Legislature(2025 - 2026)BELTZ 105 (TSBldg)

03/24/2025 01:30 PM Senate LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 137 EXTEND BOARDS: MIDWIVES, NURSING, PAROLE TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+= SB 55 TRS CONTR RATE; PERS/TRS SOC SECUR OR SBS TELECONFERENCED
Moved CSSB 55(L&C) Out of Committee
-- Public Testimony <Time Limit May Be Set> --
+= SB 96 CHILD CARE: TAX CREDITS TELECONFERENCED
Moved SB 96 Out of Committee
-- Public Testimony <Time Limit May Be Set> --
Bills Previously Heard/Scheduled
**Streamed live on AKL.tv**
        SB 137-EXTEND BOARDS: MIDWIVES, NURSING, PAROLE                                                                     
                                                                                                                                
1:33:34 PM                                                                                                                    
CHAIR  BJORKMAN announced  the consideration  of SENATE  BILL NO.                                                               
137  "An Act  extending  the  termination date  of  the Board  of                                                               
Certified Direct-Entry  Midwives; extending the  termination date                                                               
of the  Board of Nursing;  extending the termination date  of the                                                               
Board of Parole; and providing for an effective date."                                                                          
                                                                                                                                
1:33:55 PM                                                                                                                    
MATT  CHURCHILL,  Staff,  Senator Jesse  Bjorkman,  Alaska  State                                                               
Legislature, Juneau, Alaska,  introduced SB 137 on  behalf of the                                                               
sponsor and  stated that the  following recommendations  are from                                                               
the  2024 state  audits.  SB 137  proposes  extending the  sunset                                                               
dates for  three professional boards.  The Board  of Direct-Entry                                                               
Midwives  and Board  of Nursing  would be  extended six  years to                                                               
June 30,  2031, and the  Board of  Parole would be  extended four                                                               
years to June 30, 2029.                                                                                                         
                                                                                                                                
1:35:35 PM                                                                                                                    
CHAIR BJORKMAN announced invited testimony on SB 137.                                                                           
                                                                                                                                
1:35:50 PM                                                                                                                    
KRIS  CURTIS,  Legislative  Auditor,  Alaska  State  Legislature,                                                               
Juneau, Alaska, testified by invitation  on SB 137. She explained                                                               
the audit for the Board of Nursing:                                                                                             
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Report Conclusions:                                                                                                        
                                                                                                                                
     The audit concluded that the  board served the public's                                                                    
     interest  by   effectively  conducting   its  meetings,                                                                    
     actively amending nursing  regulations, and effectively                                                                    
     licensing   nursing  professionals.   The  audit   also                                                                    
     concluded   that    board-related   cases    were   not                                                                    
     consistently investigated  in a timely manner,  and one                                                                    
     board position had been vacant for an extended period.                                                                     
                                                                                                                                
MS.  CURTIS  said  the audit  department  recommends  a  six-year                                                               
extension. She referred  to a chart on page 7,  exhibit 2, of the                                                               
audit report:                                                                                                                   
                                                                                                                                
     "The exhibit summarizes  our review of how  fast or how                                                                    
     timely nurses were issuing their  licenses and we found                                                                    
     of the  licenses we  reviewed that  30 percent  of them                                                                    
     had took  over four months  to be issued by  the board.                                                                    
     The  delays  were  caused  by  staff  shortages  and  a                                                                    
     significant increase in their workload."                                                                                   
                                                                                                                                
1:36:51 PM                                                                                                                    
MS. CURTIS  referred to the  chart on page  8, exhibit 3,  of the                                                               
audit report:                                                                                                                   
                                                                                                                                
     "as of  February 2024, the  board had just  over 27,000                                                                    
     active licenses and permits and  this is an increase of                                                                    
     37  percent compared  to 2018  sunset  audit. Now,  the                                                                    
     increases were mainly in the  area of registered nurses                                                                    
     who are  providing services  in Alaska  as a  result of                                                                    
     the COVID pandemic."                                                                                                       
                                                                                                                                
MS. CURTIS referred to page 10, of the audit report:                                                                            
                                                                                                                                
     "The board schedule of revenues  and expenditures is on                                                                    
     page  10 and  as  of  February 2024,  the  board had  a                                                                    
     surplus of  approximately 3.4  million and  despite the                                                                    
     large surplus,  the board and  DCPPL were  not planning                                                                    
     on  decreasing licensing  fees.  That  is because  they                                                                    
     believe that  surplus would naturally decline  and that                                                                    
     that number  of high  licenses would naturally  go down                                                                    
     and so their surplus would go down."                                                                                       
                                                                                                                                
MS. CURTIS  referred to  page 14, and  said the  audit recommends                                                               
the commissioner  work with policymakers to  improve investigator                                                               
recruitment and  retention. Of  35 board-related  cases reviewed,                                                               
25  percent  had  unjustified  inactivity,  often  due  to  staff                                                               
vacancies,  turnover,   and  lengthy   training  times   for  new                                                               
investigators.  She said  management's response  to the  audit is                                                               
found on page 23, the  commissioner and the board chair concurred                                                               
with the findings and recommendation.                                                                                           
                                                                                                                                
1:38:33 PM                                                                                                                    
MS.  CURTIS continued  with the  audit  report for  the Board  of                                                               
Parole. She said the audit  recommends the legislature extend the                                                               
board to four years, half of  the maximum allowed by statute. She                                                               
said her  reduced extension recommendation reflects  the need for                                                               
more  timely oversight.  She  referred  to page  8  of the  audit                                                               
report and  stated that when Senate  Bill 91 passed in  2017, the                                                               
board received funding  for extra staff to  handle more workload,                                                               
costing about $591,000 annually.  Hearings declined to pre-reform                                                               
levels or  lower, after House  Bill 49 repealed reforms  in 2019,                                                               
however  staff positions  were not  reduced. The  audit questions                                                               
whether  these five  positions  are still  needed  based off  the                                                               
charts referenced  on page  9, exhibits 3  and 4.  She referenced                                                               
page  10, of  the audit  report  that found  the board  generally                                                               
followed state law in conducting  parole hearings. She referenced                                                               
page 11,  exhibit 5 and  noted a decline in  discretionary parole                                                               
approvals from 63  percent before the criminal  justice reform to                                                               
25  percent after  the repeal.  The board  could not  explain the                                                               
decrease. The audit has three  recommendations that begin on page                                                               
14:                                                                                                                             
                                                                                                                                
     "Recommendation 1,  we recommend  that the  board chair                                                                    
     work with  the DOC commissioner to  ensure all hearings                                                                    
     are  conducted  in  a confidential  manner.  The  audit                                                                    
     found that  the Highland Mountain  Correctional Center,                                                                    
     preliminary   revocation   hearings   were   at   times                                                                    
     conducted  in   the  general  population   area,  which                                                                    
     violated defender's rights to confidentiality.                                                                             
                                                                                                                                
     Recommendation  2,   the  board   chair  and   the  DOC                                                                    
     commissioner should ensure  the regulations are updated                                                                    
     in  a   timely  manner.   We  found  that   the  parole                                                                    
     regulations had  not been  updated since  2015, despite                                                                    
     significant changes in statutes.                                                                                           
                                                                                                                                
     Recommendation  3, on  page 15,  we  recommend the  DOC                                                                    
     commissioner   ensure   fiscal    notes   for   pending                                                                    
     legislation reflect decreases as appropriate."                                                                             
                                                                                                                                
She said  the management's response  to the audit begins  on page                                                               
25,  the Department  of Corrections  Commissioner  and the  board                                                               
chair  agreed   with  the   audit's  recommendations   and  noted                                                               
corrective  actions on  confidentiality  and regulation  updates.                                                               
However, the  board chair disagreed  with the  audit's conclusion                                                               
about  declining parole  approval rates,  arguing that  exhibit 5                                                               
was  an  inaccurate  comparison  since  each  parole  hearing  is                                                               
unique.                                                                                                                         
                                                                                                                                
1:42:20 PM                                                                                                                    
SENATOR  DUNBAR  stated  that he  doesn't  understand  the  board                                                               
chair's response, because  parole cases were just  as unique when                                                               
the approval  rate was 63 percent  as they are now.  He asked for                                                               
an explanation  of approval  rates dropping to  about a  third of                                                               
what they used to be.                                                                                                           
                                                                                                                                
1:42:58 PM                                                                                                                    
MS. CURTIS  replied that  she cant   answer the  question because                                                               
it's  the chair's  comment. She  said  that during  a past  audit                                                               
change in parole  rates were explained. An example  of this would                                                               
be limited  community treatment  options that  once led  to fewer                                                               
releases. This audit, despite the  significant drop in approvals,                                                               
no explanation was provided.                                                                                                    
                                                                                                                                
1:43:26 PM                                                                                                                    
SENATOR DUNBAR stated  that someone that is  paroled doesn't cost                                                               
as much  as someone  that is  in the state's  custody. With  a 40                                                               
percent drop in parolees, more  individuals remain in custody. He                                                               
said that's costing  roughly $220 per day for  each person, which                                                               
could total millions for Alaska each  year. He asked if there was                                                               
a fiscal note to this cost  and how many millions of dollars does                                                               
the change in policy cost Alaska per year.                                                                                      
                                                                                                                                
1:43:54 PM                                                                                                                    
MS.  CURTIS replied  that she  wouldn't  be able  to address  the                                                               
fiscal note, as it wasn't part of the scope of the audit.                                                                       
                                                                                                                                
1:44:00 PM                                                                                                                    
SENATOR  DUNBAR asked  whether  fiscal matters  are  part of  the                                                               
audit.                                                                                                                          
                                                                                                                                
1:44:05 PM                                                                                                                    
MS. CURTIS replied  that sunset audits use 11  criteria listed in                                                               
Appendix A, and  auditors address each one.  If additional issues                                                               
arise,  the  audit will  include  them.  She said  regarding  the                                                               
fiscal impact of  the parole changes, the  audit department asked                                                               
for  an  explanation, but  none  was  provided, so  the  auditors                                                               
cannot say whether there was a financial effect.                                                                                
                                                                                                                                
1:45 :01 PM                                                                                                                   
MS.  CURTIS continued  with the  audit  report for  the Board  of                                                               
Certified Direct-Entry Midwives. She  read the conclusions of the                                                               
audit report:                                                                                                                   
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     The audit concluded that the  board served the public's                                                                    
     interest by conducting its  meetings in accordance with                                                                    
     state law and actively  amending regulations to enhance                                                                    
     public  safety and  improve the  certification process.                                                                    
     The  audit  also  concluded that  the  board  generally                                                                    
     certified midwives  in compliance  with state  law, but                                                                    
     documentation  improvements  were needed.  Furthermore,                                                                    
     the  audit found  the board  did  not audit  compliance                                                                    
     with  certification renewal  requirements  in a  timely                                                                    
     manner.                                                                                                                    
                                                                                                                                
1:45:29 PM                                                                                                                    
MS.  CURTIS recommended  a six-year  extension.  She referred  to                                                               
page 5, of  the audit report and  said there was a  change to how                                                               
midwives are certified. She said  starting January 2023, midwives                                                               
must hold  a national  Certified Professional  Midwife credential                                                               
from the North  American Registry for Midwives  (NARM), which has                                                               
led to some  duplication of state and national  functions and has                                                               
further  increased already  high  certification  costs. She  said                                                               
before the  change, midwives  already faced  some of  the highest                                                               
certification costs,  and the  new requirement  further increased                                                               
the expenses  for obtaining and maintaining  state certification.                                                               
She referred  to page 7,  exhibit 3,  that shows the  schedule of                                                               
licensing  activity  for  the  Board  of  Certified  Direct-Entry                                                               
Midwives. The  state of  Alaska has  41 certified  and apprentice                                                               
midwives and  on page 9, the  chart shows a $77,000  surplus. She                                                               
said the  audit report includes three  recommendations that start                                                               
on page 12:                                                                                                                     
                                                                                                                                
     "Recommendation   1,  we   recommend   Office  of   the                                                                    
     Governor,  Boards and  Commissions  Director work  with                                                                    
     the  Board  to fill  vacant  board  seats in  a  timely                                                                    
     manner. This has to do  with the vacant physician seat.                                                                    
     It's one of the five  members, and it's been vacant for                                                                    
     many years.                                                                                                                
                                                                                                                                
     Recommendation   2,   for  Division   of   Corporations                                                                    
     Business  and Professional  Licensing (DCBPL)  Director                                                                    
     to  improve  training,  to  ensure  certifications  are                                                                    
     supported by adequate documentation,  and for the Board                                                                    
     to thoroughly review  applications before approval. And                                                                    
     this recommendation  comes from an error  we found when                                                                    
     testing license  process regarding  incomplete clinical                                                                    
     verification information.                                                                                                  
                                                                                                                                
     Recommendation  3,   on  page  13,  we   recommend  the                                                                    
     Commissioner  work  with  policymakers to  improve  the                                                                    
     recruitment and  retention of licensing staff.  So this                                                                    
     has to  do with finding  that the DCBPL staff  were not                                                                    
     auditing  compliance with  renewal requirements  due to                                                                    
     changes in management and staffing shortages.                                                                              
                                                                                                                                
MS. CURTIS stated that management's  response to the audit report                                                               
begins  on page  23, and  agreed with  their recommendations  and                                                               
conclusions. She  said that  the Board  chair is  less receptive,                                                               
and  her  response  starts  on   page  27.  She  noted  that  the                                                               
recommendations primarily  target the  Office of the  Governor or                                                               
DCPPL and  therefore requested an eight-year  extension. She said                                                               
this  is  the  third  audit  cycle  for  this  board,  which  has                                                               
previously received  one four-year and three  two-year extensions                                                               
over  the  last  four  sunset cycles.  A  six-year  extension  is                                                               
recommended.                                                                                                                    
                                                                                                                                
1:48:59 PM                                                                                                                    
SYLVAN  ROBB, Director,  Division of  Corporations, Business  and                                                               
Professional Licensing  (DCBPL), Anchorage, Alaska,  testified by                                                               
invitation  on  SB  137.  She  stated that  the  DCBPL  has  made                                                               
significant efforts  to improve investigator recruitment  for the                                                               
Board  of Nursing,  including better  outreach, making  positions                                                               
more  appealing,   reducing  spans  of  control,   and  providing                                                               
additional  training. These  steps have  shown positive  results,                                                               
and  similar audit  recommendations on  investigation delays  are                                                               
not expected  in the next  cycle. She  stated that the  audit for                                                               
the  Board  of Certified  Direct-Entry  Midwives  made three  key                                                               
recommendations:                                                                                                                
                                                                                                                                
First, it  noted the  need to  fill the  long-vacant physician/OB                                                               
board  seat,  which  has  been  challenging  due  to  a  lack  of                                                               
interested  candidates.  She said  DCBPL  are  making efforts  to                                                               
assist the Governor's Office in finding someone.                                                                                
                                                                                                                                
Second,  the   audit  report  recommended  was   ensuring  proper                                                               
documentation and that board members  thoroughly review it before                                                               
issuing  licenses. In  response, positions  were reclassified  to                                                               
create  more supervisors  with smaller  spans  of control,  staff                                                               
training was improved, and robust  board training is now provided                                                               
through a dedicated board advisor.                                                                                              
                                                                                                                                
Third,  the audit  highlighted  the need  to  recruit and  retain                                                               
licensing  staff. The  division  updated  job classifications  to                                                               
provide clearer  career paths and advancement  opportunities, and                                                               
early results show positive outcomes,  with several staff already                                                               
promoted within the division.                                                                                                   
                                                                                                                                
1:53:06 PM                                                                                                                    
HOLLY STEINER, Chair, Board  of Certified Direct-Entry Midwifery,                                                               
Wasilla, Alaska,  testified by  invitation on  SB 137  and stated                                                               
that the board has worked  to address previous staffing and board                                                               
seat  vacancy issues,  and the  most  recent audit  in June  2024                                                               
noted  their  progress.  Four  of  five  seats  are  now  filled,                                                               
including the  OB doctor seat,  with only the public  member seat                                                               
remaining vacant. She  said staffing has improved  with a skilled                                                               
licensing  examiner in  place. The  board updated  regulations to                                                               
require  nationally recognized  certified professional  midwives,                                                               
though  increasing licensing  costs  by $210  every three  years,                                                               
this change  is supported  by most  midwives and  has streamlined                                                               
licensure by shifting much of  the work to the national registry.                                                               
Overall, the board and staff  have made significant improvements,                                                               
and the  recent audit  supports a  six-year extension,  which the                                                               
board endorses.                                                                                                                 
                                                                                                                                
1:56:03 PM                                                                                                                    
DANETTE SCHLOEDER,  Chair, Board  of Nursing,  Anchorage, Alaska,                                                               
testified  by invitation  on SB  137 and  stated that  the Alaska                                                               
Board of  Nursing is essential  for protecting public  health and                                                               
maintaining high  nursing standards  across the state.  The board                                                               
ensures  nurses are  well-trained, licensed,  and uphold  ethical                                                               
and  clinical  standards,  which safeguards  patient  safety  and                                                               
healthcare quality. She said extending  the board supports public                                                               
trust in  nurses  competence, employers  confidence  in licensure                                                               
requirements,  and  nurses   trust   in  a  governing  body  that                                                               
advocates for their profession.                                                                                                 
                                                                                                                                
1:58:03 PM                                                                                                                    
LEITONI  TUPOU,  Chair,  Board   of  Parole,  Anchorage,  Alaska,                                                               
testified by  invitation on  SB 137 and  stated that  he reviewed                                                               
the 2019  legislative audit and  found some  recommendations that                                                               
had not  been fully addressed. He  said he has been  working with                                                               
the Department  of Corrections and  has completed nearly  all the                                                               
recommendations. He expressed concern that  with the reduction in                                                               
caseloads,  the extra  positions  created under  Senate Bill  91,                                                               
were no longer  justified. He said he worked  with the Department                                                               
of  Corrections and  even the  Governor's office  to address  the                                                               
issue, leading  to staffing changes  within the Board  of Parole.                                                               
While not all  questions are resolved, the matter  remains a work                                                               
in progress.                                                                                                                    
                                                                                                                                
1:59:55 PM                                                                                                                    
SENATOR  DUNBAR  highlighted the  audit  report's  findings of  a                                                               
decline in  discretionary parole hearings, noting  they increased                                                               
from 2016  to 2018 but  have since  fallen below 2016  levels. He                                                               
asked  what   distinguishes  discretionary  hearings   from  non-                                                               
discretionary and what factors explain the significant decrease.                                                                
                                                                                                                                
2:00:34 PM                                                                                                                    
MR. TUPOU  replied that Senate  Bill 91  caused a major  spike in                                                               
discretionary  parole  hearings  by requiring  all  offenders  to                                                               
apply,  resulting in  a 600  percent increase  from the  previous                                                               
year.  After  Senate   Bill  91  was  repealed,   the  number  of                                                               
applications dropped,  leading to the current  decrease in parole                                                               
applications.  He   stated  there   are  two  types   of  parole:                                                               
discretionary   and   mandatory.  Discretionary   parole   allows                                                               
offenders to apply  for early release after  serving one-third of                                                               
their sentence, but  the Board decides whether to  grant it based                                                               
on four  legal criteria such  as the seriousness of  the offense,                                                               
risk of  reoffending, and  victim input.  He said  offenders have                                                               
the right to a hearing, but  release is ultimately at the Board's                                                               
discretion. He  said that mandatory  parole applies  to sentences                                                               
of  two years  or more  and requires  release after  serving two-                                                               
thirds of the  sentence. The individual is  released under parole                                                               
supervision,  with   conditions  and  if  those   conditions  are                                                               
violated,  the  board  decides whether  the  parolee  returns  to                                                               
custody  or   are  given  another  chance   through  programs  to                                                               
reintegrate into the community.                                                                                                 
                                                                                                                                
2:03:38 PM                                                                                                                    
SENATOR DUNBAR observed  on page 9, exhibit 3 and  4, that Senate                                                               
Bill 91 led  to a sharp increase in parole  hearings. On page 11,                                                               
the  chart shows  the approval  rate  has remained  significantly                                                               
lower than it was in 2014  and 2015. He asked whether the decline                                                               
was due to changes in the  types of crimes committed or in parole                                                               
requests.                                                                                                                       
                                                                                                                                
2:04:37 PM                                                                                                                    
MR. TUPOU replied that a detailed  study needs to be conducted to                                                               
answer the  question. He explained  that the 2024 data  came from                                                               
181  discretionary  parole  hearings.  Each case  is  unique  and                                                               
considered individually  based on factors like  offense type. For                                                               
example,  of  the  181  discretionary  parole  hearings  58  were                                                               
assault  cases,   22  were  driving  offenses.   He  argued  that                                                               
collectively  comparing cases  from  one year  to previous  years                                                               
does not make sense.                                                                                                            
                                                                                                                                
2:06:35 PM                                                                                                                    
CHAIR BJORKMAN held SB 137 in committee.                                                                                        

Document Name Date/Time Subjects
SB137 Ver. A.pdf SL&C 3/24/2025 1:30:00 PM
SB 137
SB137 Sponsor Statement Ver. A.pdf SFIN 4/15/2025 9:00:00 AM
SL&C 3/24/2025 1:30:00 PM
SB 137
SB137 Sectional Analysis Ver. A.pdf SFIN 4/15/2025 9:00:00 AM
SL&C 3/24/2025 1:30:00 PM
SB 137
SB137 Fiscal Note-DCCED-CBPL 03.21.25.pdf SL&C 3/24/2025 1:30:00 PM
SB 137
SB137 Fiscal Note-DOC-PAB 03.21.25.pdf SL&C 3/24/2025 1:30:00 PM
SB 137
SB137 Supporting Documents - Audit Midwives.pdf SFIN 4/15/2025 9:00:00 AM
SL&C 3/24/2025 1:30:00 PM
SB 137
SB137 Supporting Documents - Audit Parole.pdf SFIN 4/15/2025 9:00:00 AM
SL&C 3/24/2025 1:30:00 PM
SB 137
SB137 Supporting Documents - Audit Nursing.pdf SFIN 4/15/2025 9:00:00 AM
SL&C 3/24/2025 1:30:00 PM
SB 137
SB137 Public Testimony-Letter-Board of Direct Entry Midwives 03.19.25.pdf SL&C 3/24/2025 1:30:00 PM
SB 137