Legislature(2021 - 2022)ADAMS 519

05/02/2022 01:30 PM House FINANCE

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 190 REGULATORY COMMISSION AK/REFUSE UTILITIES TELECONFERENCED
Scheduled but Not Heard
<Pending Referral>
+ SB 186 EXTEND BOARD OF EXAMINERS IN OPTOMETRY TELECONFERENCED
Heard & Held
+ SB 193 EXTEND BOARD OF CHIROPRACTIC EXAMINERS TELECONFERENCED
Heard & Held
+ SB 151 EXTEND ALCOHOLIC BEVERAGE CONTROL BOARD TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                        May 2, 2022                                                                                             
                         1:31 p.m.                                                                                              
                                                                                                                                
1:31:45 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Merrick called the  House Finance Committee meeting                                                                    
to order at 1:31 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Kelly Merrick, Co-Chair                                                                                          
Representative Dan Ortiz, Vice-Chair                                                                                            
Representative Ben Carpenter                                                                                                    
Representative Andy Josephson                                                                                                   
Representative Bart LeBon                                                                                                       
Representative Sara Rasmussen                                                                                                   
Representative Steve Thompson                                                                                                   
Representative Adam Wool                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Bryce Edgmon                                                                                                     
Representative DeLena Johnson                                                                                                   
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Madison Govin,  Staff, Senator Peter Micciche;  Kris Curtis,                                                                    
Legislative Auditor,  Alaska Division of  Legislative Audit;                                                                    
Tim Lamkin, Staff, Senator Gary Stevens.                                                                                        
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Glenn  Hoskinson, Division  of Corporations,  Businesses and                                                                    
Professional  Licensing, Department  of Commerce,  Community                                                                    
and   Economic   Development;  Dana   Walukiewicz,   Alcohol                                                                    
Beverage  Board,  Department   of  Commerce,  Community  and                                                                    
Economic   Development;  Carrie   Craig,  Acting   Director,                                                                    
Alcohol   and  Marijuana   Control  Office,   Department  of                                                                    
Commerce,  Community and  Economic  Development; Dr.  Damien                                                                    
Delzer, OD,  Chairman Board of  Examiners in  Optometry; Dr.                                                                    
Steven Dobson,  OD, Dimond Vision Clinic,  Past President of                                                                    
Alaska Optometric Association.                                                                                                  
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 151    EXTEND ALCOHOLIC BEVERAGE CONTROL BOARD                                                                               
                                                                                                                                
          SB 151 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
SB 186    EXTEND BOARD OF EXAMINERS IN OPTOMETRY                                                                                
                                                                                                                                
          SB 186 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
CSSB 193(FIN)                                                                                                                   
          EXTEND BOARD OF CHIROPRACTIC EXAMINERS                                                                                
                                                                                                                                
          CSSB 193(FIN) was HEARD and HELD in committee for                                                                     
          further consideration.                                                                                                
                                                                                                                                
Co-Chair Merrick reviewed the meeting agenda.                                                                                   
                                                                                                                                
CS FOR SENATE BILL NO. 193(FIN)                                                                                               
                                                                                                                                
     "An Act extending the termination  date of the Board of                                                                    
     Chiropractic  Examiners; requiring  a  report on  audit                                                                    
     compliance by the Board  of Chiropractic Examiners; and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
1:32:46 PM                                                                                                                    
                                                                                                                                
MADISON  GOVIN, STAFF,  SENATOR  PETER MICCICHE,  introduced                                                                    
the  bill  with  prepared  remarks.  She  relayed  that  the                                                                    
legislation  extended the  Board of  Chiropractic Examiners                                                                     
(BCE)  termination date  five years  to June  30, 2027.  The                                                                    
audit concluded that the board  served the public's interest                                                                    
by  conducting  meetings  in  accordance  with  State  laws,                                                                    
amending  certain regulations  to  improve the  chiropractic                                                                    
profession,   and  effectively   licensing  and   regulating                                                                    
chiropractic physicians.  The bill required  the Legislative                                                                    
Audit Division to submit a  report to the Legislative Budget                                                                    
and Audit  Committee (LBA) concerning the  compliance of the                                                                    
board within  one year after  the effective date.  She urged                                                                    
the committees support in extending the board.                                                                                  
                                                                                                                                
Co-Chair  Merrick  asked  to   hear  from  the  Division  of                                                                    
Legislative Audit.                                                                                                              
                                                                                                                                
1:33:46 PM                                                                                                                    
                                                                                                                                
KRIS  CURTIS,   LEGISLATIVE  AUDITOR,  ALASKA   DIVISION  OF                                                                    
LEGISLATIVE AUDIT, reviewed the  legislative audit. She read                                                                    
the conclusions from page 1 of the Audit:                                                                                       
                                                                                                                                
     Overall, the audit concluded that  the board served the                                                                    
     public's interest by  conducting meetings in accordance                                                                    
     with  State  laws,   amending  certain  regulations  to                                                                    
     improve  the chiropractic  profession, and  effectively                                                                    
     licensing   and  regulating   chiropractic  physicians.                                                                    
     Additionally, the audit found  one board member did not                                                                    
     meet   statutory  requirements   for  appointment   and                                                                    
     additional resources  were needed to  investigate cases                                                                    
     in a timely manner.                                                                                                        
                                                                                                                                
     In  accordance with  AS 08.03.010(c)(5),  the board  is                                                                    
     scheduled to  terminate on June 30,  2022. We recommend                                                                    
     that  the legislature  extend  the board's  termination                                                                    
     date five  years to June  30, 2027, which is  less than                                                                    
     the eight-year maximum allowed  in statute. The reduced                                                                    
     extension  is due  to an  issue  identified during  the                                                                    
     audit that  may impact  the board's ability  to protect                                                                    
     the public. The  details of the issue  are not included                                                                    
     in this  report to  preserve the confidentiality  of an                                                                    
     ongoing investigation.  The reduced  extension reflects                                                                    
     the need for continued oversight.                                                                                          
                                                                                                                                
Ms.  Curtis drew  attention  to  Page 5  of  the audit  that                                                                    
included a  chart titled "Exhibit  2" that listed  the BCEs                                                                     
licensing  activity. She  indicated that  as of  January 31,                                                                    
2021, there  were 306 licensed chiropractors.  She turned to                                                                    
the chart  titled "Exhibit  3" on Page  6 that  depicted the                                                                    
board's revenues  and expenditures.  She indicated  that the                                                                    
board alternated between a deficit  and a surplus. According                                                                    
to  the Division  of Corporate,  Business, and  Professional                                                                    
Licensing  (DCBPL)  management,  the deficit  was  within  a                                                                    
reasonable range  and no fee  changes were  recommended. She                                                                    
noted that the license fees  were listed on the chart titled                                                                    
 Exhibit 4   on page  7. She furthered  that the  audit made                                                                    
two recommendations  found on  page 9  of the  audit report.                                                                    
She stated the first recommendation as follows:                                                                                 
                                                                                                                                
     The   governor  should   make  Board   of  Chiropractic                                                                    
     Examiners  (board)  appointments   in  compliance  with                                                                    
     statutory requirements.                                                                                                    
                                                                                                                                
Ms.  Curtis   delineated  that  the  governor   appointed  a                                                                    
licensed Emergency  Medical Technician  (EMT) as  the public                                                                    
member on  the board. Statutes prohibited  the public member                                                                    
to  not  have  a  financial  interest  in  the  health  care                                                                    
industry.  She   moved  to  the  second   recommendation  as                                                                    
follows:                                                                                                                        
                                                                                                                                
     DCBPL's director  should allocate  sufficient resources                                                                    
     to ensure cases are addressed in a timely manner.                                                                          
                                                                                                                                
     All 11 cases open over  180 days from July 2017 through                                                                    
     January  2021  were  evaluated   by  auditors.  It  was                                                                    
     identified that  seven of the  cases involved  the same                                                                    
     chiropractor and were combined  into one case. Auditors                                                                    
     found  the   case  had  four  periods   of  unjustified                                                                    
     inactivity ranging  from 55 to  208 days.  According to                                                                    
     DCBPL  investigative  staff,  the  inactivity  was  the                                                                    
     result   of  competing   priorities  and   insufficient                                                                    
     resources.                                                                                                                 
                                                                                                                                
Ms.  Curtis highlighted  that managements   response to  the                                                                    
audit began on  Page 21. She reported  that the commissioner                                                                    
of  the  Department  of  Commerce,  Community  and  Economic                                                                    
Development (DCCED)  hired two new investigators,  which she                                                                    
believed  would  improve  the   quality  and  timeliness  of                                                                    
investigations. The  governor's response  was on page  23 of                                                                    
the audit.  She related  that the  governor agreed  with the                                                                    
first  recommendation  and  notified the  auditor  that  the                                                                    
board member had been removed.  The boards  chairs  response                                                                    
began on  Page 25. She  communicated that the chair  did not                                                                    
agree with the 5-year extension.  He believed that the board                                                                    
was being  unfairly penalized for  actions on behalf  of the                                                                    
governors  office and DCBPL. He  requested that the board be                                                                    
granted an 8-year extension.                                                                                                    
                                                                                                                                
1:37:13 PM                                                                                                                    
                                                                                                                                
GLENN  HOSKINSON, DIVISION  OF CORPORATIONS,  BUSINESSES AND                                                                    
PROFESSIONAL  LICENSING, DEPARTMENT  OF COMMERCE,  COMMUNITY                                                                    
AND ECONOMIC DEVELOPMENT  (via teleconference), reviewed the                                                                    
department's published fiscal impact  fiscal note (FN3 (CED)                                                                    
for DCCED, DCBPL. She explained  that the fiscal note showed                                                                    
the cost  of operating  the board  and not  the cost  of the                                                                    
program.  The  expenses  incurred were  as  follows:  Travel                                                                    
costs were  $20.3 thousand for  5 board members and  1 staff                                                                    
member  to   attend  four  board   meetings  per   year  and                                                                    
associated  costs and  services  for  advertising of  public                                                                    
notice of board meetings,  training and conference fees, and                                                                    
stipends for  board members attending board  meetings in its                                                                    
community of residence.                                                                                                         
                                                                                                                                
SB  193  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
1:38:29 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:38:57 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 151                                                                                                           
                                                                                                                                
     "An Act extending the termination date of the                                                                              
     Alcoholic Beverage Control Board; and providing for an                                                                     
     effective date."                                                                                                           
                                                                                                                                
1:38:57 PM                                                                                                                    
                                                                                                                                
Co-Chair  Merrick  indicated that  Representative  Josephson                                                                    
and Representative Wool had joined the meeting.                                                                                 
                                                                                                                                
MADISON  GOVIN, STAFF,  SENATOR  PETER MICCICHE,  introduced                                                                    
the  bill with  prepared remarks.  She relayed  that SB  151                                                                    
extended the board's termination date  to June 30, 2027. She                                                                    
furthered that  the Legislative Audit Division  reviewed the                                                                    
activities of  the ABC  Board and  determined the  board was                                                                    
effectively serving  the public interest by  controlling the                                                                    
manufacture,  barter,  possession,  and  sale  of  alcoholic                                                                    
beverages in  the state. Findings  also included  that board                                                                    
meetings  were   conducted  effectively,   regulations  were                                                                    
adopted to  implement statutory changes,  and investigations                                                                    
were conducted in a timely manner.                                                                                              
                                                                                                                                
Co-Chair  Merrick  asked  to   hear  from  the  Division  of                                                                    
Legislative Audit.                                                                                                              
                                                                                                                                
1:40:23 PM                                                                                                                    
                                                                                                                                
KRIS  CURTIS,   LEGISLATIVE  AUDITOR,  ALASKA   DIVISION  OF                                                                    
LEGISLATIVE  AUDIT,  indicated  that the  audit  was  unique                                                                    
because  the Alcoholic  Beverage Control  Board (ABC)  audit                                                                    
report contained  findings from  both a Sunset  Review Audit                                                                    
and a Special  Review Audit of the  boards licensing process                                                                    
requested  by the  Legislative  Budget  and Audit  Committee                                                                    
(LBA). She read from the reports conclusions as follows:                                                                        
                                                                                                                                
     Overall,  the  audit  found that  board  meetings  were                                                                    
     conducted  effectively,  regulations  were  adopted  to                                                                    
     implement  statutory changes,  and investigations  were                                                                    
     conducted in a timely  manner. The audit also concluded                                                                    
     that the  Alcohol and  Marijuana Control  Office (AMCO)                                                                    
     operations  were impeded  by the  lack of  an automated                                                                    
     application   process    and   significant   vacancies.                                                                    
     Further,  deficiencies  in   controls  over  processing                                                                    
     licensee fee refunds were identified.                                                                                      
                                                                                                                                
     We  recommend   the  legislature  extend   the  board's                                                                    
     termination date to June 30,  2026, which is four years                                                                    
     less than  the maximum allowed in  statute. The reduced                                                                    
     extension reflects  the need for more  timely oversight                                                                    
     to   evaluate  the   board's  progress   in  addressing                                                                    
     licensing inefficiencies and filling vacancies.                                                                            
                                                                                                                                
Ms.  Curtis pointed  to Page  14  of the  audit report  that                                                                    
contained a  chart titled "Exhibit  2" that  displayed ABC's                                                                    
license count by type as  of February 28, 2021. She reported                                                                    
that 1,867  licenses were active. A  backlog of applications                                                                    
due December  2020, caused  by extensive  vacancies resulted                                                                    
in  the issuance  of approximately  300 temporary  licenses.                                                                    
She  elaborated  that   Auditors  reviewed  AMCO's  staffing                                                                    
during  the  audit  period and  found  extensive  vacancies.                                                                    
Exhibit 3 on  page 15 displayed the staff  vacancies from FY                                                                    
2018  through   February  28,   2021  and   showed  staffing                                                                    
vacancies that exceeded two months  during the audit period.                                                                    
In total, 7 staff positions  were vacant over 92 months. The                                                                    
department offered that the hiring  of the two positions was                                                                    
not   approved   due   to   "the   substantial   uncertainty                                                                    
surrounding an  earlier proposal to merge  AMCO into DCCED's                                                                    
Division   of   Corporations,  Business   and   Professional                                                                    
Licensing.  The  impact  of the  COVID-19  pandemic  to  the                                                                    
alcoholic  beverage   and  marijuana  industries   was  also                                                                    
unknown,  and  these  two   positions  were  not  materially                                                                    
involved in  licensing functions. In addition,  one position                                                                    
was not filled due to  difficulty with finding workspace for                                                                    
the  special investigator  position,  which  was moved  from                                                                    
Fairbanks  to the  Matanuska-Susitna  Borough. The  extended                                                                    
vacancies negatively impacted AMCOs   ability to support the                                                                    
ABC board as well as  the Marijuana Control Board (MCB). She                                                                    
referred  to  Pages  10  through   18  that  summarized  the                                                                    
auditors  detailed review of  the boards  licensing process.                                                                    
The auditors  found  that 76 percent of new  licenses and 85                                                                    
percent of  transfer applications  were issued  or finalized                                                                    
within six months  of receipt. She added that  on average it                                                                    
took 153 days  to issue a new license and  131 days to issue                                                                    
a  transfer   license.  The  audit  reported   that  license                                                                    
requirements  were complex,  making the  application process                                                                    
complicated and  inherently subject  to error.  Further, the                                                                    
applications  must  be  submitted  manually.  As  such,  the                                                                    
applications were  not subject  to online edits  designed to                                                                    
help limit errors. The audit  identified the following three                                                                    
opportunities for gaining licensing efficiencies:                                                                               
                                                                                                                                
1:43:53 PM                                                                                                                    
                                                                                                                                
     Analysis of  the 505  applications received  during the                                                                    
     audit period found  applications were incomplete and/or                                                                    
     inaccurate   at  a   rate  of   96   percent  for   new                                                                    
     applications and 97  percent for transfer applications.                                                                    
     Once  determined deficient,  the applications  are sent                                                                    
     back  to  the   applicants  for  correction.  Returning                                                                    
     applications  added,  on  average, 20  days  to  AMCO's                                                                    
     review process.                                                                                                            
                                                                                                                                
Ms. Curtis  relayed that  the second  opportunity confirming                                                                    
an   applicants   compliance   with   the  regulations   and                                                                    
statutory  requirements  caused significant  delays.  Delays                                                                    
due to protest  by a local governing body or  due to waiting                                                                    
for receipt  of compliance  information added an  average of                                                                    
88 days for new licenses  and 35 days for transfer licenses.                                                                    
Thirdly,  the audit  found that  AMCO staff  issued new  and                                                                    
transfer  licenses  an  average  of 23  days  and  28  days,                                                                    
respectively, after  all outstanding requirements  were met.                                                                    
She   added   that   automation   of   the   process   would                                                                    
significantly  shorten  the  timeline. She  highlighted  the                                                                    
five recommendations contained in  the report found on Pages                                                                    
27 through 31:                                                                                                                  
                                                                                                                                
     Recommendation  No.  1:  The  Department  of  Commerce,                                                                    
     Community,    and    Economic    Development    (DCCED)                                                                    
     commissioner  should ensure  AMCO  staff vacancies  are                                                                    
     filled in a timely manner  and the AMCO director should                                                                    
     implement written licensing procedures.                                                                                    
                                                                                                                                
     Recommendation  No. 2:  The board  should significantly                                                                    
     enhance or replace its  licensing database and automate                                                                    
     the application process where possible.                                                                                    
                                                                                                                                
     Recommendation  No.  3:  The board  and  AMCO  director                                                                    
     should  strengthen procedures  for entering  restricted                                                                    
     purchasers  in   the  statewide  database   of  written                                                                    
     orders.                                                                                                                    
                                                                                                                                
Ms. Curtis elaborated  that the board failed  to address the                                                                    
finding  in   its  prior  audit.   Twenty-seven  individuals                                                                    
convicted  of relevant  violations during  the audit  period                                                                    
were  either  not  entered  in  the  statewide  database  or                                                                    
entered,  but not  marked as  restricted  purchasers due  to                                                                    
insufficient  procedures.   She  continued  to   the  fourth                                                                    
recommendation:                                                                                                                 
                                                                                                                                
     Recommendation  No.  4:  The board  and  AMCO  director                                                                    
     should  implement procedures  to ensure  municipalities                                                                    
     receiving   refunds  of   biennial  license   fees  are                                                                    
     actively enforcing alcoholic beverage laws.                                                                                
                                                                                                                                
1:47:16 PM                                                                                                                    
                                                                                                                                
     Alaska  Statute 04.11.610  requires biennial  licensing                                                                    
     fees to be refunded  to municipalities, and states that                                                                    
     if  the officers  of a  municipality  fail to  actively                                                                    
     enforce  laws related  to the  manufacture and  sale of                                                                    
     alcoholic   beverages   in   the   state,   the   DCCED                                                                    
     commissioner may  deny the refund. The  audit found the                                                                    
     reports were not reviewed by the board or AMCO staff.                                                                      
                                                                                                                                
Ms.   Curtis  disclosed   that   the   refunds  were   being                                                                    
automatically    issued.   She    moved    to   the    fifth                                                                    
recommendation:                                                                                                                 
                                                                                                                                
     Recommendation No. 5: The  AMCO director should improve                                                                    
     procedures  and fill  vacancies in  a timely  manner to                                                                    
     ensure  refunds  to  municipalities  are  appropriately                                                                    
     reviewed.                                                                                                                  
                                                                                                                                
     The audit  found one AMCO employee  was responsible for                                                                    
     calculating   the    amounts   to   be    refunded   to                                                                    
     municipalities  and the  calculation  was not  reviewed                                                                    
     prior to processing the refund.                                                                                            
                                                                                                                                
Ms. Curtis recommended that the  duties should be segregated                                                                    
for  better  internal  control and  the  extended  vacancies                                                                    
contributed to  the deficiency.  She addressed  the response                                                                    
by  the  Department  of  Commerce,  Community  and  Economic                                                                    
Development  (DCCED)  commissioner  found on  Page  47.  She                                                                    
related   that  the   commissioner  agreed   with  all   the                                                                    
recommendations.  The  commissioner   stated  that  all  the                                                                    
vacancies   had  been   filled.  In   addition,  DCCED   was                                                                    
developing a needs assessment for  an automated database and                                                                    
license renewal system. The violators  had been entered into                                                                    
the statewide database of written  orders and procedures had                                                                    
been adopted to  ensure the data was  entered going forward.                                                                    
Finally,  the  commissioner   ensured  that  procedures  for                                                                    
recommendation  4 would  be implemented  in the  future. She                                                                    
turned  to  Page  49  and reviewed  the  ABC  board  chairs                                                                     
response. She  indicated that  the chair  disagreed strongly                                                                    
with  the  four-year   early  extension  recommendation  and                                                                    
believed  that the  finding  would  jeopardize the  publics                                                                     
trust and  undermine confidence in  the public  process. The                                                                    
chair agreed with all the  recommendations but did not agree                                                                    
that    the   issues    warranted   a    reduced   extension                                                                    
recommendation.  She  added  that the  board  had  routinely                                                                    
received a 4 to 5 year extension over the last 20 years.                                                                        
                                                                                                                                
Representative  Josephson  referenced the  chair's  comments                                                                    
about   undermining  integrity   and   it   struck  him   as                                                                    
hyperbolic.                                                                                                                     
                                                                                                                                
Co-Chair  Merrick  indicated that  Representative  Carpenter                                                                    
had joined the meeting.                                                                                                         
                                                                                                                                
1:49:02 PM                                                                                                                    
                                                                                                                                
DANA  WALUKIEWICZ,  ALCOHOL  BEVERAGE BOARD,  DEPARTMENT  OF                                                                    
COMMERCE,   COMMUNITY   AND    ECONOMIC   DEVELOPMENT   (via                                                                    
teleconference), testified  in support of the  bill with the                                                                    
current  five-year extension.  He relayed  that AMCO  agreed                                                                    
with   the  audits    findings   but   disagreed  with   the                                                                    
recommendation  for a  four-year  extension.  The board  was                                                                    
thankful for the five-year extension  in the current version                                                                    
of the bill.  He elaborated that if the Title  4 rewrite (SB
9 - Alcoholic  Beverage Control; Alcohol Reg)  were to pass,                                                                    
the  board would  take on  a  lengthy and  large project  to                                                                    
update  the   regulations  consistent  with  the   bill.  He                                                                    
addressed the  audit findings.  He shared  that many  of the                                                                    
recommendations  made were  corrected. The  only outstanding                                                                    
issue was the lack of an  IT system to support the licensing                                                                    
process.  He  reported that  the  board  was in  support  of                                                                    
revamping  and  updating  the  system   to  create  a  fully                                                                    
automated system.  It was outside  the board's  authority to                                                                    
independently develop  the system  as it would  take capital                                                                    
funds. He  informed the committee  that funds  were included                                                                    
in SB 9  to support the automation effort.  The system would                                                                    
be  similar   to  the  myAlaska  state   log-in  system.  He                                                                    
concluded that he  was  happy  the board was  extended to 5-                                                                    
years instead  of four  years in the  current version  of SB
151.                                                                                                                            
                                                                                                                                
1:52:18 PM                                                                                                                    
                                                                                                                                
Representative Josephson  thought it sounded like  the board                                                                    
was  relatively satisfied.  He asked  if  the statement  was                                                                    
fair. Mr. Walukiewicz replied that  the extra year extension                                                                    
was  warranted  to  implement  SB 9  and  obtain  the  funds                                                                    
necessary and  deploy a new  IT system to  address licensing                                                                    
delays and inefficiencies. He restated  the board was pretty                                                                    
happy overall.  Representative Josephson perceived  that the                                                                    
board  would   always  receive   criticism  and   deal  with                                                                    
 competing  tensions.  He  apologized if  his prior  comment                                                                    
 seemed out  of hand.   He referenced the  chairs  comments,                                                                    
 jeopardizing  the  publics   trust  and  undermining  their                                                                    
confidence.   He asked  if  the chair  still  held the  same                                                                    
view.                                                                                                                           
                                                                                                                                
Mr.  Walukiewicz responded  in  the  negative. He  explained                                                                    
that  his  concern  was  over the  four  year  period  being                                                                    
insufficient to  accomplish the boards  work  and shared the                                                                    
industrys  and  the publics  concern  over an  early sunset.                                                                    
He offered  that issues  brought before  the board  could be                                                                    
very  political  in  nature. The  public  and  the  industry                                                                    
wanted certainty  that the  board would  be in  existence to                                                                    
address issues when  needed. He had been with  the board for                                                                    
just over  two years, and he  was pleased to see  the amount                                                                    
of public  process during board  meetings. He  believed that                                                                    
the board's  commitment to hear the  publics  and industrys                                                                     
concerns  and  take  the opportunity  to  address  them  was                                                                    
important.  He  deduced  that shortening  the  board's  term                                                                    
would potentially jeopardize the  public's trust. He assured                                                                    
the committee  that he would  work to improve  ABCs  process                                                                    
over 5 years  hopefully, resulting in a  consensus to extend                                                                    
the board for an even longer period of time.                                                                                    
                                                                                                                                
1:56:04 PM                                                                                                                    
                                                                                                                                
Representative  Carpenter  referenced Ms.  Curtis's  comment                                                                    
that  one  of  the   recommendations  was  also  a  previous                                                                    
recommendation. He  asked which recommendation she  had been                                                                    
referring to.                                                                                                                   
                                                                                                                                
Ms.  Curtis answered  that  there  were two  recommendations                                                                    
that were  repeated dealing with  the statewide  database of                                                                    
written orders  and the refund process  for biannual license                                                                    
fees.  The  two  were continuing  recommendations  from  the                                                                    
prior  audit.  She  maintained that  her  reduced  extension                                                                    
recommendation   was   not    associated   with   the   five                                                                    
recommendations. She felt  that there was a  need to monitor                                                                    
the   boards    progress   in   addressing   its   licensing                                                                    
deficiencies    and   was    what   drove    the   four-year                                                                    
recommendation.                                                                                                                 
                                                                                                                                
Representative  Carpenter cited  the  report on  page 5  and                                                                    
read the following:                                                                                                             
                                                                                                                                
     Alaska Statute  04.11.370(a) requires  a license  to be                                                                    
     suspended  or revoked  if the  board  finds a  licensee                                                                    
     violated an  alcoholic beverage statute  or regulation,                                                                    
     a condition or  restriction imposed by the  board, or a                                                                    
     municipal  ordinance.   Statutes  also  state   that  a                                                                    
     license  should be  suspended or  revoked if  the board                                                                    
     finds  the licensee  failed to  correct  a defect  that                                                                    
     constitutes a violation after  receipt of notice issued                                                                    
     by the board or its enforcement agents.                                                                                    
                                                                                                                                
Representative Carpenter  noted that  there were  two audits                                                                    
in  a  row  with  the same  recommendation,  yet  the  board                                                                    
received  an  extension from  four  to  five years.  He  was                                                                    
concerned  that  even an  audit  every  four years  had  not                                                                    
resulted in  fixing recommendations.  He did  not understand                                                                    
why the sunset was extended to five years.                                                                                      
                                                                                                                                
1:58:49 PM                                                                                                                    
                                                                                                                                
Ms.   Curtis  responded   that  on   page  21,   the  report                                                                    
acknowledged  that  the  boards   enforcement  activity  had                                                                    
increased during the  audit period. She added  that when the                                                                    
audit had  been conducted, SB  9 had not passed  and whether                                                                    
or not  the bill passed  she still would recommend  a 4-year                                                                    
extension to  allow auditors time  to determine  the boards                                                                     
progress   in  implementing   SB   9.   She  believed   that                                                                    
legislative oversight was important  when a board was tasked                                                                    
with extensive changes.                                                                                                         
                                                                                                                                
Co-Chair Merrick  asked the department to  review the fiscal                                                                    
note.                                                                                                                           
                                                                                                                                
GLENN  HOSKINSON, DIVISION  OF CORPORATIONS,  BUSINESSES AND                                                                    
PROFESSIONAL  LICENSING, DEPARTMENT  OF COMMERCE,  COMMUNITY                                                                    
AND ECONOMIC  DEVELOPMENT (via teleconference),  deferred to                                                                    
AMCO to review the fiscal note.                                                                                                 
                                                                                                                                
CARRIE  CRAIG,   ACTING  DIRECTOR,  ALCOHOL   AND  MARIJUANA                                                                    
CONTROL  OFFICE,  DEPARTMENT   OF  COMMERCE,  COMMUNITY  AND                                                                    
ECONOMIC DEVELOPMENT (via teleconference),  did not have the                                                                    
fiscal note on hand.                                                                                                            
                                                                                                                                
SB  151  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
SENATE BILL NO. 186                                                                                                           
                                                                                                                                
     "An Act extending the termination  date of the Board of                                                                    
     Examiners in Optometry; and  providing for an effective                                                                    
     date."                                                                                                                     
                                                                                                                                
2:01:06 PM                                                                                                                    
                                                                                                                                
TIM  LAMKIN,  STAFF,  SENATOR   GARY  STEVENS,  thanked  the                                                                    
committee for hearing the bill  promptly and deferred to the                                                                    
auditor for comment.                                                                                                            
                                                                                                                                
KRIS  CURTIS,   LEGISLATIVE  AUDITOR,  ALASKA   DIVISION  OF                                                                    
LEGISLATIVE AUDIT, spoke to the  audit findings. She pointed                                                                    
to the Audit Report for  the Board of Examiners of Optometry                                                                    
dated  June  9, 2021  (copy  on  file).  She read  from  the                                                                    
reports conclusions as follows:                                                                                                 
                                                                                                                                
     The  board conducted  its meetings  in compliance  with                                                                    
     state  laws  effectively   licensed  optometrists,  and                                                                    
     actively  amended  regulations   to  address  statutory                                                                    
     changes   and  improve   the  licensing   process.  The                                                                    
     Division  of  Corporations, Business  and  Professional                                                                    
     Licensing  (DCBPL)  staff  failed  to  operate  in  the                                                                    
     public's   interest  by   not  consistently   recording                                                                    
     licensees with federal  Drug Enforcement Administration                                                                    
     (DEA) registration  numbers in the  licensing database,                                                                    
     not   ensuring   continuing   education   audits   were                                                                    
     conducted   timely,  and   not  monitoring   licensees'                                                                    
     compliance with  requirements for  continuing education                                                                    
     in pain management and opioid use and addiction.                                                                           
                                                                                                                                
     In accordance  with AS  08.03.010(c)(15), the  board is                                                                    
     scheduled to  terminate on June 30,  2022. We recommend                                                                    
     the legislature extend the  board's termination date to                                                                    
     June  30,  2028,  which  is two  years  less  than  the                                                                    
     maximum  allowed  in  statute.  The  reduced  extension                                                                    
     reflects  the  need  for   more  routine  oversight  in                                                                    
     recognition of audit findings.                                                                                             
                                                                                                                                
Ms. Curtis pointed  to "Exhibit 2" on Page  9, that included                                                                    
a chart showing the board's  licensing activity from FY 2018                                                                    
through January  31, 2021, that  totaled 218  licensees. The                                                                    
amount  reflected an  18 percent  increase  since its  prior                                                                    
sunset audit.  She turned  to Page  10, "Exhibit  3listing                                                                      
the board's revenues and expenditures  over the same period.                                                                    
She reported that  the board had a deficit  of $52 thousand.                                                                    
A  fee increase  was  proposed by  DCBPL  management to  the                                                                    
board  in April  2020. Fees  were not  increased based  on a                                                                    
directive from  the governor to  help relieve  the financial                                                                    
impact  of  the  COVID-19  pandemic.   She  noted  that  the                                                                    
schedule of  fees was found on  Page 11 in  Exhibit  4.  She                                                                    
indicated  that  the   report  contained  3  recommendations                                                                    
beginning on Page 13, as follows:                                                                                               
                                                                                                                                
     Recommendation No. 1:  DCBPL's director should dedicate                                                                    
     resources to ensure licensees holding  a DEA number are                                                                    
     consistently recorded in the licensing database.                                                                           
                                                                                                                                
     DCBPL  management  provided  written  instructions  and                                                                    
     training  to board  licensing  staff  regarding how  to                                                                    
     record the existence  of a DEA number  in the licensing                                                                    
     database;  however,  DCBPL   licensing  staff  did  not                                                                    
     consistently  follow the  guidance. According  to DCBPL                                                                    
     management, regular  turnover in the  board's licensing                                                                    
     examiner  and  licensing  supervisor positions  led  to                                                                    
     inadequate training and  oversight which contributed to                                                                    
     the finding.                                                                                                               
                                                                                                                                
Ms. Curtis  interjected that it was  important the licensing                                                                    
database had  accurate information  to cross match  with the                                                                    
Controlled  Substances  Prescription  database in  order  to                                                                    
register. She moved to the second recommendation:                                                                               
                                                                                                                                
     Recommendation  No.  2:  The board  chair  and  DCBPL's                                                                    
     director  should change  the  license  renewal form  to                                                                    
     allow the  board to monitor compliance  with continuing                                                                    
     education requirements.                                                                                                    
                                                                                                                                
     Alaska  Statute 08.72.181(d),  effective July  1, 2018,                                                                    
     requires licensees holding a  DEA number to complete at                                                                    
     least  two hours  of education  in pain  management and                                                                    
     opioid  use   and  addiction   during  the   two  years                                                                    
     preceding the  application for renewal.  Auditors found                                                                    
     the board and  DCBPL staff did not  update the December                                                                    
     2020   renewal  form   to   require  licensees   report                                                                    
     compliance with the new continuing                                                                                         
     education requirement.                                                                                                     
                                                                                                                                
     Recommendation  No. 3:  DCBPL's director  should ensure                                                                    
     adequate resources are available to perform continuing                                                                     
     education audits.                                                                                                          
                                                                                                                                
Ms. Curtis  elucidated that the  audits were  the divisions                                                                     
method  of internal  control to  ensure  the licensees  were                                                                    
complying with continuing  education requirements. Licensing                                                                    
staff forwarded noncompliant  licensees to the investigative                                                                    
unit  approximately   two  and   a  half  years   after  the                                                                    
compliance  audit. According  to DCBPL  management, turnover                                                                    
and multiple  licensing staff  vacancies contributed  to the                                                                    
finding. She  highlighted managements  response on  Page 25.                                                                    
She  relayed  that  the   commissioner  concurred  with  the                                                                    
conclusions  and  recommendations. The  commissioner  stated                                                                    
that  the licensing  examiner position  turned over  5 times                                                                    
during  the   3.5  year  audit  period   and  the  licensing                                                                    
supervisor  turned over  4  times, which  led  to all  three                                                                    
findings. She reviewed the chair's  response on Page 27. She                                                                    
pointed to  the second recommendation and  reported that the                                                                    
chair stated the deficiencies would  be addressed before the                                                                    
next licensing renewal cycle.                                                                                                   
                                                                                                                                
2:06:08 PM                                                                                                                    
                                                                                                                                
Representative  Josephson asked  whether it  came under  the                                                                    
auditor's  purview  to  review  the  expansion  of  surgical                                                                    
authority  granted to  optometrists in  HB 103  [Optometry &                                                                    
Optometrists -  Chapter 17 SLA  17, 07/26/2017] in  the 30th                                                                    
legislature.  Ms. Curtis  answered  that the  issue was  not                                                                    
determined to  be a  risk area and  therefore, they  did not                                                                    
 spend   any  resources    on   the  issue.   Representative                                                                    
Josephson  asked if  the auditors  would  have examined  the                                                                    
issue if  it had  been identified as  a subject  of concern.                                                                    
Ms. Curtis  replied that  in the survey  phase of  the audit                                                                    
that looked for complaints  regarding the board it developed                                                                    
fieldwork  procedures to  follow  up on  complaints and  the                                                                    
issue was not identified in the process.                                                                                        
Co-Chair  Merrick  indicated that  Representative  Rasmussen                                                                    
joined the meeting.                                                                                                             
                                                                                                                                
2:07:08 PM                                                                                                                    
                                                                                                                                
DR.  DAMIEN  DELZER,  OD, CHAIRMAN  BOARD  OF  EXAMINERS  IN                                                                    
OPTOMETRY (via teleconference),  provided remarks. He shared                                                                    
that he had served  on the board for 8 years  and the last 3                                                                    
years  served as  chair.  He reiterated  the  duties of  the                                                                    
board. He  relayed that  the board  had implemented  over 20                                                                    
statutory changes  over the last  three years in  areas such                                                                    
as  continuing   education  requirements   including  opioid                                                                    
requirements,  scope   of  practice,   military  exemptions,                                                                    
modernizations    of    prescription    requirements,    and                                                                    
modernization of emergency  regulations during the pandemic.                                                                    
He  reported that  there had  been no  reported Prescription                                                                    
Drug Monitoring  Program (PDMP) violations since  his tenure                                                                    
on the  board. The board  was self-funded and  had minimized                                                                    
travel expenses  through the use  of Zoom meetings  over the                                                                    
last 3 years. He noted  that the board chair participated in                                                                    
bi-weekly board chair meetings and PDMP meetings.                                                                               
                                                                                                                                
2:09:04 PM                                                                                                                    
                                                                                                                                
DR. STEVEN DOBSON, OD, DIMOND  VISION CLINIC, PAST PRESIDENT                                                                    
OF  ALASKA  OPTOMETRIC   ASSOCIATION  (via  teleconference),                                                                    
supported the  bill. He shared  that he  practiced optometry                                                                    
in the  state for 40  years and had  served on the  board in                                                                    
the late 1980s  and served as  chair in the early 1990s.  He                                                                    
appreciated the  importance of the  board in  protecting the                                                                    
visual  welfare of  Alaskans. He  indicated  that the  board                                                                    
ensured  practitioners met  the high  professional standards                                                                    
set   forward  by   the  board.   The  board   ensured  that                                                                    
optometrists in the  state were trained in  the most current                                                                    
advances in the profession.                                                                                                     
                                                                                                                                
2:10:52 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick  asked the department to  review the fiscal                                                                    
note.                                                                                                                           
                                                                                                                                
GLENN  HOSKINSON, DIVISION  OF CORPORATIONS,  BUSINESSES AND                                                                    
PROFESSIONAL  LICENSING, DEPARTMENT  OF COMMERCE,  COMMUNITY                                                                    
AND ECONOMIC DEVELOPMENT  (via teleconference), reviewed the                                                                    
published fiscal impact  fiscal note for DCCED,  DCBPL (FN 1                                                                    
(CED).  She relayed  that the  fiscal  note represented  the                                                                    
cost of  operating the board  but not the operations  of the                                                                    
program.  She  reported that  the  fiscal  noted showed  the                                                                    
appropriation  of  $15.2 thousand  for  travel  for 7  board                                                                    
members and  1 staff member,  to attend four  board meetings                                                                    
per  year  and  for  additional expenses  for  services  for                                                                    
advertising  of public  notice of  board meetings,  training                                                                    
and  conference   fees,  and  stipends  for   board  members                                                                    
attending board meeting in community of residence.                                                                              
                                                                                                                                
SB  186  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Merrick noted the amendment  deadline of May 5. She                                                                    
reviewed the schedule for the following morning.                                                                                
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
2:12:39 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 2:12 p.m.                                                                                          
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
SB 186 Optometry Audit June 2021.pdf HFIN 5/2/2022 1:30:00 PM
SB 186
SB 186 Optometry Letters of Support _bundled as of 3.4.2022.pdf HFIN 5/2/2022 1:30:00 PM
SB 186
SB 186 Optometry Sponsor Statement 2.22.2022.pdf HFIN 5/2/2022 1:30:00 PM
SB 186
SB 193 Audit Summary.pdf HFIN 5/2/2022 1:30:00 PM
SB 193
SB 193 Explanation of Changes, version I to G.pdf HFIN 5/2/2022 1:30:00 PM
SB 193
SB 193 Full Audit.pdf HFIN 5/2/2022 1:30:00 PM
SB 193
SB 193 Sponsor Statement Version G.pdf HFIN 5/2/2022 1:30:00 PM
SB 193
SB 193_Letter of Support.pdf HFIN 5/2/2022 1:30:00 PM
SB 193
SB 151 Explanation of Changes.pdf HFIN 5/2/2022 1:30:00 PM
SB 151
SB 151 Research Audit Summary.pdf HFIN 5/2/2022 1:30:00 PM
SB 151
SB 151 Research Full Audit.pdf HFIN 5/2/2022 1:30:00 PM
SB 151
SB 151 Sponsor Statement.pdf HFIN 5/2/2022 1:30:00 PM
SB 151