears  to have  addressed  the issues  more                                                               
quickly than anticipated.                                                                                                       
                                                                                                                                
CHAIR COSTELLO asked  Senator Giessel if she wanted  an update in                                                               
a year.                                                                                                                         
                                                                                                                                
SENATOR  GIESSEL  said  she  would like  an  interim  report,  if                                                               
possible.                                                                                                                       
                                                                                                                                
MS. CURTIS  said the direction  has to come from  the Legislative                                                               
Budget and Audit (LB&A) Committee, but that has been done.                                                                      
                                                                                                                                
SENATOR  GIESSEL  asked  if  that is  best  done  through  intent                                                               
language in the sunset bill or an informal request to the LB&A.                                                                 
                                                                                                                                
MS. CURTIS  said she is  only aware of  it being done  through an                                                               
informal request to the LB&A.                                                                                                   
                                                                                                                                
1:55:42 PM                                                                                                                    
CHAIR COSTELLO found no public testimony and closed it.                                                                         
                                                                                                                                
1:56:12 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
1:57:05 PM                                                                                                                    
CHAIR  COSTELLO reconvened  the  meeting  and recognized  Senator                                                               
Giessel.                                                                                                                        
                                                                                                                                
SENATOR  GIESSEL  offered  a   conceptual  amendment  to  capture                                                               
legislative intent  to request an interim  one-year status update                                                               
from the  Legislative Audit  Division on  the Board  of Certified                                                               
Direct-Entry Midwives.                                                                                                          
                                                                                                                                
1:57:41 PM                                                                                                                    
CHAIR COSTELLO  found no objection and  announced that conceptual                                                               
Amendment 1 is adopted.                                                                                                         
                                                                                                                                
1:57:55 PM                                                                                                                    
SENATOR GIESSEL moved  to report HB 26, 29-LS  0171\A as amended,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
CHAIR COSTELLO  announced that without objection,  SCS HB 26(L&C)                                                               
is  reported   from  the  Senate  Labor   and  Commerce  Standing                                                               
Committee.                                                                                                                      

Document Name Date/Time Subjects
HB 149 am - Sponsor Statement.pdf SL&C 4/9/2015 1:30:00 PM
SL&C 4/14/2015 1:30:00 PM
HB 149
HB 26 - Fiscal Note DCCED.pdf SL&C 4/14/2015 1:30:00 PM
HB 26
HB 26 - Hearing Request.pdf SL&C 4/14/2015 1:30:00 PM
HB 26
HB 26 - Sponsor Statement.pdf SL&C 4/14/2015 1:30:00 PM
HB 26
HB 26 - Supporting Documents - Legislative Audit 6-30-2014.pdf SL&C 4/14/2015 1:30:00 PM
HB 26
HB 26 - Ver. A.pdf SL&C 4/14/2015 1:30:00 PM
HB 26
HB 41 - Fiscal Note F&G 2.pdf SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 - Fiscal Note F&G.pdf SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 - Fiscal Note LAA.pdf SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 - Support Cummings.pdf SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 - Support Haney.pdf SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 - Support JCBOA.pdf SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 - Support Lost in AK.pdf SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 - Support Rum Runners.pdf SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 - Support SEAGO.pdf SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 - Ver. P.A.pdf SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 Explanation of Changes Version P.A.PDF SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 Sectional Analysis (FIN)am.pdf SL&C 4/14/2015 1:30:00 PM
HB 41
HB 41 Sport Fish Sponsor Statement P.A.PDF SL&C 4/14/2015 1:30:00 PM
HB 41
HB 46 - Fiscal Note DMVA.pdf SL&C 4/14/2015 1:30:00 PM
HB 46
HB 46 - Fiscal Note DOLWD.pdf SL&C 4/14/2015 1:30:00 PM
HB 46
HB 46 - Senate Labor & Commerce Hearing Request.pdf SL&C 4/14/2015 1:30:00 PM
HB 46
HB 46 - Sponsor Statement.pdf SL&C 4/14/2015 1:30:00 PM
HB 46
HB 46 - Supporting Documents - Email from Douglas Bowers.pdf SL&C 4/14/2015 1:30:00 PM
HB 46
HB 46 - Supporting Documents - Email from Mr. Russ Black - SFAC Director JBER.pdf SL&C 4/14/2015 1:30:00 PM
HB 46
HB 46 - Supporting Documents - Letter from CH2M Hill.pdf SL&C 4/14/2015 1:30:00 PM
HB 46
HB 46 - Supporting Documents - Resolution from Alaska Veterans Advisory Council.pdf SL&C 4/14/2015 1:30:00 PM
HB 46
HB 46 - Supporting Documents-Letter Russ Black SFAC Director JBER.pdf SL&C 4/14/2015 1:30:00 PM
HB 46
HB 46 - Version A.pdf SL&C 4/14/2015 1:30:00 PM
HB 46
HB 116 - Fiscal Note DCCED.pdf SL&C 4/14/2015 1:30:00 PM
HB 116
HB 116 - Sponsor Statement.pdf SL&C 4/14/2015 1:30:00 PM
HB 116
HB 116 - Supporting Documents - Legislative Audit 05-30-14.pdf SL&C 4/14/2015 1:30:00 PM
HB 116
HB 116 - Ver. A.pdf SL&C 4/14/2015 1:30:00 PM
HB 116
HB 178 - Fiscal Note DOLWFD.pdf SL&C 4/14/2015 1:30:00 PM
HB 178
HB 178 - Sectional Analysis Ver R.pdf SL&C 4/14/2015 1:30:00 PM
HB 178
HB 178 - Sponsor Statement.pdf SL&C 4/14/2015 1:30:00 PM
HB 178
HB 178 - Supporting Documents-HB316 enacted in 2014.PDF SL&C 4/14/2015 1:30:00 PM
HB 178
HB 316
HB 178 - Ver. H.PDF SL&C 4/14/2015 1:30:00 PM
HB 178