Legislature(2025 - 2026)ADAMS 519
05/07/2025 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB123 | |
| HB78 | |
| SB80 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 78 | TELECONFERENCED | |
| + | SB 80 | TELECONFERENCED | |
| += | SB 57 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 123 | TELECONFERENCED | |
CS FOR SENATE BILL NO. 80(FIN)
"An Act extending the termination date of the Big Game
Commercial Services Board; extending the termination
date of the Board of Massage Therapists; extending the
termination date of the Alaska Commission on Aging;
extending the termination date of the Marijuana
Control Board; and providing for an effective date."
3:45:53 PM
Co-Chair Foster turned to the next item on the agenda.
SAVAYA BIEBER, STAFF, SENATOR JESSE BJORKMAN, communicated
the sponsor's apologies for not being present; he was
currently in another bill hearing. She reviewed the bill
with prepared remarks:
This bill extends the sunset date of four boards, the
Board of Massage Therapy, Marijuana Control Board,
Alaska Commission on Aging, and the Big Game
Commercial Services Board.
SB 80 is a cleanup bill from last year, it backdates
these board extensions back to June of 2024, and
extends them again as amended in the bill.
The Board of Massage Therapists is comprised of five
members that examine applications and issue licenses,
adopt, and enforce regulations, and establish
standards of professional competence.
The Marijuana Control Board is comprised of five
members that control the cultivation, manufacture, and
sale of marijuana in the state.
Alaska Commission on Aging is comprised of eleven
members who help seniors lead dignifies lives, provide
recommendations to Alaska House Finance Corp, and make
recommendations to the Governor and Legislature.
The Big Game Commercial Services Board is comprised of
nine members who prepare, and grade written and
practical guiding examinations, issue guide license,
adopt regulations, and assist DPS and DCCED in big
game investigations.
All four 2023 board audits concluded that the board
operated in the public's interest by actively amending
regulations, conducting meetings in an effective
manner, and enhancing public safety.
3:49:00 PM
Co-Chair Foster asked the legislative auditor to provide
any comments.
KRIS CURTIS, LEGISLATIVE AUDITOR, DIVISION OF LEGISLATIVE
AUDIT, introduced herself and relayed that the Division of
Legislative Audit conducted sunset audits of all four of
the boards being extended via SB 80. She planned to explain
the recommended extensions and would review audit
recommendations. She provided prepared remarks:
The first sunset report is on the Marijuana Control
Board. We recommended a three year extension. The
three-year extension recommendation is made in
recognition that a report issued by the governor's
Advisory Task Force on Recreational Marijuana was
expected lead to significant changes to board and the
Alcohol and Marijuana Control Office's duties, and a
new information system, was expected to significantly
change the board's licensing and enforcement
processes. A three-year extension would allow for a
timely evaluation of these substantial changes and
align the board's next sunset review with the
Alcoholic Beverage Control Board's sunset and allow a
comprehensive review of AMCO's support to both boards.
The audit includes four recommendations that begin on
page 20. First, we recommend AMCO's director establish
procedures to ensure the marijuana handler permit
documentation is properly maintained.
Second, we recommend that the board and the AMCO
director continue to implement a new license and
enforcement information system.
Lastly, recommendation 3 on page 21, we recommend the
legislature consider requiring Marijuana board
regulation changes be approved by a majority of board
members.
3:50:50 PM
Representative Stapp thanked Ms. Curtis for her work. He
asked about the problems identified with making cash
deposits and enforcement issues with illegal grow
operations. He asked for comment. Ms. Curtis replied that
the audit did not look at cash transportation. The audit
simply looked at the board functions. She requested
clarification on his second question. Representative Stapp
thought the issue was likely outside the purview of the
board. He related that many individuals in the industry
were perturbed by the lack of enforcement with black market
grow operations. He asked if the issue was addressed in the
audit. Ms. Curtis cited page 13 of the audit and noted
enforcement was addressed. The page contained a snapshot of
how much enforcement happened during the audit period. She
did not believe it would include criminal black market
activity as it was a law enforcement issue.
Representative Galvin referenced audit recommendation 3
that recommend the legislature consider requiring marijuana
board regulation changes be approved by a majority of board
members. She asked for more context on the recommendation.
Ms. Curtis replied that page 9 of the audit contained a
summary of all the meetings that were held. She informed
the committee that for regulation changes the board
required a majority vote with a quorum present. She relayed
that on June 2021, the board passed an increase on the
level of THC in edibles with 3 votes present but had one
nay vote by public safety and its rural members were
absent. She indicated that the action was legal however,
the audit questioned whether it was in the public's best
interest. She noted that licensing actions required a vote
by the majority of board members while regulation changes
required a simple majority of members present. The audit
merely wanted to bring awareness to the situation.
3:54:40 PM
Representative Galvin asked how the audits recommendation
fit in with other boards that dealt with health issues. Ms.
Curtis replied that she did not know about other boards'
participation but thought the vote was concerning.
3:55:40 PM
Ms. Curtis addressed the audit recommendation for the Board
of Massage Therapists with prepared remarks:
The next sunset audit is over the Board of Massage
Therapists. We recommended a 6 year extension.
The audit includes four recommendations that begin on
page 12. First, we recommend the DCBPL's director
develop procedures to ensure licenses are not approved
based on outdated documentation.
Second recommendation we recommend DCCED's
commissioner work with policy makers to improve the
recruitment and retention of investigators.
Recommendation 3 is similar we recommend the
commissioner work with policy makers to improve the
recruitment and retention of licensing staff.
Recommendation 4 is on page 14; We recommend the board
and DCBPL director consider increasing licensing fees
to cover the cost of regulating the profession.
3:56:24 PM
Ms. Curtis addressed the audit recommendations for the Big
Game Commercial Services Board:
The third sunset audit report you have in your meeting
packets is on the Big Game Commercial Services Board.
We recommend the legislature extend this board six
years.
The audit makes 2 recommendations that begin on page
13. Recommendation 1: DCBPL's director should improve
oversight procedures to ensure required licensure
documentation is obtained and reviewed.
Recommendation 2 is on page 14. We recommend the board
consider whether two private landholder board seats
continue to be necessary for effective regulation.
Co-Chair Foster asked for more detail on the second
recommendation. Ms. Curtis replied that the audit
discovered that one private landholder board seat was
vacant for 12 months with unexcused absences for 7 months
and the second board seat was vacant for 31 months. The two
seats lacked participation for most of the board meetings.
A similar finding was made for the 2018 audit. She related
that no one on the board seemed concerned about having the
private landholder's particular perspective brought to the
board. The audit brought it to the board's attention and
their response was that the Governor's office should do a
better job recruiting for the vacant seats.
3:58:04 PM
Ms. Curtis reviewed the eight-year extension recommendation
for the Alaska Commission on Aging:
The last board extension for your consideration is the
Alaska Commission on Aging. We recommend an extension
of eight years.
The report includes one recommendation which you can
find on page 11. We recommend that the commission's
chair ensure the annual analysis and evaluation report
is complete and provided to the legislature and
governor.
Co-Chair Foster OPENED public testimony.
Co-Chair Foster CLOSED public testimony.
3:59:29 PM
Co-Chair Foster request a review of the 3 fiscal notes.
Representative Hannan asked if there was no fiscal note for
the Big Game Commercial Services Board.
BRODIE ANDERSON, STAFF, REPRESENTATIVE NEAL FOSTER, replied
that he would double check on the fourth fiscal note, but
he believed that only 3 had been submitted. He reviewed the
fiscal note from the Department of Commerce, Community and
Economic Development (DCCED) (FN3(CED) for the Board of
Massage Therapists and the Big Game Commercial Services
Board. He reported that the total was $53,000 and the
amount was included in the governor's FY 26 budget. He
specified that $48.5 thousand was included for travel
($20.3 for 5 members of the Board of Massage Therapists and
1 staff member, and $28.2 for 9 members of the Big Game
Commercial Services Board and 2 staff members, to attend
four meetings of their respective boards per year). In
addition, the fiscal note included $4.5 thousand for
services such as advertising of public meeting notices,
training and conference fees, and board member stipends.
4:03:03 PM
Representative Allard voiced that the state was in a
"really bad fiscal crunch. She asked if there was a reason
the boards could not hold meetings over Zoom.
SYLVAN ROBB, DIRECTOR, DIVISION OF CORPORATIONS, BUSINESS
AND PROFESSIONAL LICENSING, DEPARTMENT OF COMMERCE,
COMMUNITY AND ECONOMIC DEVELOPMENT (via teleconference),
highlighted that all of the spending came from Designated
General Funds (DGF) from the boards licensing fees. The
Big Game Services Board regulation changes required board
members to be in person due to their duty to administer
examinations.
4:05:33 PM
Mr. Anderson reviewed the second DCCED fiscal note (FN2
CED) for the Alcohol and Marijuana Control Office. He noted
that the amount was included in the governor's FY 26
budget. He reported that the personal services line totaled
$1.273 million for 10 full time positions: one Special
Investigator 2, three Special Investigators 1, three
Licensing Examiner 2, one Program Coordinator 2, one
Licensing Examiner 3, and one Local Government Specialist
4. The travel line totaled $92.5 thousand broken down by
the $62.5 thousand for five board members and two staff
members to attend five board meetings per year; $15.0
thousand for enforcement travel for inspections, audits,
and investigations; $15.0 thousand for director or staff
travel for conferences and or training. He moved to the
services line totaling $709.4 thousand for services
provided to AMCO through reimbursable services agreements
including Department of Law, Administrative Services,
Office of Administrative Hearings, Department of Public
Safety, Public Notice Advertisements, Postage, Lease Space,
and other statewide core services costs. He noted that the
Commodities line totaled $62.9 thousand for $17.9 thousand
in printing materials - required signs for licensees,
licenses, statute books; $25.0 thousand enforcement
supplies and ammunition; $20.0 thousand for office
supplies; and finally the Capital Outlay was $12.5 thousand
for vehicle costs. He also noted the change in revenues of
Unrestricted General Fund (UGF) that included $19.100
thousand UGF and $2.131.2 million DGF for a total of
$2.150.3 million. He specified that the all the funding was
derived from licensing fees collected, required by statute
and the small injection of UGF.
4:08:53 PM
Mr. Anderson reviewed the Department of Health fiscal note
(FN3 (DOH) for the Alaska Commission on Aging. He pointed
to the personal services line totaling $336 thousand for
two full time positions for the Alaska Commission on Aging
to fulfill its statutory responsibilities. The travel line
totaled $70.5 thousand and $48.2 thousand in services, and
$8 thousand in commodities totaling $462.7 thousand from a
combination of $261.3 thousand in Interagency Receipts and
$201.4 thousand in Mental Health Trust Receipt Authority
(MHTRA).
Representative Allard asked for verification that there
were no general fund expenditures. Mr. Anderson replied
that there was no UGF for the Commission on Aging.
Representative Allard asked if there was UGF on any of the
other boards. Mr. Anderson replied that there was $19.000
thousand UGF for AMCO.
4:11:21 PM
KEVIN RICHARD, DIRECTOR, ALCOHOL AND MARIJUANA CONTROL
OFFICE, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT (via teleconference), would have to follow up
with a written response.
Representative Allard would appreciate the information.
Co-Chair Foster recapped that the bill had passed in the
prior year but violated the single subject rule [and was
vetoed.] It was heard it the prior year. He asked if it was
the will of the committee to move the bill out of
committee.
Representative Hannan wanted to see the committee move the
bill quickly. She noted that one of the fiscal notes only
applied to FY 26 and FY 27 and if the legislature did not
get the bill passed in the current year there were two
boards that would have to go into statutory shutdown. She
acknowledged that there was $19.1 thousand in UGF in the
AMCO fiscal note, but it would cost that much to wind down
the board and restart it. She would like to see the bill
moved in the current week. She reminded the committee that
if the bill was amended it would push a board into another
audit cycle.
Representative Allard did not have a problem with moving
the bill, but her concern was that the boards were self-
funded, and she was trying to determine why the board could
not explain why UGF funds were necessary.
Co-Chair Foster noted that the bill could be heard the
following day with an answer.
4:15:40 PM
Ms. Curtis pointed to page 17 of the AMCO audit. She
relayed that the fees exceeded the cost of regulation. The
legislature included intent language that set the fees to
cover the costs of establishing the board that was $5.5
million. Therefore, AMCO was adding money to GF in
repayment. She noted that at the end of the audit they
still owed $868 thousand and projected that it would be
paid off by FY 24. The audit was done in 2023. She pointed
out that AMCO fees were consistently set higher than the
cost of regulating.
Representative Tomaszewski looked at Sections 1 and 2 in
the bill and noted the date changes to 2024 and then to
2032.
Ms. Bieber replied that when the legislature had passed SB
189 the prior year the dates were extended. She clarified
that the bill had not been vetoed but was under litigation
and was technically a law. Therefore, SB 80 was backdating
what is in current statute in order to "clean the slate.
Co-Chair Schrage supported hearing the bill the following
day.
Co-Chair Foster stated it would be added to an agenda the
following day.
HB 80 was HEARD and HELD in committee for further
consideration.
Co-Chair Foster reviewed the schedule for the following
day.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB80 BGCSB Audit 06.22.23.pdf |
HFIN 5/7/2025 1:30:00 PM |
SB 80 |
| SB80 Commission on Aging Audit Ver. N 10.06.23.pdf |
HFIN 5/7/2025 1:30:00 PM |
SB 80 |
| SB80 Board of Massage Therapists Audit 8.14.23.pdf |
HFIN 5/7/2025 1:30:00 PM |
SB 80 |
| SB80 Explanation of Changes 34-LS0416A to 34-LS0416N 03.10.25.pdf |
HFIN 5/7/2025 1:30:00 PM |
SB 80 |
| SB80 Letter of Support APHA 02.04.25.pdf |
HFIN 5/7/2025 1:30:00 PM |
SB 80 |
| SB80 Marijuana Control Board Audit 10.30.23.pdf |
HFIN 5/7/2025 1:30:00 PM |
SB 80 |
| SB80 Sectional Analysis 34-LS0416N 03.10.25.pdf |
HFIN 5/7/2025 1:30:00 PM |
SB 80 |
| SB80 Sponsor Statement 34-LS0416N 03.10.25.pdf |
HFIN 5/7/2025 1:30:00 PM |
SB 80 |
| HB 78 Amendment 5 Backup Stapp 050725.pdf |
HFIN 5/7/2025 1:30:00 PM |
HB 78 |
| HB 78 Amendments w Actions 050725.pdf |
HFIN 5/7/2025 1:30:00 PM |
HB 78 |
| HB 78 Public Testimony Rec'd by 050725.pdf |
HFIN 5/7/2025 1:30:00 PM |
HB 78 |