00 SENATE BILL NO. 51 01 "An Act establishing the Sunrise Review Board; relating to review of proposed 02 legislation relating to authorization to engage in the practice of a profession or 03 occupation; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05  * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 06 to read: 07 LEGISLATIVE FINDINGS. The legislature finds that it is in the interest of the state 08 to promote economic development, competition, and job growth by lowering barriers to entry 09 created by professional and occupational licensure whenever possible, to prevent barriers to 10 entry for professional and occupational licensure, to encourage as many competent 11 practitioners as possible to practice in the state, and to increase the participation of 12 nongovernmental organizations that issue certifications for or regulate the quality of 13 professions and occupations in the governing of those professions and occupations. 14  * Sec. 2. AS 08.02 is amended by adding new sections to read: 01 Article 3A. Sunrise Review Board. 02 Sec. 08.02.200. Board established. (a) The Sunrise Review Board is 03 established in the department. The board shall meet at the call of the chair. The board 04 may meet in person, telephonically, or by electronic means. 05 (b) The board consists of seven members, as follows: 06 (1) the director of the division in the Department of Commerce, 07 Community, and Economic Development responsible for corporations and business 08 and professional licensing, or the director's designee, who shall serve as chair; 09 (2) the director of the division in the Department of Health responsible 10 for public health, or the director's designee; 11 (3) the director of the division in the Department of Labor and 12 Workforce Development responsible for standards and safety, or the director's 13 designee; 14 (4) an employee in the division of the Department of Law responsible 15 for civil cases who has a background in fraud or consumer protection, appointed by 16 the attorney general; 17 (5) an employee who conducts research in the Department of Labor 18 and Workforce Development, appointed by the commissioner of labor and workforce 19 development; 20 (6) a public member with experience in business or accounting, 21 appointed by the governor; 22 (7) a public member with experience in health and safety, appointed by 23 the governor. 24 (c) Members of the board serve without compensation but are entitled to per 25 diem and travel expenses authorized for boards and commissions under AS 39.20.180. 26 (d) Members appointed under (a)(4) - (7) of this section serve staggered terms 27 of three years or until a successor is appointed. 28 Sec. 08.02.210. Regulations. The board may adopt regulations necessary to 29 implement AS 08.02.200 - 08.02.290.  30 Sec. 08.02.220. Board review of change to licensure. (a) The board shall 31 review legislation proposing a change to licensure that is introduced in the legislature, 01 unless the proposed change has been the subject of a review within the preceding four 02 years. 03 (b) The board shall review other proposed changes to licensure upon request. 04 (c) The board may request from a department, board, commission, association, 05 or person requesting a review additional information the board finds necessary to 06 complete a review of a proposed change to licensure. 07 Sec. 08.02.230. Request for review. (a) A review of a proposed change to 08 licensure may be requested by 09 (1) the governor, a legislator, or the head of a principal executive 10 department of the state; or 11 (2) a person practicing a profession or occupation, group representing 12 a profession or occupation, or person receiving goods or services from another person 13 in the practice of the other person's profession or occupation, upon payment of a fee 14 set by the board in regulation. 15 (b) A request for review of a proposed change to licensure for a profession or 16 occupation must be submitted in a form prescribed by the board and must 17 (1) identify the requestor and the requestor's relationship to the 18 profession or occupation; 19 (2) describe the proposed change; the description may include draft 20 legislation; 21 (3) explain the problem the proposed change seeks to address and the 22 reason the change is necessary; 23 (4) describe any previous efforts made to address the problem without 24 a change to licensure, including voluntary efforts made by members of the profession 25 or occupation and the reason those efforts were insufficient; 26 (5) explain how the proposed change is the least-restrictive method of 27 regulation to protect the public; 28 (6) describe alternatives to the proposed change that have been 29 considered, the manner in which the alternatives would restrict the practice of the 30 profession or occupation, and the reason the alternatives are not preferred; 31 (7) describe potential benefits to the public that would result from the 01 proposed change; 02 (8) describe potential harm to the public that could result from the 03 proposed change; 04 (9) estimate the costs to the state associated with the proposed change; 05 (10) describe the group that would be affected by the proposed change, 06 including the names of professional or occupational associations that would be 07 affected, and the estimated number of practitioners and businesses that would be 08 affected by the proposed change; 09 (11) if the proposed change would regulate the practice of a profession 10 or occupation, document specific harm caused to the public by a lack of regulation; 11 documentation may include reference to a civil or criminal action against an individual 12 relating to the practice of the profession or occupation in the state; 13 (12) list the state and federal laws enacted in the preceding five years 14 related to the profession or occupation and the reasons the laws were insufficient to 15 carry out the proposed change; 16 (13) describe the cost, availability, and appropriateness of training and 17 examination requirements, if the proposed change imposes a new training or 18 examination requirement; 19 (14) review the availability of nongovernmental organizations that 20 issue certifications for or regulate the quality of the profession or occupation; 21 (15) if the proposed change would require a new license, describe 22 anticipated disqualifying conditions and how the conditions would serve public safety, 23 commercial, or consumer protection interests; 24 (16) propose a funding mechanism to pay the administrative costs 25 associated with the proposed change. 26 Sec. 08.02.240. Scope of review; recommendations. (a) The board's review 27 of a proposed change to licensure must evaluate 28 (1) the possibility of harm arising from the unregulated practice of the 29 profession or occupation; 30 (2) whether the public needs and reasonably expects to benefit from an 31 assurance of initial and ongoing professional or occupational competence, and whether 01 the public can be adequately protected through other means in a more cost-effective 02 manner; and 03 (3) the anticipated costs to the state, the public, and persons being 04 regulated, and whether the costs are reasonable and can be met. 05 (b) If the board finds a possibility of harm arising from the unregulated 06 practice of the profession or occupation, the board shall recommend the least- 07 restrictive means reasonably necessary to protect the public interests. When possible, 08 the board shall recommend regulating a business or employer instead of an employee, 09 profession, or occupation. The board shall recommend the least-restrictive type of 10 regulation within the following categories: 11 (1) strengthening protections under AS 45.50.471 - 45.50.561 (Alaska 12 Unfair Trade Practices and Consumer Protection Act) if the proposed change is 13 predominantly intended to protect consumers against fraud; 14 (2) requiring periodic inspections if the proposed change is 15 predominantly intended to protect against unsanitary facilities or general health, 16 safety, or welfare concerns; 17 (3) requiring bonding or insurance if the proposed change is 18 predominantly intended to protect against potential damages to third parties; 19 (4) requiring registration with the state if the proposed change is 20 predominantly intended to protect against potential damages by persons who, while 21 physically located in the state, practice a profession or occupation in an organized 22 borough of the state or a census area in an unorganized borough of the state for less 23 than 30 days in a calendar year; 24 (5) offering voluntary state certification, unless suitable private 25 voluntary certification exists, if the proposed change is predominantly intended to 26 protect against asymmetric information between the seller and buyer; 27 (6) developing formal licensure if the proposed change is 28 predominantly intended to protect the immediate health and safety of consumers or the 29 general public and no other adequate system of regulation exists. 30 (c) In this section, "possibility of harm" means a clear potential that the 31 unregulated practice of a profession or occupation could endanger the health, safety, 01 or welfare of the public. 02 Sec. 08.02.250. Reports. (a) For each review of a proposed change to 03 licensure, the board shall prepare a review report. 04 (b) A review report must include 05 (1) the recommended level of regulation, as provided in 06 AS 08.02.240(b); 07 (2) a comparison of how other states regulate the profession or 08 occupation; 09 (3) reference to applicable federal statutes and regulations and 10 proposed federal legislation; 11 (4) the cost of regulation to consumers, including an increase or 12 decrease in services available; 13 (5) the cost of regulation to current and future practitioners, including 14 job creation, retention, and wages; 15 (6) the costs to employers; 16 (7) an analysis of each item listed in AS 08.02.230(b)(1) - (16). 17 (c) For a review requested under AS 08.02.230(b), the board shall submit the 18 report to the senate secretary and the chief clerk of the house of representatives, and 19 notify the legislature that the report is available, on or before the first day of 20 (1) the next regular legislative session following the date the request 21 was received by the board for requests received by the board before April 1 of a 22 calendar year; 23 (2) a regular legislative session after the next regular session following 24 the date the request was received by the board for requests received by the board on or 25 after April 1 of a calendar year. 26 (d) The board shall deliver a copy of a report prepared in response to a request 27 under AS 08.02.230(b) to the person that requested the review. 28 Sec. 08.02.290. Definitions. In AS 08.02.200 - 08.02.290, 29 (1) "board" means the Sunrise Review Board established in 30 AS 08.02.200; 31 (2) "change to licensure" means the creation or recognition in statute 01 of a new type of license to engage in a profession or occupation, a change in the scope 02 of practice of a license issued, or the elimination of a license; 03 (3) "license" means a certificate, registration, permit, or other 04 authorization to engage in a profession or occupation issued under this title by the 05 department or a board, commission, or association. 06  * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 07 read: 08 SUNRISE REVIEW BOARD; STAGGERED TERMS. Notwithstanding 09 AS 08.02.200, added by sec. 2 of this Act, the initial terms of the members of the Sunrise 10 Review Board appointed under AS 08.02.200, added by sec. 2 of this Act, are as follows: 11 (1) the member appointed under AS 08.02.200(4) shall serve a one-year term; 12 (2) the member appointed under AS 08.02.200(5) shall serve a two-year term; 13 (3) the members appointed under AS 08.02.200(6) and (7) shall each serve a 14 three-year term. 15  * Sec. 4. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 TRANSITION: REGULATIONS. The Department of Commerce, Community, and 18 Economic Development may adopt regulations necessary to implement the changes made by 19 this Act. The regulations take effect under AS 44.62 (Administrative Procedure Act), but not 20 before the effective date of the law implemented by the regulation. 21  * Sec. 5. Section 4 of this Act takes effect immediately under AS 01.10.070(c). 22  * Sec. 6. Except as provided in sec. 5 of this Act, this Act takes effect January 1, 2026.