03/31/2025 03:15 PM House LABOR & COMMERCE

                      SB 80-EXTEND BOARDS                                                                                   
                                                                                                                                
3:42:35 PM                                                                                                                    
                                                                                                                                
CO-CHAIR HALL announced that the  next order of business would be                                                               
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."                                                                  
                                                                                                                                
3:43:51 PM                                                                                                                    
                                                                                                                                
SENATOR  JESSE  BJORKMAN,  Alaska  State  Legislature,  as  prime                                                               
sponsor, presented  SB 80 as  prime sponsor.  He  paraphrased the                                                               
sponsor statement  [included in  the committee file],  which read                                                               
as follows [original punctuation provided]:                                                                                     
                                                                                                                                
     Senate Bill  80 proposes to  extend the sunset  date of                                                                    
     four   boards,  Board   of   Massage  Therapists,   the                                                                    
     Marijuana  Control Board,  Alaska Commission  on Aging,                                                                    
     and the Big Game Commercial Services Board.                                                                                
                                                                                                                                
     The Board  of Massage  Therapists is comprised  of five                                                                    
     members appointed  by the Governor.  The duties  of the                                                                    
     Board  include examining  massage therapist  applicants                                                                    
     and  issuing  licenses,  adoption of  regulations,  and                                                                    
     establishing standards  of professional  competence. In                                                                    
     the  fall  of  2023,   Division  of  Legislative  Audit                                                                    
     completed a sunset  audit report of the  Board. In this                                                                    
     audit  it was  determined that  overall, the  Board has                                                                    
     operated  in the  public's interest  by conducting  its                                                                    
     meetings  in an  effective manner  as well  as actively                                                                    
     amending  regulations  to  address  statutory  changes,                                                                    
     improving the  licensing process, and  enhancing public                                                                    
     safety.                                                                                                                    
                                                                                                                                
     The Big Game Commercial  Services Board is comprised of                                                                    
     nine members  appointed by the Governor.  The duties of                                                                    
     the  Board are  maintaining  and writing  examinations,                                                                    
     generating    reports,    and   licensing    functions.                                                                    
     Legislative Audit  conducted a  sunset audit  report of                                                                    
     the Board  in the summer  of 2023. The  audit concluded                                                                    
     that  the Board  operated in  the public's  interest by                                                                    
     conducting  its   meetings  in  an   effective  manner,                                                                    
     supporting  statutory  changes when  deemed  necessary,                                                                    
     and actively amending regulations.                                                                                         
                                                                                                                                
     The  Marijuana  Control  Board  is  comprised  of  five                                                                    
     members appointed  by the Governor and  is a regulatory                                                                    
     and  quasi-judicial board  created for  the purpose  of                                                                    
     controlling the  cultivation, manufacture, and  sale of                                                                    
     marijuana in the state. The  duties of the Board are to                                                                    
     propose     and     adopt    regulations,     establish                                                                    
     qualifications for  licensure, review  applications for                                                                    
     licensure,  order  the  executive  director  to  issue,                                                                    
     renew, suspend,  or revoke a license,  and hear appeals                                                                    
     from the  Board Director  and from actions  of officers                                                                    
     and  employees charged  with  enforcing Board  statutes                                                                    
     and regulations.                                                                                                           
                                                                                                                                
     The Alaska  Commission on Aging is  comprised of eleven                                                                    
     members   that   make    legislation   and   regulation                                                                    
     recommendations  to  the  governor and  legislature  to                                                                    
     benefit  older  Alaskans.  The   duties  of  the  board                                                                    
     include   helping   older  Alaskans   lead   dignified,                                                                    
     independent,   and   useful  lives,   encouraging   the                                                                    
     development  of  municipal commissions  and  community-                                                                    
     oriented  programs   and  services  to   benefit  elder                                                                    
     Alaskans,  and  upon  request, the  commission  assists                                                                    
     Alaska  Housing  Finance   Corporation  senior  housing                                                                    
     office for senior housing loan program.                                                                                    
                                                                                                                                
3:46:05 PM                                                                                                                    
                                                                                                                                
KRIS  CURTIS, Legislative  Auditor,  Legislative Audit  Division,                                                               
Legislative Agencies and Offices,  began her invited testimony to                                                               
report on  a series of  audits related to  SB 80.   She explained                                                               
that  the division  conducted sunset  audits of  all four  boards                                                               
mentioned by Senator  Bjorkman.  She began with  the sunset audit                                                               
on  the  Marijuana  Control  Board,  stating  that  the  division                                                               
concluded  that   it  was  serving  the   public's  interest  and                                                               
recommended  a  three-year extension.    She  explained that  the                                                               
division's recommendation  was made in  light of a  report issued                                                               
by the  Governor's Advisory Task Force  on Recreational Marijuana                                                               
cautioning  that there  may be  significant changes  to both  the                                                               
Marijuana  Control Board's  duties  and the  Alcohol &  Marijuana                                                               
Control  Office  (AMCO).    She additionally  noted  that  a  new                                                               
information system expected to be  implemented by the end of 2023                                                               
would significantly change the  Marijuana Control Board's license                                                               
and  enforcement  processes.     She  stated  that  a  three-year                                                               
extension would  be timelier to review  these significant changes                                                               
and would  additionally align  the sunset  date of  the Marijuana                                                               
Control Board with AMCO.                                                                                                        
                                                                                                                                
MS.  CURTIS  spoke to  three  recommendations:   AMCO's  director                                                               
should establish procedures to ensure  that the marijuana handler                                                               
permit   documentation  was   "properly  maintained,"   the  AMCO                                                               
director  continues to  implement a  new license  and enforcement                                                               
database, and  lastly, the  legislature should  require marijuana                                                               
board regulations to be approved by a majority of board members.                                                                
                                                                                                                                
MS.  CURTIS moved  to the  second sunset  audit on  the Board  of                                                               
Massage  Therapists,  noting that  it  was  serving the  public's                                                               
interest and  recommending a  six-year extension.   Additionally,                                                               
she   recommended  that   the  director   of   the  Division   of                                                               
Corporations, Business and  Professional Licensing (DCBPL) create                                                               
a  procedure to  ensure that  licenses  are not  approved with  a                                                               
basis on  outdated documentation.  The  division also recommended                                                               
that the  commissioner of the Department  of Commerce, Community,                                                               
and  Economic  Development  (DCCED) "work  with  policymakers  to                                                               
improve the  recruitment and retention  of investigators  ... and                                                               
licensing  staff."     Lastly,  she  stated   that  the  division                                                               
recommended an increase in licensing fees.                                                                                      
                                                                                                                                
MS.  CURTIS moved  to  the third  sunset audit  on  the Big  Game                                                               
Services  Commercial   Board  (BGCSB),  noting  that   BGCSB  was                                                               
operating in  the public's interest  and recommending  a six-year                                                               
extension.   She  stated  that the  division  had two  additional                                                               
recommendations:  the DCBPL director  should improve oversight to                                                               
ensure   the  procurement   and  review   of  required   licensed                                                               
documentation, and  BGCSB should reconsider the  necessity of two                                                               
private landholder board seats in effective regulations.                                                                        
                                                                                                                                
MS. CURTIS  finished with the  fourth sunset audit on  the Alaska                                                               
Commission  on  Aging (ACoA),  concluding  that  ACoA served  the                                                               
public's  interest by  "helping  older  Alaskans lead  dignified,                                                               
independent,  and useful  lives through  advocacy, outreach,  and                                                               
education."   She  further  noted that  ACoA  fulfills a  federal                                                               
requirement for each  state to establish a council  to advise the                                                               
state   on   matters   of   aging,   including   developing   and                                                               
administering  a  state  plan.    She  noted  that  the  division                                                               
recommended   an   eight-year   extension  of   ACoA   with   one                                                               
recommendation that ACoA's chair  ensure that the annual analysis                                                               
and   evaluation  report   is  complete   and  provided   to  the                                                               
legislature and the governor as required by Alaska Statute (AS).                                                                
                                                                                                                                
3:50:09 PM                                                                                                                    
                                                                                                                                
ANNETTA  ATWELL, Chair,  Board of  Massage Therapists,  began her                                                               
invited testimony  on SB  80.   She explained  that the  Board of                                                               
Massage  Therapists serves  legislative,  judicial and  executive                                                               
functions.   She explained that  the Board of  Massage Therapists                                                               
"creat[es]  ...  regulations,   adapting  existing  statutes  and                                                               
regulations  to  keep  the  State  of  Alaska  updated  with  the                                                               
national  trends  and  standards"  in  adherence  to  legislative                                                               
responsibilities.     She  stated  that  the   Board  of  Massage                                                               
Therapists   protects  stakeholders   through  the   creation  or                                                               
amendment of  new or existing  laws and regulations  that require                                                               
updates.   She  further  explained that  the board  "interpret[s]                                                               
statutes   and  regulations"   when   considering  questions   of                                                               
licensing, renewal  of license, investigations, and  questions of                                                               
qualifications for  continuing education  to uphold  its judicial                                                               
responsibilities.  She explained  that the executive functions of                                                               
the  Board of  Massage Therapists  include ensuring  constituents                                                               
are up to date with  the "requirements of their licensure, scope,                                                               
and practice."   She noted  that the board  applies consequences,                                                               
when necessary, that are agreed upon  by the majority.  She noted                                                               
that  the board  is financially  stable,  and that  she had  been                                                               
advised  during the  sunset audit  to increase  fees to  meet the                                                               
demands of  investigative responsibilities  and the  board's day-                                                               
to-day  operations.   She stated  that the  board was  waiting on                                                               
legislative review and finalization before increasing its fees.                                                                 
                                                                                                                                
MS. ATWELL spoke  to investigations that focused  on "bad actors"                                                               
and  those practicing  without a  license.   She  noted that  the                                                               
Board of Massage Therapists would  be grateful to the legislature                                                               
if it were to  create a bill to take on  investigative fees.  She                                                               
stated that the  remaining findings of the  audit were concerning                                                               
Alaska's  Division  of  Corporations, Business  and  Professional                                                               
Licensing,  noting  that  the Board  of  Massage  Therapists  was                                                               
awaiting  legislation to  increase  its fees.    She thanked  the                                                               
committee for its time.                                                                                                         
                                                                                                                                
3:53:22 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease at 3:53 p.m.                                                                                 
                                                                                                                                
3:53:33 PM                                                                                                                    
                                                                                                                                
BAILEY STUART, Chair, Marijuana  Control Board, began her invited                                                               
testimony  by  stating that  the  Marijuana  Control Board  fully                                                               
supported the  recommendations made  by the division  as proposed                                                               
under  SB 80.   She  stated that  the extension  was critical  to                                                               
oversight and stability of the  [marijuana] industry.  She stated                                                               
that the  [marijuana] industry was facing  significant challenges                                                               
from  federal  shipping  policies  to public  health  and  safety                                                               
concerns in Alaska.   Alaska has a prolific  illicit market which                                                               
is  a serious  threat to  the regulated  industry.   She asserted                                                               
that  Alaska  has  knowingly   shielded  illicit  operators  from                                                               
prosecution.   She stated  that the  illicit market  continues to                                                               
operate outside of state oversight,  avoid taxation, and directly                                                               
undermine  legal businesses.    She asserted  that  this lack  of                                                               
accountability  creates  an  unfair  competitive  advantage  that                                                               
jeopardizes  the  "vitality  and stability  of  compliant,  legal                                                               
operators."                                                                                                                     
                                                                                                                                
MS. STUART stated  that despite recent regulatory  changes by the                                                               
Division    of   Agriculture    prohibiting    any   amount    of                                                               
tetrahydrocannabinol (THC)  in hemp  products, the  "gray market"                                                               
consisting  of unregulated  hemp products  with THC  continues to                                                               
enter  Alaska's  marketplace, retail  stores,  and  homes via  e-                                                               
commerce  with no  enforcement.   She  reported  that during  the                                                               
Board  of  Marijuana's  meeting  in  February,  it  heard  public                                                               
testimony  detailing  the  severity  of these  challenges.    She                                                               
stated  that the  industry was  grappling  with these  unforeseen                                                               
markets, as  well as navigating  complex taxation concerns.   She                                                               
asserted that  the extension  recommended by  SB 80  was critical                                                               
for the  Board of  Marijuana to continue  its work  in addressing                                                               
these issues.   She stated that she would be  happy to answer any                                                               
questions regarding SB 80 and the Board of Marijuana extension.                                                                 
                                                                                                                                
3:56:08 PM                                                                                                                    
                                                                                                                                
KEVIN RICHARD,  Director, Alcohol  and Marijuana  Control Office,                                                               
stated that he was online to answer questions.                                                                                  
                                                                                                                                
3:56:46 PM                                                                                                                    
                                                                                                                                
CO-CHAIR HALL announced that SB 80 was held over.