SB 157: "An Act establishing the Sunrise Review Board; relating to review of proposed legislation relating to authorization to engage in the practice of a profession or occupation; and providing for an effective date."
00 SENATE BILL NO. 157 01 "An Act establishing the Sunrise Review Board; relating to review of proposed 02 legislation relating to authorization to engage in the practice of a profession or 03 occupation; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 LEGISLATIVE FINDINGS. The legislature finds that it is in the interest of the state 08 to promote economic development and job growth by lowering barriers to entry created by 09 professional and occupational licensure whenever possible, to prevent barriers to entry for 10 professional and occupational licensure, to encourage as many competent practitioners as 11 possible to practice in the state, and to allow as much competition and third-party regulation 12 as possible to govern professions and occupations. 13 * Sec. 2. AS 08.02 is amended by adding new sections to read: 14 Article 3A. Sunrise Review Board.
01 Sec. 08.02.200. Board established. (a) The Sunrise Review Board is 02 established in the department. The board shall meet at the call of the chair. The board 03 may meet in person, telephonically, or by electronic means. 04 (b) The board consists of seven members, as follows: 05 (1) the director of the division in the Department of Commerce, 06 Community, and Economic Development responsible for corporations and business 07 and professional licensing, or the director's designee, who shall serve as chair; 08 (2) the director of the division in the Department of Health responsible 09 for public health, or the director's designee; 10 (3) an employee in the division of the Department of Law responsible 11 for civil cases who has a background in fraud or consumer protection, appointed by 12 the attorney general; 13 (4) the director of the division in the Department Labor and Workforce 14 Development responsible for standards and safety, or the director's designee; 15 (5) an employee who conducts research in the Department of Labor 16 and Workforce Development, appointed by the commissioner of labor and workforce 17 development; 18 (6) a public member with experience in business or accounting, 19 appointed by the governor; 20 (7) a public member with experience in health and safety, appointed by 21 the governor. 22 (c) Members of the board serve without compensation but are entitled to per 23 diem and travel expenses authorized for boards and commissions under AS 39.20.180. 24 (d) Members appointed under (a)(3) - (7) of this section serve staggered terms 25 of three years or until a successor is appointed. 26 Sec. 08.02.210. Regulations. The board may adopt regulations necessary to 27 implement AS 08.02.200 - 08.02.290. 28 Sec. 08.02.220. Board review of change to licensure. (a) The board shall 29 review legislation proposing a change to licensure that is introduced in the legislature, 30 unless the proposed change has been the subject of a review within the preceding four 31 years.
01 (b) The board shall review other proposed changes to licensure on request. 02 (c) The board may request additional information it finds necessary to 03 complete a review of a proposed change to licensure from a department, board, 04 commission, association, or person requesting a review. 05 Sec. 08.02.230. Request for review. (a) A review of a change to licensure may 06 be requested by 07 (1) the governor, a legislator, or the head of a principal executive 08 department of the state; or 09 (2) a person practicing a profession or occupation, group representing 10 a profession or occupation, or person receiving goods or services from another person 11 in the practice of the other person's profession or occupation, upon payment of a fee 12 set by the board in regulation. 13 (b) A request for review of a proposed change to licensure for a profession or 14 occupation must be submitted in a form prescribed by the board and must 15 (1) identify the requestor and the requestor's relationship to the 16 profession or occupation; 17 (2) describe the proposed change to licensure; the description may 18 include draft legislation; 19 (3) explain the problem the proposed change seeks to address and the 20 reason the change is necessary; 21 (4) describe previous efforts made to address the problem without a 22 change to licensure, including voluntary efforts made by members of the profession or 23 occupation and the reason those efforts were insufficient; 24 (5) explain how the proposed change is the least-restrictive method of 25 regulation to protect the public; 26 (6) describe alternatives to the proposed change that have been 27 considered, the manner in which the alternatives would restrict the practice of the 28 profession or occupation, and the reason the alternatives are not preferred; 29 (7) describe potential benefits to the public that would result from the 30 proposed change; 31 (8) describe potential harm to the public that could result from the
01 proposed change; 02 (9) estimate the costs to the state associated with the proposed change; 03 (10) describe the group that would be affected, including the names of 04 professional or occupational associations that would be affected, and the estimated 05 number of practitioners and businesses that would be affected; 06 (11) document specific harm caused to the public by a lack of 07 regulation, where the proposed change would regulate the practice of a profession or 08 occupation; documentation may include reference to a civil or criminal action against 09 an individual relating to the practice of the profession or occupation in the state; 10 (12) list the state and federal laws enacted in the preceding five years 11 related to the profession or occupation and the reasons the laws were insufficient to 12 carry out the requested change; 13 (13) describe the cost, availability, and appropriateness of training and 14 examination requirements, if the proposed change imposes a new training or 15 examination requirement; 16 (14) review the availability of third-party private certification or 17 regulation; 18 (15) describe anticipated disqualifying conditions and how they serve 19 public safety, commercial, or consumer protection interests, where the proposed 20 change would require a new license; 21 (16) propose a funding mechanism to pay the administrative costs 22 associated with the proposed change. 23 Sec. 08.02.240. Scope of review; recommendations. (a) The board's review 24 of a change to licensure must evaluate 25 (1) the possibility of harm arising from the unregulated practice of the 26 profession or occupation; 27 (2) whether the public needs and reasonably expects to benefit from an 28 assurance of initial and ongoing professional or occupational competence, and whether 29 the public can be adequately protected through other means in a more cost-effective 30 manner; and 31 (3) the anticipated costs to the state, the public, and persons being
01 regulated, and whether the costs are reasonable and can be met. 02 (b) If the board finds a possibility of harm arising from the unregulated 03 practice of the profession or occupation, the board shall recommend the least- 04 restrictive means reasonably necessary to protect the public interests. When possible, 05 the board shall recommend regulating a business or employer instead of an employee, 06 profession, or occupation. The board shall recommend the least-restrictive type of 07 regulation within the following categories: 08 (1) strengthening protections under the deceptive trade practices act if 09 the proposed change is predominantly intended to protect consumers against fraud; 10 (2) requiring periodic inspections if the proposed change is 11 predominantly intended to protect against unsanitary facilities or general health, 12 safety, or welfare concerns; 13 (3) requiring bonding or insurance if the proposed change is 14 predominantly intended to protect against potential damages to third parties; 15 (4) requiring registration with the state if the proposed change is 16 predominantly intended to protect against potential damages by persons who, while 17 physically located in the state, practice a profession or occupation in an organized 18 borough of the state or a census area in an unorganized borough of the state for less 19 than 30 days in a calendar year; 20 (5) offering voluntary state certification, unless suitable private 21 voluntary certification exists, if the proposed change is predominantly intended to 22 protect against asymmetric information between the seller and buyer; 23 (6) developing formal licensure if the proposed change is 24 predominantly intended to protect the immediate health and safety of consumers or the 25 general public and no other adequate system of regulation exists. 26 (c) In this section, "possibility of harm" means a clear potential that the 27 unregulated practice of a profession or occupation could endanger the health, safety, 28 or welfare of the public. 29 Sec. 08.02.250. Reports. (a) For each review of a proposed change to 30 licensure, the board shall prepare a review report. 31 (b) A review report must include
01 (1) the recommended level of regulation, as provided in (c) of this 02 section; 03 (2) a comparison of how other states regulate the profession or 04 occupation; 05 (3) reference to applicable federal statutes and regulations and 06 proposed federal legislation; 07 (4) the cost of regulation to consumers, including an increase or 08 decrease in services available; 09 (5) the cost of regulation to current and future practitioners, including 10 job creation, retention, and wages; 11 (6) the costs to employers; 12 (7) an analysis of each item listed in AS 08.02.230(b)(1) - (16). 13 (c) For a review requested under AS 08.02.230(b), the board shall submit the 14 report to the senate secretary and the chief clerk of the house of representatives, and 15 notify the legislature that the report is available, on or before the first day of 16 (1) the next regular legislative session following the date the request 17 was received by the board for requests received by the board before April 1 of a 18 calendar year; 19 (2) a regular legislative session after the next regular session following 20 the date the request was received by the board for requests received by the board on or 21 after April 1 of a calendar year. 22 (d) The board shall deliver a copy of a report prepared in response to a request 23 under AS 08.02.230(b) to the person that requested the review. 24 Sec. 08.02.290. Definitions. In AS 08.02.200 - 08.02.290, 25 (1) "board" means the Sunrise Review Board established in 26 AS 08.02.200; 27 (2) "change to licensure" means the creation or recognition in statute 28 of a new type of license to engage in a profession or occupation, a change in the scope 29 of practice of a license issued, or the elimination of a license; 30 (3) "license" means a certificate, registration, permit, or other 31 authorization to engage in a profession or occupation issued under this title by the
01 department or a board, commission, or association. 02 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 SUNRISE REVIEW BOARD; STAGGERED TERMS. Notwithstanding 05 AS 08.02.200, added by sec. 2 of this Act, the initial terms of the members of the Sunrise 06 Review Board appointed under AS 08.02.200, added by sec. 2 of this Act, are as follows: 07 (1) the member appointed under AS 08.02.200(3) shall serve a one-year term; 08 (2) the members appointed under AS 08.02.200(4) and (5) shall each serve a 09 two-year term; 10 (3) the members appointed under AS 08.02.200(6) and (7) shall each serve a 11 three-year term. 12 * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 13 read: 14 TRANSITION: REGULATIONS. The Department of Commerce, Community, and 15 Economic Development may adopt regulations necessary to implement the changes made by 16 this Act. The regulations take effect under AS 44.62 (Administrative Procedure Act), but not 17 before the effective date of the law implemented by the regulation. 18 * Sec. 5. Section 4 of this Act takes effect immediately under AS 01.10.070(c). 19 * Sec. 6. Except as provided in sec. 5 of this Act, this Act takes effect January 1, 2025.