Legislature(2023 - 2024)BELTZ 105 (TSBldg)

01/22/2024 01:30 PM Senate LABOR & COMMERCE

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Audio Topic
01:33:53 PM Start
01:34:41 PM SB182
02:08:22 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 182 EXTEND BIG GAME COMM SERVICES BOARD TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
**Streamed live on AKL.tv**
           SB 182-EXTEND BIG GAME COMM SERVICES BOARD                                                                       
                                                                                                                                
1:34:41 PM                                                                                                                    
CHAIR  BJORKMAN announced  the consideration  of SENATE  BILL NO.                                                               
182  "An Act  extending  the  termination date  of  the Big  Game                                                               
Commercial Services Board; and providing for an effective date."                                                                
                                                                                                                                
He invited  his staff member, Raymond  Matiashowski, to introduce                                                               
the bill.                                                                                                                       
                                                                                                                                
1:35:04 PM                                                                                                                    
SENATOR BISHOP joined the meeting.                                                                                              
                                                                                                                                
1:35:13 PM                                                                                                                    
RAYMOND MATIASHOWSKI, Staff, Senator Bjorkman, Alaska State                                                                     
Legislature, Juneau, Alaska, introduced SB 182, reading                                                                         
from the following statement:                                                                                                   
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     For the  record, my name is  Raymie Matiashowski, Staff                                                                    
     to Senator Bjorkman, and I  am here to present the bill                                                                    
     before  you, SB  182, an  act  to extend  the Big  Game                                                                    
     Commercial Services Board. The  purpose of this bill is                                                                    
     to  review  the  Legislative  Audit  of  the  Big  Game                                                                    
     Commercial Services Board, and  to give the Legislature                                                                    
     the opportunity to review the Board Actions.                                                                               
                                                                                                                                
     The Big Game Commercial  Services Board was created for                                                                    
     the purpose of licensing  and regulating the activities                                                                    
     of  providers  of  commercial   services  to  big  game                                                                    
     hunters  in  the  interest   of  the  State's  wildlife                                                                    
     resources.                                                                                                                 
                                                                                                                                
     The  audit   in  question  found  that   the  Board  is                                                                    
     operating in  the public's interest, however  there was                                                                    
     occasional  lack of  adequate  documentation for  board                                                                    
     licenses.  The   audit  also  questioned   whether  two                                                                    
     private   landholder  board   seats   continue  to   be                                                                    
     necessary for effective regulation.                                                                                        
                                                                                                                                
     Legislative Audit conducted  the audit, and recommended                                                                    
     extending the Board for six  years, however, the issues                                                                    
     brought up  in the  audit revolved around  staffing and                                                                    
     systemic issues,  which are  related to  the operations                                                                    
     of  CBPL,  not  necessarily  the  Big  Game  Commercial                                                                    
     Services Board. While  we appreciate the recommendation                                                                    
     of  the audit,  we  felt that  these  issues were  best                                                                    
     addressed   through  this   review   process  and   the                                                                    
     budgetary  process  rather  than shortening  the  board                                                                    
     extension  and  creating   more  work  for  Legislative                                                                    
     Budget  and Audit  to review  the Board  in six  rather                                                                    
     than eight years.                                                                                                          
                                                                                                                                
1:36:33 PM                                                                                                                    
MR. MATIASHOWSKI continued:                                                                                                     
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
       I have with me Legislative Auditor Kris Curtis, to                                                                       
     speak to the audit,                                                                                                        
                                                                                                                                
     Director   Sylvan    Robb   from   the    Division   of                                                                    
     Corporations, Business, and  Professional Licensing, to                                                                    
     speak to the points in  the audit relating to CBPL, and                                                                    
     how they are working to address those points.                                                                              
                                                                                                                                
       and Jason Bunch, Chair of the Big Game Commercial                                                                        
      Services Board to speak to the work of the board to                                                                       
     address the points put forth in the audit.                                                                                 
                                                                                                                                
1:37:32 PM                                                                                                                    
KRIS CURTIS, Legislative Auditor,  Division of Legislative Audit,                                                               
Legislative Affairs  Agency, Juneau, Alaska, explained  that this                                                               
is  a sunset  audit,  meant  to determine  whether  the board  is                                                               
serving the public's  interest and if it should  be extended. The                                                               
division found that  the board is serving  the public's interest,                                                               
conducting  meetings  effectively, supporting  statutory  changes                                                               
when  deemed necessary,  and actively  amending regulations.  The                                                               
division   also   discovered   that  board   licenses   are   not                                                               
consistently supported  by appropriate documentation and  the two                                                               
private  landholder  board  seats   were  either  vacant  or  had                                                               
extended absences during the audit period.                                                                                      
                                                                                                                                
1:38:24 PM                                                                                                                    
MS.  CURTIS  said  the  division recommends  that  the  board  be                                                               
extended six  years, two years  less than the  eight-year maximum                                                               
allowed according to statute. The  board has had some issues. Ms.                                                               
Curtis recommended in  2008 to extend the board by  four years if                                                               
they had a deficit of over  $1,000,000 and the board was extended                                                               
only  three years.  Her last  recommendation of  eight years  was                                                               
bumped  down by  the legislature  to a  five year  extension. The                                                               
only  issue  found in  the  course  of  the audit  was  licensure                                                               
documentation  which   falls  to   the  division  staff   but  is                                                               
ultimately over seen by the  board. She commented that the sunset                                                               
process is a legislative oversight function.                                                                                    
                                                                                                                                
1:40:19 PM                                                                                                                    
MS. CURTIS asserted two recommendations:  that the DCBPL director                                                               
improve  oversight procedures  to ensure  the required  licensure                                                               
documentation  is  obtained  and  reviewed, and  that  the  board                                                               
consider  whether  the two  private  landholder  board seats  are                                                               
necessary   for  effective   regulation.  One   of  the   private                                                               
landholder  board seats  was  vacant for  twelve  months and  had                                                               
unexcused  absences   for  seven  months.  The   other  seat  had                                                               
vacancies for 31 months.                                                                                                        
                                                                                                                                
1:41:45 PM                                                                                                                    
MS. CURTIS referred  to the bill packet, pointing out  that as of                                                               
January 2023  the board  had 1,438  active licenses.  By February                                                               
2023, the board  had climbed out of the deficit  hole and now had                                                               
a surplus of over $850,000.  The board then eliminated the annual                                                               
report  filing and  assistant guide  license fees,  effective for                                                               
the December 2023 licensing cycle.                                                                                              
                                                                                                                                
MS. CURTIS  provided a synopsis  of management's response  to the                                                               
audit. The commissioner of the  Department of Commerce, Community                                                               
and  Economic Development  agreed with  the first  recommendation                                                               
regarding  licensure  and   documentation.  Regarding  the  first                                                               
recommendation,  the  board  did  not believe  that  the  finding                                                               
acknowledged  improvements the  division has  made over  the last                                                               
three years.  Regarding the second recommendation,  the chair did                                                               
not believe that a change  in board composition was necessary; he                                                               
believes the  governor should  do a  better job  of communicating                                                               
the opportunities to serve on the board.                                                                                        
                                                                                                                                
1:43:44 PM                                                                                                                    
SENATOR DUNBAR commented that the  chair said there was currently                                                               
one private landholder  seat vacant, and one  filled with someone                                                               
who is engaged and productive;  it sounded like inconsistent data                                                               
regarding  seat absences.  He asked  how  the statute  regulation                                                               
defines  the  term  "private landowner"  and  whether  an  Alaska                                                               
Native Corporation representative hold a seat.                                                                                  
                                                                                                                                
1:44:24 PM                                                                                                                    
MS.  CURTIS  responded that,  while  the  chair could  provide  a                                                               
better   answer,  Native   corporations  are   included  in   the                                                               
definition.  She  asserted  that  the qualifying  group  for  the                                                               
private  landholder  designation is  a  small  pool, which  makes                                                               
securing the seat challenging.                                                                                                  
                                                                                                                                
1:44:55 PM                                                                                                                    
SENATOR   DUNBAR  asserted   that   there   must  be   additional                                                               
requirements in statute for the seat  because Alaska has a lot of                                                               
landholders.                                                                                                                    
                                                                                                                                
1:45:10 PM                                                                                                                    
MS. CURTIS  asserted that the  statute specifies a  large private                                                               
landholder.                                                                                                                     
                                                                                                                                
1:45:16 PM                                                                                                                    
SENATOR  DUNBAR opined  that reducing  the land  size requirement                                                               
would increase the pool size for the seat.                                                                                      
                                                                                                                                
1:45:24 PM                                                                                                                    
MS.  CURTIS replied  that  the board  did not  view  the lack  of                                                               
participation from those two seats as a problem for regulation.                                                                 
                                                                                                                                
1:46:00 PM                                                                                                                    
CHAIR BJORKMAN asked what the  Division of Corporations, Business                                                               
and  Professional Licensing  could  do to  improve management  of                                                               
licensure procedures,  filing of all required  documentation, and                                                               
ensuring review and retention of documents to support licensure.                                                                
                                                                                                                                
1:46:36 PM                                                                                                                    
MS.  CURTIS responded  that checklists,  supervisor review,  good                                                               
training, and good  written procedures are the  types of controls                                                               
in place to combat turnover and ensure effective operations.                                                                    
                                                                                                                                
1:47:05 PM                                                                                                                    
CHAIR  BJORKMAN   how  the   number  of   staff  assigned   to  a                                                               
professional board  is determined  and how  many staff  the board                                                               
has.                                                                                                                            
                                                                                                                                
1:47:20 PM                                                                                                                    
MS. CURTIS  answered that is  a good question for  the department                                                               
but that  typically staff might  have multiple  boards, depending                                                               
on how complex the profession is.                                                                                               
                                                                                                                                
1:48:00 PM                                                                                                                    
CHAIR BJORKMAN invited  Sylvan Robb to put herself  on the record                                                               
and begin her testimony.                                                                                                        
                                                                                                                                
1:48:13 PM                                                                                                                    
SYLVAN ROBB,  Director, Division  of Corporations,  Business, and                                                               
Professional   Licensing   (DCBPL),   Department   of   Commerce,                                                               
Community  and  Economic  Development  (DCCED),  Juneau,  Alaska,                                                               
reiterated  that the  department had  no issue  with the  finding                                                               
directed  to the  division.  A substantial  portion  of the  time                                                               
covered by  the audit was  during the COVID-19 pandemic  when the                                                               
division  struggled with  high vacancy  rates and  turnover. Were                                                               
the audit  to be  conducted thereafter,  better results  would be                                                               
found.  The staff  working on  the licensing  program were  hired                                                               
during a  time of crisis. The  board is now able  to provide more                                                               
robust  training.  In  the   absence  of  occupational  licensing                                                               
examiners,  supervisors  have been  stepping  up  to ensure  that                                                               
professionals  are  getting  licenses. Those  without  a  license                                                               
cannot work so the division is licensing as quickly as possible.                                                                
                                                                                                                                
1:50:01 PM                                                                                                                    
VICE-CHAIR BISHOP  brought up the board  chair's previous mention                                                               
of enhancing  communication regarding vacant positions.  He asked                                                               
whether any  progress had  been made in  this regard  and whether                                                               
discussions had  occurred with the Boards  and Commissions office                                                               
about improving  the methods of communicating  open positions and                                                               
advertising them effectively.                                                                                                   
                                                                                                                                
1:50:42 PM                                                                                                                    
MS.   ROBB   replied  that   the   department   is  in   frequent                                                               
communication  with Boards  and Commissions.  CBPL has  136 board                                                               
members when all seats are  filled and the Department of Congress                                                               
has  even  more,  so  the department  is  constantly  working  on                                                               
communication  to  ensure that  there  is  awareness and  insight                                                               
regarding  open  seats.  The department  is  working  with  board                                                               
members to ensure  good connections with those  in the respective                                                               
industries  and  to  drum  up   interest  in  applying  for  open                                                               
positions. She said good communication is an ongoing effort.                                                                    
                                                                                                                                
1:51:39 PM                                                                                                                    
CHAIR  BJORKMAN  asked  if  there were  people  who  applied  for                                                               
positions on the board who were not appointed.                                                                                  
                                                                                                                                
1:51:46 PM                                                                                                                    
MS. ROBB  deferred to  Boards and  Commissions in  the governor's                                                               
office.                                                                                                                         
                                                                                                                                
1:51:56 PM                                                                                                                    
CHAIR  BJORKMAN  asked  if  the  board  continues  to  build  its                                                               
positive cashflow.                                                                                                              
                                                                                                                                
1:52:16 PM                                                                                                                    
MS. ROBB  replied that  AS 08.01.065  requires that  the division                                                               
set  licensing fees  to be  approximately  equal to  the cost  of                                                               
running  the  program.  At  one   point  the  program  was  in  a                                                               
substantial  deficit. At  the time  of  the audit  the board  had                                                               
about $850,000. Professional  licenses are good for  two years so                                                               
there  is  ample fluctuation  from  year  to year.  Each  program                                                               
generates  the majority  of revenue  during renewal  years. Since                                                               
the  department  has   had  to  raise  fees   before,  they  were                                                               
conservative in  their estimate of  fee reductions, but  they did                                                               
reduce  fees  for certain  positions.  The  department will  take                                                               
stock after a year of that fee  position to see how the fee rates                                                               
are affecting the program.                                                                                                      
                                                                                                                                
1:54:09 PM                                                                                                                    
SENATOR GRAY-JACKSON asked to hear more about the deficit.                                                                      
                                                                                                                                
1:52:22 PM                                                                                                                    
MS. ROBB  replied that the deficit  was before her time,  but she                                                               
would  look  into   it  and  provide  that   information  to  the                                                               
committee.                                                                                                                      
                                                                                                                                
1:55:00 PM                                                                                                                    
JASON BUNCH, Chair, Board of  Game, Alaska Department of Fish and                                                               
Game (ADF&G),  Kodiak, Alaska, confirmed  that the  committee has                                                               
received his response to the audit  and said he was available for                                                               
questions.                                                                                                                      
                                                                                                                                
1:55:27 PM                                                                                                                    
SENATOR GRAY-JACKSON asked how long he has been on the board.                                                                   
                                                                                                                                
1:55:38 PM                                                                                                                    
MR. BUNCH answered almost six years.                                                                                            
                                                                                                                                
1:56:15 PM                                                                                                                    
SENATOR GRAY-JACKSON asked  if Mr. Bunch knew the  reason for the                                                               
deficit.                                                                                                                        
                                                                                                                                
1:56:30 PM                                                                                                                    
MR.  BUNCH answered  he  did  not know  but  speculated that  the                                                               
deficit occurred  when the board  sunset and oversight  was lost.                                                               
Today's decisions are discussed before action is taken.                                                                         
                                                                                                                                
1:57:33 PM                                                                                                                    
CHAIR BJORKMAN  asked if  the board has  taken action  to improve                                                               
the processes of filing paperwork.                                                                                              
                                                                                                                                
1:57:55 PM                                                                                                                    
MR.  BUNCH  said  Big Game  administrative  responsibilities  are                                                               
fairly  robust   and  administering  licenses  takes   a  lot  of                                                               
understanding.  The board  deals with  natural resources  and has                                                               
its hand in a lot of  different areas of the state. Consequently,                                                               
it requires  consistent administrative  staff who can  retain the                                                               
knowledge and experience required  to manage licensing. Retention                                                               
has been  difficult for the  board to achieve. He  suggested that                                                               
the   board  had   a   high  degree   of   turnover  because   of                                                               
administrative  burden and  because the  division was  more of  a                                                               
steppingstone rather than a final  destination for employees. The                                                               
board has looked at that carefully  and discussed it for the last                                                               
three years.  The board decided  to recommend that  the executive                                                               
administrator  position be  exclusively  designated  for the  Big                                                               
Game  Commercial  Services Board,  rather  than  shared with  the                                                               
Marine Pilot Board. Currently, the  board has around $800,000 and                                                               
only needs  $600,000 to be  self-sustaining. The board  held onto                                                               
licensee  money to  support a  full time  executive administrator                                                               
and  recommended that  the  position  be a  higher  paid job  for                                                               
consistent  leadership,   which  would  alleviate  some   of  the                                                               
findings of the audit.                                                                                                          
                                                                                                                                
2:01:24 PM                                                                                                                    
CHAIR BJORKMAN  asked how  long the  current examiner  has worked                                                               
with the board and the department.                                                                                              
                                                                                                                                
2:01:35 PM                                                                                                                    
MR. BUNCH  replied approximately  two years.  She added  that the                                                               
current  executive administrator  has worked  with them  for four                                                               
years, initially as the licensing  examiner before stepping up to                                                               
be the administrator.                                                                                                           
                                                                                                                                
2:02:28 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:04:04 PM                                                                                                                    
CHAIR  BJORKMAN   reconvened  the   meeting  and   opened  public                                                               
testimony on SB 182.                                                                                                            
                                                                                                                                
2:05:01 PM                                                                                                                    
SAM  ROHRER, President,  Alaska  Professional Hunter  Association                                                               
(AHA), Kodiak, Alaska, testified in  support of SB 182. He stated                                                               
that he is  the president of the AHA, which  strongly supports SB
182. He said  the Big Game Commercial Services  Board is critical                                                               
to the long-term  viability of the guide industry  in Alaska. The                                                               
board serves  the state's best  interests by  maintaining testing                                                               
standards and providing  oral testing for new  guides. It ensures                                                               
that  only   well-qualified  applicants  receive   hunting  guide                                                               
licenses.  Alaska continues  to have  the most  stringent hunting                                                               
guide  qualifications  in all  of  North  America thanks  to  the                                                               
board. Without the board, oral  testing would not be possible and                                                               
licensing  standards  would  suffer. The  guiding  profession  in                                                               
Alaska is  one of the  few professional licenses not  requiring a                                                               
formal  education. Instead,  licenses  are  acquired through  the                                                               
apprenticeship  process, making  the  license  more enticing  for                                                               
individuals  in rural  areas. The  Big  Game Commercial  Services                                                               
Board  provides  the  only  interface  between  the  Division  of                                                               
Occupational Licensing  and the  guiding profession.  Without the                                                               
board the profession  has no meaningful input  on the development                                                               
of regulations  that directly impact  hunting guides.  The public                                                               
also has a  vested interest in how guides  are regulated. Without                                                               
the board  the public  has very  little opportunity  to influence                                                               
regulations that control the guiding industry.                                                                                  
                                                                                                                                
2:07:53 PM                                                                                                                    
CHAIR BJORKMAN left public testimony on SB 182 open and set the                                                                 
bill aside.                                                                                                                     

Document Name Date/Time Subjects
SB182 ver A.pdf SL&C 1/22/2024 1:30:00 PM
SL&C 1/29/2024 1:30:00 PM
SB 182
SB182 Sponsor Statement Ver A 1.17.2023.pdf SFIN 4/9/2024 9:00:00 AM
SL&C 1/22/2024 1:30:00 PM
SL&C 1/29/2024 1:30:00 PM
SB 182
SB182 Supporting Documents-BGCSB Audit.pdf SFIN 4/9/2024 9:00:00 AM
SL&C 1/22/2024 1:30:00 PM
SL&C 1/29/2024 1:30:00 PM
SB 182
SB182 Fiscal Note-DCCED-CBPL-01.18.24.pdf SL&C 1/22/2024 1:30:00 PM
SL&C 1/29/2024 1:30:00 PM
SB 182