03/01/2023 03:15 PM House LABOR & COMMERCE

              HB  73-DCCED LICENSING INVESTIGATIONS                                                                         
                                                                                                                                
3:22:21 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced that the  final order of business would be                                                               
HOUSE BILL NO.  73, "An Act relating  to investigations conducted                                                               
by   the  Department   of  Commerce,   Community,  and   Economic                                                               
Development."                                                                                                                   
                                                                                                                                
3:22:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CALVIN  SCHRAGE,  Alaska  State  Legislature,  as                                                               
prime sponsor,  stated that the  purpose of  HB 73 is  to provide                                                               
any  person  that  files  a  complaint  with  the  Department  of                                                               
Commerce,   Community,  and   Economic   Development  (DCCED)   a                                                               
notification  prior  to the  closure  of  the investigation  into                                                               
their  complaint.   This  would provide  the  complainant with  a                                                               
period of  ten days in  which to object  to the closure  of their                                                               
complaint.                                                                                                                      
                                                                                                                                
3:24:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX  asked if  it is  correct that  a complainant                                                               
has the opportunity  to provide input before a  final decision is                                                               
made.                                                                                                                           
                                                                                                                                
REPRESENTATIVE SCHRAGE  answered that  it is.   In response  to a                                                               
follow-up  question, he  answered that  a department  will accept                                                               
additional information  after a case  is closed, but the  goal of                                                               
the  proposed legislation  is  to  provide advanced  notification                                                               
before a  final decision  is rendered.   He  added that  the bill                                                               
would  not occur  any fiscal  notes due  to notification  already                                                               
being provided after a case is closed.                                                                                          
                                                                                                                                
3:26:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX asked if HB  73 would result in the complaint                                                               
process starting over.                                                                                                          
                                                                                                                                
REPRESENTATIVE SCHRAGE  answered that  the case would  not remain                                                               
perpetually open,  as there  would still be  a limited  amount of                                                               
time for new  information to be provided, and a  limit to any new                                                               
information  that could  exist.   He added  that it  is different                                                               
than a  court proceeding  in that both  sides do  not necessarily                                                               
see the evidence from the other side.                                                                                           
                                                                                                                                
3:30:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER asked  for clarification  as to  how much                                                               
the proposed  legislation could lengthen the  process and whether                                                               
it was necessary.                                                                                                               
                                                                                                                                
REPRESENTATIVE  SCHRAGE answered  that  the proposed  legislation                                                               
was  in  response  to  a   constituent's  story  about  filing  a                                                               
complaint  that the  constituent believed  to be  meritorious and                                                               
then not knowing  its status until the case was  closed.  He said                                                               
that HB 73  would provide a ten-day window  to provide additional                                                               
documentation, and that any  additional documentation given would                                                               
not  restart  those  then  days.   In  response  to  a  follow-up                                                               
question, he  stated that  many people  unfamiliar with  how such                                                               
investigations work may not provide  all available information up                                                               
front, but  only what they  feel is  enough to prove  their case.                                                               
He added  that if DCCED would  still have the ability  to close a                                                               
case  if  it  felt  that the  additional  documentation  did  not                                                               
substantially change the merits of the case.                                                                                    
                                                                                                                                
3:34:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX  asked  if  Sylvan Robb  could  explain  the                                                               
complaint process.                                                                                                              
                                                                                                                                
3:35:15 PM                                                                                                                    
                                                                                                                                
SYLVAN ROBB,  Director, Division  of Corporations,  Business, and                                                               
Professional  Licensing, Department  of Commerce,  Community, and                                                               
Economic Development, stated the first  step of the process for a                                                               
member of  the public  is to submit  their complaint  in writing.                                                               
If  the case  has merit,  the department  moves forward  with the                                                               
case and assigns  an investigative team.  She said  that the word                                                               
"investigation" is not used until  the department reaches a point                                                               
in which there  is substantial evidence to  support the complaint                                                               
due  to the  potential  consequences of  using  such language  in                                                               
investigations involving someone with a professional license.                                                                   
                                                                                                                                
3:38:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE  asked whether informing a  complaint of                                                               
the closure of their complaint is currently standard procedure.                                                                 
                                                                                                                                
MS.  ROBB answered  that  it is  the policy  of  the Division  of                                                               
Corporations,  Business, and  Professional  Licensing  to do  so.                                                               
She added that  if a case moves to the  investigation phase, then                                                               
the result of  the investigation becomes public  information.  In                                                               
response to  a follow-up question,  she said that the  reason for                                                               
not giving  more information to  a complainant is to  protect the                                                               
reputation  of a  licensee  in  cases of  claims  with no  merit,                                                               
although  she noted  that it  is worth  considering any  possible                                                               
ways  to explain  why  the  complaint was  closed  in more  broad                                                               
terms.                                                                                                                          
                                                                                                                                
REPRESENTATIVE  RUFFRIDGE asked  whether such  a change  could be                                                               
implemented internally  by the  division or  a change  in statute                                                               
would be necessary.                                                                                                             
                                                                                                                                
MS. ROBB answered  that the division would be able  to amend what                                                               
is sent to  a complainant internally as it is  already its policy                                                               
to inform the complainant.                                                                                                      
                                                                                                                                
3:43:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  asked  at what  stages  the  complainant                                                               
receives any feedback from the division.                                                                                        
MS.  ROBB answered  that during  the first  stage, a  complainant                                                               
reaches  out to  the division  and is  then asked  to fill  out a                                                               
complaint  packet  if  they  wish  to  move  forward  with  their                                                               
complaint.  In  response to a follow-up  question, she reiterated                                                               
that if the  division moves forward with a  case, the complainant                                                               
is  informed of  the result,  and if  the result  involves action                                                               
taken against a licensee, that becomes public information.                                                                      
                                                                                                                                
REPRESENTATIVE SADDLER asked if it  is correct that a complainant                                                               
is  not  considered to  be  a  party  to any  investigation  that                                                               
occurs.                                                                                                                         
                                                                                                                                
MS.  ROBB answered  that  it  is.   In  response  to a  follow-up                                                               
question, she said  that she is unsure  whether adding additional                                                               
notice  would have  a legal  effect  on a  complainant not  being                                                               
party to the investigation but does not believe it will.                                                                        
                                                                                                                                
[HB 73 was held over.]