Legislature(2023 - 2024)BELTZ 105 (TSBldg)
02/17/2023 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Workforce Challenges in Alaska from the Perspective of the Alaska Municipal League | |
| SB55 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 55 | TELECONFERENCED | |
SB 55-EXTEND STATE MEDICAL BOARD
2:29:53 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of SENATE BILL NO. 55 "An Act extending the
termination date of the State Medical Board; and providing for
an effective date."
He invited Kali Spencer to present the bill on behalf of Senator
Wielechowski.
2:30:28 PM
KALI SPENCER, Staff, Senator Bill Wielechowski, Alaska State
Legislature, Juneau, Alaska, gave a brief overview of SB 55 and
its purpose. She paraphrased the sponsor statement:
[Original punctuation provided.]
SB 55 will extend the termination date of the State
Medical Board to June 30, 2031.
The State Medical Board (board) effectively licensed
physicians, osteopaths, and podiatrists. However,
emergency courtesy licenses for physician assistants
were not issued in accordance with state law during
the COVID-19 pandemic. This was remedied in November
2021 when corrective action was taken by sending
letters to non-compliant licensees. Furthermore, the
board developed and adopted regulations to protect the
public, improve the licensing process, and expand
access to care during the COVID-19 public health
emergency.
2:31:23 PM
The last extension of the board was in 2020 when the
Division of Legislative Audit proposed a termination
date that was three years less than the eight-year
maximum allowed per statute. The Senate Labor &
Commerce Committee then amended the bill to reduce the
termination date by an additional two years for a
sunset date of June 30, 2023. Since 2020, the board
has addressed all recommendations from the previous
audit by adopting regulations to guide the process for
registering with the Controlled Substance Prescription
Database (CSPD); developed procedures to ensure
licensees with a Drug Enforcement Administration (DEA)
number register in the CSPD; and worked with the
Division of Corporations, Business and Professional
Licensing's (DCBPL) director to establish and
implement procedures to ensure the board reports
disciplinary actions in accordance with state law.
As a result of these successful implementations, the
Division of Legislative Audit proposed in July 2022
that the legislature extend the board's termination
date to June 30, 2031, which is the maximum extension
allowed per statute.
I respectfully request support from my colleagues to
pass SB 55 in a timely manner.
2:32:47 PM
CHAIR BJORKMAN invited Kris Curtis to put herself on the record
and begin her review of the audit.
2:33:03 PM
KRIS CURTIS, Legislative Auditor, Division of Legislative Audit,
Alaska State Legislature, Juneau, Alaska, reviewed the sunset
audit during the hearing on SB 55. She paraphrased the following
prepared statement:
The Division of Legislative Audit conducted a sunset
audit of the State Medical Board. The audit is dated
July 2022. A sunset audit determines whether a board
or commission serves the public's interest and should
be extended.
The audit concludes that the board serves the public's
interest by developing and implementing regulations to
protect the public, improve the licensing process, and
expand access to healthcare during the pandemic.
Further, the board serves the public's interest by
effectively licensing physicians, osteopaths, and
podiatrists; however, emergency courtesy licenses for
physician assistants were only sometimes issued in
accordance with state law.
2:33:48 PM
The Division of Legislative Audit found the board's
workload increased significantly during the audit
period due to the COVID-19 pandemic. The board met
frequently, sometimes weekly, to consider pandemic-
related regulations. Further, the number of licensing
applications that the board considered increased by
approximately 28 percent when compared to the prior
2019 sunset audit. The increase was the result of
practitioners moving to Alaska to help meet the need
for healthcare services and out-of-state practitioners
providing services via technology (commonly referred
to as telehealth). The dramatic increase in workload
occurred immediately after the governor replaced all
the board members. Board turnover and vacancies were
common during the audit period.
Even with these challenges, the board operated
effectively, and the division recommends the maximum
extension, which is eight years.
2:34:47 PM
She walked the committee through the standard audit
information, stating page 8 of the audit report has
the schedule of licensing activity. As of March 2022,
there were 5,878 active licenses and permits. Licenses
increased by 28 percent compared to FY 2019. The
schedule of revenues and expenditures is on page 10.
The prior 2019 audit found that at the end of FY 2018,
this board had a deficit of approximately $800,000.
Licensing fees increased in FY 2019, and the deficit
decreased to approximately $488,000 by the end of FY
2020.
License revenues increased substantially due to the
increased number of applications during FY 2021. The
board was allotted approximately $215,000 in general
funds to replace revenue lost due to the licensing fee
freeze that the governor mandated to help mitigate the
financial impact of the pandemic. Due to the increase
in revenues and the general fund allocation, this
board had a surplus of approximately $506,000 as of
March 2022. The board's schedule of fees is on page
11.
2:36:13 PM
The audit makes two recommendations that begin on page
14. First, the Division of Legislative Audit
recommends the board's executive director ensure all
board meetings have adequate public notice. The
division reviewed 32 meetings held during the audit
period and found six were either not public noticed or
not public noticed correctly. Second, the audit
recommends the board ensure emergency regulations
comply with statute. The Division of Legislative Audit
found the courtesy license regulation for physician
assistant emergency failed to require the applicants
have a collaborative plan with the supervising
physician as required by statute. DCBPL identified
this deficiency within seven months of its effective
date and took corrective action.
Management's response to the audit begins on page 25,
and general management concurred with the report's
conclusion and recommendations.
2:37:30 PM
CHAIR BJORKMAN invited Sylvan Robb to put herself on the record
to answer questions.
2:38:06 PM
SYLVAN ROBB, Director, Division of Corporations, Business and
Professional Licensing, Department of Commerce, Community and
Economic Development, Juneau, Alaska, introduced herself.
2:38:10 PM
CHAIR BJORKMAN asked whether DCBPL had the number of staff
necessary and the infrastructure in place for this board to
handle the increased workload throughout the pandemic.
MS. ROBB replied that the division suffered severe staff
shortages during the pandemic, especially the professional
licensing team, with up to a 35 percent vacancy. The division
was short-staffed, and it was very challenging to get licenses
out.
CHAIR BJORKMAN asked if the situation is substantially fixed.
MS. ROBB replied that the division has made great strides in
getting back to adequate staffing levels. The professional
licensing team has gone from a high of more than 35 percent to a
20 percent vacancy rate. The division has about a 14 percent
vacancy rate today and is hiring people daily. She said that the
division is getting on top of it.
2:39:25 PM
CHAIR BJORKMAN asked if she sees interstate telehealth services
substantially changing the division's workload and license
processing as it relates to the State Medical Board.
MS. ROBB answered that the division has not seen a huge change
recently. The division is gathering baseline data to see how the
telehealth bill the legislature passed last year affects DCBPL
over time.
2:40:20 PM
CHAIR BJORKMAN held SB 55 in committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 02.17.23 AML Presentation to SL&C.pdf |
SL&C 2/17/2023 1:30:00 PM |
AML Presentation to SL&C 02.17.23 |
| SB 55 Version A.PDF |
SL&C 2/17/2023 1:30:00 PM |
SB 55 |
| SB 55 Sponsor Statement Version A.pdf |
SFIN 3/7/2023 9:00:00 AM SL&C 2/17/2023 1:30:00 PM |
SB 55 |
| SB 55 Fiscal Note-DCCED-CBPL 01.10.23.pdf |
SL&C 2/17/2023 1:30:00 PM |
SB 55 |
| SB 55 Supporting Document - State Medical Board Audit, July 2022.pdf |
SFIN 3/7/2023 9:00:00 AM SL&C 2/17/2023 1:30:00 PM |
SB 55 |