HOUSE BILL NO. 274 "An Act extending the termination date of the Board of Psychologist and Psychological Associate Examiners; and providing for an effective date." 2:47:43 PM REPRESENTATIVE SAM KITO, SPONSOR, explained that the bill extended the Board of Psychologist and Psychological Associate Examiners to June 30, 2026 in accordance with the 8-year recommendation of the Legislative Audit Division. He summarized that the long-standing board provided services and licensing for psychologists in the state and was "doing a fine job." Co-Chair Foster indicated that the committee had been joined by Representative Stutes. KRIS CURTIS, LEGISLATIVE AUDITOR, ALASKA DIVISION OF LEGISLATIVE AUDIT, read a portion of the Legislative Audit Report, "A Sunset Review of the Department of Commerce, Community and Economic Development Board of Psychologist and Psychological Associate Examiners (board) (copy on file): Overall, the audit concludes the board served the public's interest by effectively licensing and regulating psychologists and psychological associates. The board monitored licensees and worked to ensure only qualified individuals practice in Alaska. In accordance with AS 08.03.010(c)(18), the board is scheduled to terminate on June 30, 2018. We recommend that the legislature extend the board's termination to June 30, 2026 Ms. Curtis continued with page 5 of the audit that contained " Exhibit 2" a table that included a schedule of licensing activities. She noted that the board had 285 active licenses, which represented a 174 percent increase since the prior sunset audit in 2009. 2:50:35 PM Ms. Curtis turned to page 7, "Exhibit 4" that contained a table reflecting revenue and expenditures. She offered the following from the audit: fees were increased in FY 17 for the initial application and the associate license. At the end of FY 17, as shown in Exhibit 4, the board had a surplus of $399,525. Per the board, associate fees were increased to equal the fees for psychologist licenses. The application fee was increased to fully account for the costs of processing incoming applications. DCBPL management did not adequately consider the surplus when setting the fees, which resulted in licensees paying higher than justified fees in FY 17. Ms. Curtis communicated that the audit contained two recommendations: Recommendation 1, "DCBPL's director, in consultation with the board, should reduce fees." and Recommendation 2: "DCBPL's director should develop and implement procedures to ensure courtesy licensees comply with monthly reporting requirements." She detailed that courtesy licenses were limited to 30 days per year. Courtesy licensees must submit a monthly report to the board during the period of licensure indicating the number of days they practiced during the month. The audit found that the monthly reports were not being required. She continued that the agency's response was on page 21 and the board's response was on page 23 and both entities concurred with the conclusions and recommendations of the audit. Co-Chair Foster invited Ms. Chambers to review the fiscal note associated with the bill. 2:52:53 PM SARA CHAMBERS, OPERATIONS MANAGER, DIVISION OF CORPORATIONS, BUSINESS, and PROFESSIONAL LICENSING, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, explained that when the division's boards sunset without renewal the operations would return to the division to manage. The fiscal notes did not reflect the operational costs of the board. She pointed out that the previously published fiscal impact note from DCCED FN1 (CED) appropriated $21.4 thousand for the board's expenses. She reported that $19.9 thousand was allocated for travel costs and the remaining $1.5 thousand was allocated for services like member stipends, advertising public notices, and training. She offered that the boards were effectively reducing travel expenses using video conferencing and the actual costs could be lower. Co-Chair Foster OPENED Public Testimony for HB 274. 2:55:05 PM ALLEN LEVY, CHAIR, BOARD of PSYCHOLOGISTS AND PSYCHOLOGICAL ASSOCIATE EXAMINERS (via teleconference), concurred with the legislative audit report. He favored the bill. He reported that the board had already taken steps to implement the recommendations and looked forward to serving the citizens of the state. 2:56:16 PM ROBERT LANE, ALASKA PSYCHOLOGICAL ASSOCIATION, ANCHORAGE (via teleconference), supported HB 274. He indicated that the board had protected the citizens of Alaska and had served them well. He believed that board regulations provided great guidance for the practitioners. He reiterated his support for the legislation. Co-Chair Foster CLOSED Public Testimony on HB 274. 2:57:36 PM Co-Chair Foster relayed that amendments were due by Friday, February 9, 2018 by 5:00 pm. HB 274 was HEARD and HELD in committee for further consideration.