Legislature(2023 - 2024)BELTZ 105 (TSBldg)

01/31/2024 01:30 PM Senate LABOR & COMMERCE

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Audio Topic
02:34:51 PM Start
02:35:36 PM EO 127 Eliminating the Board of Massage Therapists
02:35:36 PM EO 129 Eliminating the Board of Barbers and Hairdressers
02:35:36 PM EO 130 Eliminating the Board of Certified Direct Entry Midwives
03:37:44 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ EO 127 ELIMINATING THE BOARD OF MASSAGE TELECONFERENCED
THERAPISTS
Heard & Held
-- Testimony <Invitation Only> --
+ EO 129 ELIMINATING THE BOARD OF BARBERS AND TELECONFERENCED
HAIRDRESSERS
Heard & Held
-- Testimony <Invitation Only> --
+ EO 130 ELIMINATING THE BOARD OF CERTIFIED TELECONFERENCED
DIRECT ENTRY MIDWIVES
Heard & Held
-- Testimony <Invitation Only> --
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                        January 31, 2024                                                                                        
                           2:34 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Jesse Bjorkman, Chair                                                                                                   
Senator Elvi Gray-Jackson                                                                                                       
Senator Kelly Merrick                                                                                                           
Senator Forrest Dunbar                                                                                                          
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Click Bishop, Vice Chair                                                                                                
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
EO 127 ELIMINATING THE BOARD OF MASSAGE THERAPISTS                                                                              
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
EO 129 ELIMINATING THE BOARD OF BARBERS AND HAIRDRESSERS                                                                        
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
EO 130 ELIMINATING THE BOARD OF CERTIFIED DIRECT ENTRY MIDWIVES                                                                 
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SARA CHAMBERS, Boards and Regulations Advisor                                                                                   
Department of Commerce, Community and                                                                                           
Economic Development (DCCED)                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided an overview for EO 127, EO 129, and                                                              
EO 130.                                                                                                                         
                                                                                                                                
PARKER PATTERSON, Assistant Attorney General                                                                                    
Civil Division                                                                                                                  
Department of Law                                                                                                               
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Answered questions on executive order                                                                     
procedures.                                                                                                                     
                                                                                                                                
KRIS CURTIS, Legislative Auditor                                                                                                
Alaska Division of Legislative Audit                                                                                            
Legislative Affairs Agency                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified by invitation on EO 127, EO 129,                                                                
and EO 130.                                                                                                                     
                                                                                                                                
ANNETTA ATWELL, Chair                                                                                                           
Board of Massage Therapists                                                                                                     
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified by invitation on EO 127.                                                                        
                                                                                                                                
MICHELLE MCMULLIN, Chair                                                                                                        
Board of Barbers and Hairdressers                                                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified by invitation on EO 129.                                                                        
                                                                                                                                
BETHEL BELISLE, Chair                                                                                                           
Board of Certified Direct-Entry Midwives                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified by invitation on EO 130.                                                                        
                                                                                                                                
ONICA SPROKKREEF, President                                                                                                     
Midwives Association of Alaska                                                                                                  
Kelowna, British Columbia, Canada                                                                                               
POSITION STATEMENT: Testified by invitation on EO 130.                                                                        
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
2:34:51 PM                                                                                                                    
CHAIR  JESSE  BJORKMAN  called  the  Senate  Labor  and  Commerce                                                             
Standing Committee meeting  to order at 2:34 p.m.  Present at the                                                               
call to  order were Senators  Gray-Jackson, Dunbar,  Merrick, and                                                               
Chair Bjorkman.                                                                                                                 
                                                                                                                                
^EO 127 ELIMINATING THE BOARD OF MASSAGE THERAPISTS                                                                             
       EO 127 ELIMINATING THE BOARD OF MASSAGE THERAPISTS                                                                   
2:35:36 PM                                                                                                                    
^EO 129 ELIMINATING THE BOARD OF BARBERS AND HAIRDRESSERS                                                                       
    EO 129 ELIMINATING THE BOARD OF BARBERS AND HAIRDRESSERS                                                                
2:35:36 PM                                                                                                                    
                                                                                                                              
 ^EO 130 ELIMINATING THE BOARD OF CERTIFIED DIRECT ENTRY MIDWIVES                                                               
EO 130 ELIMINATING THE BOARD OF CERTIFIED DIRECT ENTRY MIDWIVES                                                             
2:35:36 PM                                                                                                                    
CHAIR  BJORKMAN announced  the consideration  of Executive  Order                                                               
(EO)  127 Eliminating  the Board  of Massage  Therapists, EO  129                                                               
Eliminating the  Board of  Barbers and  Hairdressers, and  EO 130                                                               
Eliminating the Board of Certified Direct Entry Midwives.                                                                       
                                                                                                                                
2:36:25 PM                                                                                                                    
SARA  CHAMBERS, Boards  and  Regulations  Advisor, Department  of                                                               
Commerce,  Community and  Economic  Development (DCCED),  Juneau,                                                               
Alaska, provided an overview for EO  127, EO 129, and EO 130. She                                                               
paraphrased the following statement:                                                                                            
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     The three  executive orders  being heard  today propose                                                                  
     to shift  regulatory decision-making from  an appointed                                                                  
     board to management within  the Department of Commerce,                                                                  
     Community, and  Economic Development. As you  know, the                                                                  
     governor  has  an  ongoing interest  in  improving  the                                                                    
     efficiency  of  state  programs,  and  these  executive                                                                    
     orders present the potential to further that goal.                                                                         
     Today,  I'd like  to address  what the  three executive                                                                    
     orders  would  accomplish  and   what  they  would  not                                                                    
     change, as  well as  alleviate a  few concerns  we have                                                                    
     heard from the public since their introduction.                                                                            
                                                                                                                                
     What the Executive Orders Will Do                                                                                        
     First  and  foremost,  these proposals  will  eliminate                                                                    
     each quasi-judicial  board overseeing  their respective                                                                    
     programsthe   Board of  Barbers  and Hairdressers,  the                                                                    
     Board  of  Certified  Direct-Entry  Midwives,  and  the                                                                    
     Board  of Massage  Therapistsand  move  their decision-                                                                    
     making authority  to the department. Under  the current                                                                    
     delegation  of the  commissioner, that  authority would                                                                    
     then  rest  with  the  Director   of  the  Division  of                                                                    
     Corporations, Business and Professional Licensing.                                                                         
                                                                                                                                
     This  proposed  change  reflects  how  24  professional                                                                    
     licensing  programs within  the division  are currently                                                                    
     managed, including many health care programs.                                                                              
                                                                                                                                
     With efficiency  as the governor's motive,  this change                                                                    
     would  reduce  time   frames  for  license  application                                                                    
     review, ensure  swift action when challenges  to public                                                                    
     safety arise, and reduce wait  times in adopting needed                                                                    
     regulations.                                                                                                               
                                                                                                                                
2:38:06 PM                                                                                                                    
MS. CHAMBERS continued her overview of EO 127, EO 129, and EO                                                                   
130:                                                                                                                            
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     The executive orders are not  condemnations of the good                                                                    
     work our  board members perform; they  reflect concerns                                                                    
     about how well the  existing structures are serving the                                                                    
     state and opportunities for improvement.                                                                                   
                                                                                                                                
     The  structure  of  the   board  as  the  decisionmaker                                                                    
     invites inherent  delays. It's  difficult to  convene a                                                                    
     group  of  busy  volunteers, including  managing  last-                                                                    
     minute  schedule changes  that could  derail a  meeting                                                                    
     and  accommodating additional  built-in delays  to meet                                                                    
     public  notice  requirements.  Board business  may  get                                                                    
     pushed weeks into  the future if a quorum  of the board                                                                    
     is unable  to meet, unnecessarily drawing  out the wait                                                                    
     to   complete  board   business.   We  understand   how                                                                    
     difficult  it is  for board  members  to cancel  client                                                                    
     appointments   or   request   time   off   as   working                                                                    
     professionals;  however,   these  conflicts   impact  a                                                                    
     board's  ability to  function, which  cascades down  to                                                                    
     impact people  attempting to become  licensed, existing                                                                    
     licensees awaiting board answers  to questions, as well                                                                    
     as negative effects on public consumers.                                                                                   
                                                                                                                                
     Currently,  the wait  time for  reviewing and  adopting                                                                    
     regulations is  more than doubled  when a board  is the                                                                    
     driver rather  than the  department. Looking  at recent                                                                    
     history, a  simple regulations  change by  the division                                                                    
     takes about  four months,  versus a  year when  a board                                                                    
     has  requested  a  similar  change.  This  impacts  the                                                                    
     ability of qualified practitioners  to enter the market                                                                    
     and   suspends   policy  updates   impacting   licensed                                                                    
     practice.                                                                                                                  
                                                                                                                                
     Similarly,  license applications  may wait  for several                                                                    
     weeks  for members  to review,  only to  be tabled  for                                                                    
     consideration  at a  meeting  that  could be  scheduled                                                                    
     several  weeks into  the future.  This does  not happen                                                                    
     with     department-managed     licensing     programs.                                                                    
     Additionally, a staffing  restructure initiated in 2022                                                                    
     and affirmed  in the FY25  budget adopted by  the state                                                                    
     legislature  provides  deeper programmatic  support  to                                                                    
     all  licensing programssomething   that  did not  exist                                                                    
     before and which previously  contributed to turnover in                                                                    
     examiner positions.                                                                                                        
                                                                                                                                
2:40:20 PM                                                                                                                    
MS. CHAMBERS continued her overview of EO 127, EO 129, and EO                                                                   
130:                                                                                                                            
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     The   same   is    true   for   disciplinary   matters:                                                                    
     Investigations  requiring  a  board member  review  can                                                                    
     often  take months,  culminating in  another protracted                                                                    
     process of discussion and  final decision-making by the                                                                    
     board. Shifting  this responsibility to  the department                                                                    
     will  allow investigators  to  seek  input on  practice                                                                    
     matters from  a qualified practitioner only  when scope                                                                    
     of  practice is  in question.  Potential violations  of                                                                    
     statutes or  regulations that  do not  involve practice                                                                    
     matters can be  managed by a staff  investigator who is                                                                    
     familiar  with the  program, with  a recommendation  to                                                                    
     the director for  final action. Investigative timelines                                                                    
     mandated by  division leadership  in recent  years have                                                                    
     continued   to   reduce    internal   case   management                                                                    
     turnaround times.                                                                                                          
                                                                                                                                
     Regulation without  a quasi-judicial board is  a common                                                                    
     model  across  the United  States:  More  than half  of                                                                    
     Alaska's professional licensing  programs are currently                                                                    
     successfully  managed this  way. When  you look  across                                                                    
     the US  and its territories,  there is no  one dominant                                                                    
     model of  regulation for these professions.  Only about                                                                    
     half of the professions under  the Board of Barbers and                                                                    
     Hairdressers are managed by a  board in other states or                                                                    
     territories.  About   two-thirds  of   massage  therapy                                                                    
     programs  are regulated  by boards.  And only  9 of  34                                                                    
     states  that   regulate  direct-entry   midwifery  have                                                                    
     industry-led boards.                                                                                                       
                                                                                                                                
     Shifting  away   from  a  quasi-judicial   board  opens                                                                    
     opportunities  for  the   department  to  hear  regular                                                                    
     feedback  directly  from  licensees,  the  public,  and                                                                    
     other  stakeholders.  The  department is  committed  to                                                                    
     enhancing    input   from    stakeholders,   such    as                                                                    
     establishing advisory committees,  opening pathways for                                                                    
     electronic communication  on proposals for  change, and                                                                    
     holding  forums and  town hall  meetings to  seek ideas                                                                    
     and feedback  on the  regulation of  these professions.                                                                    
     And,  state law  will still  require the  department to                                                                    
     seek and consider public input  on regulations the same                                                                    
     way a board is required  to do. The department strongly                                                                    
     believes  in  the  need for  a  solid  and  transparent                                                                    
     bridge  between licensees  and staff  if the  executive                                                                    
     orders become effective, ensuring  that people who have                                                                    
     been  used to  a board  structure continue  to have  an                                                                    
     open  line of  communication on  all matters  affecting                                                                    
     their licenses and their practice.                                                                                         
                                                                                                                                
2:42:46 PM                                                                                                                    
MS. CHAMBERS continued her overview of EO 127, EO 129, and EO                                                                   
130:                                                                                                                            
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Speaking  of  which,  there  have  been  many  concerns                                                                    
     raised by stakeholders since  the executive orders were                                                                    
     announced, so  I'd like to assuage  apprehensions about                                                                    
     what these orders will not do.                                                                                           
                                                                                                                                
     The changes made  in the executive orders  do not alter                                                                    
     the  licensure or  certification standards  or practice                                                                    
     of any of the  affected professions. The Administration                                                                    
     supports   the  practice   of  these   professions  and                                                                    
     reinforces that the  proposal of these orders  is in no                                                                    
     way  a first  step toward  deregulation. Any  change to                                                                    
     state  law affecting  any  of  these professions  would                                                                    
     require action by the legislature,  as it does now. Any                                                                    
     regulations  change  would  require the  department  to                                                                    
     seek  and consider  public input,  as the  law mandates                                                                    
     and as the board does now.                                                                                                 
                                                                                                                                
     If a situation  arose and it did not  have the practice                                                                    
     expertise required  to make an educated  decision about                                                                    
     an   applicant,  investigation,   or  regulation,   the                                                                    
     department would  continue to rely upon  the advice and                                                                    
     wisdom of  seasoned practitionersas   it does  now with                                                                    
     all  programs.   We  have   also  confirmed   with  the                                                                    
     Department of  Health that licensees who  are currently                                                                    
     qualified for  reimbursement by insurance  and Medicaid                                                                    
     would continue to be covered, as they are now.                                                                             
                                                                                                                                
     The   time  currently   spent  by   staff  to   support                                                                    
     management of  a board will be  reinvested in improving                                                                    
     licensing  turnaround  times and  increasing  expertise                                                                    
     about the profession if there  are any gaps as a result                                                                    
     of   the  reorganization.   Division  staff   currently                                                                    
     receive  training and  education  on  matters that  are                                                                    
     important  to  the  program,  and  that  will  only  be                                                                    
     enhanced going forward. A great  example of this is the                                                                    
     training  our staff  currently receives  on identifying                                                                    
     potential  human  trafficking   red  flags  in  license                                                                    
     applications  and  enforcement  issues.  Board  members                                                                    
     currently share  in this review,  but they are  not the                                                                    
     only  trained eyes  on these  issues  when they  arise,                                                                    
     which is  infrequent. The training that  division staff                                                                    
     receive  on human  trafficking would  only be  enhanced                                                                    
     when the executive orders go into effect.                                                                                  
                                                                                                                                
2:45:02 PM                                                                                                                    
MS. CHAMBERS continued her overview of EO 127, EO 129, and EO                                                                   
130:                                                                                                                            
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     The previous  points apply to  all three of  the boards                                                                    
     proposed  to be  eliminated  in  the executive  orders.                                                                    
     There are  a few  specific concerns, however,  that are                                                                    
     relevant to two of the affected boards.                                                                                    
                                                                                                                                
     First,  the  Board  of Barbers  and  Hairdressers  has,                                                                    
     multiple  times, over  more than  a decade,  identified                                                                    
     needed  changes in  statute  or  regulation that  would                                                                    
     either  improve policies  relating  to the  professions                                                                    
     they govern  or clarify  persistent questions  that are                                                                    
     creating  confusion  in   the  industry.  With  limited                                                                    
     exception,  they  have failed  to  act  on these  major                                                                    
     policymaking  needs   from  industry.  The   board  has                                                                    
     frequently needed to reschedule  or cancel its publicly                                                                    
     noticed meetings due  to a lack of  quorum. On multiple                                                                    
     occasions,  more than  a dozen  members  of the  public                                                                    
     have gathered to  engage with the board,  and the board                                                                    
     has not shown  up. Without the requirement  of a board,                                                                    
     the department  could have  moved forward  in reviewing                                                                    
     these matters  and taken  appropriate steps  to address                                                                    
     industry concerns.  The board has, over  several years,                                                                    
     and  across multiple  rotations of  members, failed  to                                                                    
     perform the  work delegated to  it by  the legislature.                                                                    
     Not  only  is  this   persistently  not  responsive  or                                                                    
     responsible to  the needs of  industry and  the public,                                                                    
     but  it is  a drain  of staff  time and  resources that                                                                    
     could  be  spent  more  productively,  particularly  on                                                                    
     getting people to work in Alaska.                                                                                          
                                                                                                                                
2:46:35 PM                                                                                                                    
MS. CHAMBERS continued her overview of EO 127, EO 129, and EO                                                                   
130:                                                                                                                            
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Moving    quasi-judicial    decision-making   to    the                                                                    
     department  will  also  protect the  integrity  of  the                                                                    
     process. Within  the last year, the  Board of Certified                                                                    
     Direct-Entry  Midwives has  not  been  able to  address                                                                    
     certain application and  investigation issues because a                                                                    
     majority  of  board members  had  a  legal conflict  of                                                                    
     interest  with the  subject--either  because the  board                                                                    
     member was  their employer or had  internal information                                                                    
     about  the case.  The board  was required  to remand  a                                                                    
     matter  to an  Administrative Law  Judge to  settle the                                                                    
     matter for them, resulting in  the case taking nearly a                                                                    
     year and  costing more than  $7,000which  will  be paid                                                                    
     by  licensees.  This  situation  is  no  fault  of  the                                                                    
     individual  board  members; it  is  the  result of  the                                                                    
     structure  of  a  board  of  market  participants  that                                                                    
     oversees  a  very  small  number  of  their  peers.  By                                                                    
     governing  a  pool  of only  54  licensees  and  permit                                                                    
     holders,  it is  inherently difficult  not to  run into                                                                    
     conflicts of  interest in application  and disciplinary                                                                    
     matters.  Conflicts requiring  the board  to shift  its                                                                    
     responsibilities  to   the  Office   of  Administrative                                                                    
     Hearings will  only create more expenses  for a program                                                                    
     that costs licensees approximately  $3,000 to enter the                                                                    
     profession  as a  fully  certified  midwifea  fee  that                                                                    
     must be paid again  upon renewal of certification every                                                                    
     other year.                                                                                                                
                                                                                                                                
2:48:00 PM                                                                                                                    
MS. CHAMBERS continued her overview of EO 127, EO 129, and EO                                                                   
130:                                                                                                                            
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Also specific  to this  board is  the inability  of the                                                                    
     Administration to  fill the  physician seat,  which has                                                                    
     been  vacant  for  more  than  two  years.  A  lack  of                                                                    
     qualified   applicants   has    made   this   extremely                                                                    
     difficult. This  and other  concerns have  been brought                                                                    
     to the  legislature multiple times in  the last decade;                                                                    
     one  of   the  last  four  recent   legislative  audits                                                                    
     recommended   the  legislature   look  at   alternative                                                                    
     methods of regulating this profession.                                                                                     
                                                                                                                                
     Again, this is  not a critique of  the individual board                                                                    
     members   or   of   the  profession   of   direct-entry                                                                    
     midwifery, which  the Administration supports. It  is a                                                                    
     flaw  in the  statutory  structure  of this  particular                                                                    
     board.  The   Administration  wishes  to   express  our                                                                    
     respect for the  professional expertise and willingness                                                                    
     to serve  offered by all  board members and  our desire                                                                    
     to  gain  that  benefit   going  forward  through  more                                                                    
     efficient and appropriate means.                                                                                           
                                                                                                                                
     To  close,  the purpose  and  expected  outcome of  the                                                                    
     executive   orders  are   to  improve   the  regulatory                                                                    
     efficiency   of   the  affected   professions   without                                                                    
     sacrificing public engagement or safety.                                                                                   
                                                                                                                                
2:49:26 PM                                                                                                                    
SENATOR  DUNBAR  noted that  this  is  the first  time  executive                                                               
orders  (EO) have  been heard  in the  Senate Labor  and Commerce                                                               
Standing   Committee   and   inquired  about   the   process   of                                                               
disapproving an EO.                                                                                                             
                                                                                                                                
2:50:10 PM                                                                                                                    
MS.  CHAMBERS  replied  that an  Assistant  Attorney  General  is                                                               
online to answer this question.                                                                                                 
                                                                                                                                
2:50:26 PM                                                                                                                    
PARKER  PATTERSON, Assistant  Attorney  General, Civil  Division,                                                               
Department  of   Law,  Juneau,  Alaska,  answered   questions  on                                                               
executive  order  procedures.  He asked  for  clarification  that                                                               
Senator Dunbar  was referring to  the procedure  for disapproving                                                               
an EO.                                                                                                                          
                                                                                                                                
2:50:59 PM                                                                                                                    
SENATOR DUNBAR replied yes. He  acknowledged that the legislature                                                               
has  the power  to disapprove  EOs and  requested details  on the                                                               
disapproval process.                                                                                                            
                                                                                                                                
2:51:35 PM                                                                                                                    
MR. PATTERSON answered that with  regard to committee actions, he                                                               
would defer to  Legislative Legal Services. He  explained that in                                                               
order to disapprove  an EO, the legislature needs  to introduce a                                                               
special  concurrent  resolution within  60  days  of the  regular                                                               
session. This must  be approved by a majority  of the Legislature                                                               
during a joint  session. He added that the EO  becomes law unless                                                               
action is taken by the legislature.                                                                                             
                                                                                                                                
2:52:37 PM                                                                                                                    
SENATOR  DUNBAR pointed  out that  EOs are  before the  committee                                                               
without   a   corresponding    special   concurrent   resolution;                                                               
therefore, no action  can be taken. He asked if  the intention is                                                               
to move the EOs out of committee without recommendations.                                                                       
                                                                                                                                
2:53:06 PM                                                                                                                    
CHAIR  BJORKMAN explained  that when  hearings are  complete, the                                                               
committee will  produce a report with  recommendations. Following                                                               
this, any  legislator can draft  a special  concurrent resolution                                                               
to veto the EO.                                                                                                                 
                                                                                                                                
2:53:57 PM                                                                                                                    
SENATOR  DUNBAR  asked if  members  of  impacted industries  were                                                               
questioned regarding the elimination of the boards in question.                                                                 
                                                                                                                                
2:54:28 PM                                                                                                                    
MS.  CHAMBERS answered  no.  She  explained that  the  EOs are  a                                                               
launching point for these discussions.                                                                                          
                                                                                                                                
2:54:51 PM                                                                                                                    
CHAIR BJORKMAN asked Ms. Chambers  to elaborate on her experience                                                               
with DCCED and her work with the various boards.                                                                                
                                                                                                                                
2:55:11 PM                                                                                                                    
MS. CHAMBERS  answered that  she joined in  2011. Over  11 years,                                                               
she  served  as  Deputy  and  later  Division  Director  for  the                                                               
Division of  Corporations, Business, and  Professional Licensing.                                                               
She explained her  current position was created in  2023; in this                                                               
position, she  works with close  to 40  Boards to help  them work                                                               
more effectively.                                                                                                               
                                                                                                                                
2:55:44 PM                                                                                                                    
CHAIR  BJORKMAN   inquired  about  the   complaint  investigation                                                               
process and asked  if the members of the boards  in question help                                                               
handle these complaints.                                                                                                        
                                                                                                                                
2:55:55 PM                                                                                                                    
MS. CHAMBERS  replied that the investigative  process is directed                                                               
by  the   Division.  She  explained   that  the   Division  hires                                                               
investigators who are certified  through a rigorous process. Once                                                               
the  investigator  has  gathered   information  and  worked  with                                                               
parties to present  a case, one or more board  members review the                                                               
case and make  a recommendation to their peers on  the board. The                                                               
final disciplinary decision is made by the board.                                                                               
                                                                                                                                
2:56:57 PM                                                                                                                    
CHAIR BJORKMAN asked  if costs or other  liabilities are incurred                                                               
when  board  members  are  not  available  to  assist  with  this                                                               
process.                                                                                                                        
                                                                                                                                
2:57:12 PM                                                                                                                    
MS.  CHAMBERS  answered  board members  who  have  the  necessary                                                               
specialized expertise  are typically  available; however,  when a                                                               
board member with  the necessary expertise is  not available, the                                                               
Division  contracts   with  expert   witnesses.  She   said  that                                                               
currently,  board members  are involved  in every  investigation;                                                               
however, she  opined that there is  no need for board  members to                                                               
review  investigations   that  are  not  practice   related.  She                                                               
explained  that the  EO reduces  the  need for  board members  by                                                               
allowing non-practice  related investigations  to be  reviewed by                                                               
staff. She stated that costs are expected to remain the same.                                                                   
                                                                                                                                
2:59:12 PM                                                                                                                    
CHAIR BJORKMAN said that all  three boards have expressed concern                                                               
that, should  these boards be  eliminated, industry  members will                                                               
no longer be involved  in crafting industry-specific regulations,                                                               
expectations,  and standards.  He asked  if CVPL  has experts  in                                                               
these fields who can help craft regulations and standards.                                                                      
                                                                                                                                
2:59:49 PM                                                                                                                    
MS.  CHAMBERS replied  that currently,  the ideas  come from  the                                                               
boards and  the regulations  are crafted  by division  staff. She                                                               
reiterated that the Department is  committed to seeking out - and                                                               
listening  to   -  industry  input.   She  explained   that  when                                                               
industries   without  boards   have  outdated   regulations,  the                                                               
department  hears this  from the  industry  and is  able to  move                                                               
forward with the necessary changes in a more streamlined way.                                                                   
                                                                                                                                
3:01:01 PM                                                                                                                    
SENATOR GRAY-JACKSON  expressed concern about the  cost and asked                                                               
if the  department would need to  hire more employees to  take on                                                               
the workload once the boards are dissolved.                                                                                     
                                                                                                                                
3:01:24 PM                                                                                                                    
MS. CHAMBERS  replied that the  department does not  anticipate a                                                               
significant change in costs; however,  she acknowledged that this                                                               
may change depending on legislative  changes and industry shifts.                                                               
She  explained  that  in  2022,  division  staffing  underwent  a                                                               
significant   restructuring   that   allowed  staff   to   better                                                               
understand industry concerns and trends  - and to synthesize what                                                               
they hear from board members  and licensees. She stated that this                                                               
restructuring  provides   greater  confidence  in   the  division                                                               
staff's  ability to  successfully move  forward with  the changes                                                               
that  will  result  from  the  dissolution  of  the  boards.  She                                                               
reiterated that  there is  no intention  of cutting  out industry                                                               
input  and   emphasized  the  value  of   listening  to  industry                                                               
concerns. She stated  that fiscal notes are not a  part of the EO                                                               
process.                                                                                                                        
                                                                                                                                
3:03:13 PM                                                                                                                    
SENATOR GRAY-JACKSON  asked what  the budget is  for each  of the                                                               
boards.                                                                                                                         
                                                                                                                                
3:03:31 PM                                                                                                                    
MS.  CHAMBERS replied  that  the boards  do  not have  individual                                                               
budgets  as the  division sets  its  own budget  at the  division                                                               
component  level. She  stated  that  she would  get  back to  the                                                               
committee with the historical costs for the boards.                                                                             
                                                                                                                                
3:04:23 PM                                                                                                                    
KRIS CURTIS, Legislative Auditor,  Alaska Division of Legislative                                                               
Audit, Legislative  Affairs Agency, Juneau, Alaska,  testified by                                                               
invitation on  EO 127, EO 129,  and EO 130. She  paraphrased from                                                               
the following statement:                                                                                                        
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     The   executive  orders   you  are   considering  today                                                                    
     eliminate three  occupational boards which  are subject                                                                    
     to  legislative oversight  through  the sunset  process                                                                    
     outlined  in statute.  The sunset  process includes  an                                                                    
     audit  prior  to  reauthorization.  I  have  been  with                                                                    
     Legislative  Audit  over  30 years  and  been  directly                                                                    
     involved with the  sunset audits of the  boards you are                                                                    
     considering today.                                                                                                         
                                                                                                                                
     As  I understand  it, you  are  considering whether  to                                                                    
     object   to  the   governors   executive  orders   that                                                                    
     eliminate three occupational boards  and move the board                                                                    
     responsibilities to DCBPL  staff. Before discussing the                                                                    
     specific Executive Orders, I want  to make sure you all                                                                    
     know  that  occupational  boards are  not  funded  with                                                                    
     general funds.  Oc boards are funded  via license fees.                                                                    
     Statutes require  fees be  set at  a level  that covers                                                                    
     the  cost  of  regulating  the  profession.  Therefore,                                                                    
     eliminating the  boards will not results  in savings to                                                                    
     the state's general fund.                                                                                                  
                                                                                                                                
     And the other  important point I want to  make clear is                                                                    
     that any increase in regulatory  costs that result from                                                                    
     these executive orders will be born by licensees.                                                                          
                                                                                                                                
     When  considering  eliminating   the  three  boards,  I                                                                    
     encourage you to consider the  impact on the quality of                                                                    
     the regulatory  process, the  impact on  public safety,                                                                    
     and the impact on license fees.                                                                                            
                                                                                                                                
3:05:43 PM                                                                                                                    
MS. CURTIS continued her testimony on EO 127, EO 129, and EO                                                                    
130:                                                                                                                            
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Timeliness and quality of regulatory projects                                                                          
                                                                                                                                
     First,  the impact  on the  regulatory process.  As you                                                                    
     all   know,  occupational   boards  are   staffed  with                                                                    
     volunteers.  Licensees  that  serve  as  board  members                                                                    
     provide  technical expertise  that is  needed to  craft                                                                    
     regulations - and that expert  assistance comes free of                                                                    
     charge.  Moving  the  responsibility for  creating  and                                                                    
     amending regulations  to DCBPL staff will  make it less                                                                    
     likely  that  regulations  will be  changed  as  needed                                                                    
     because  DCBPL is  experiencing significant  challenges                                                                    
     with  turnover  and   retention.  Further,  moving  the                                                                    
     regulatory  responsibility  to   DCBPL  makes  it  more                                                                    
     likely  that  technical  expertise   will  need  to  be                                                                    
     procured  which  is  a  cost that  would  be  borne  by                                                                    
     licensees through increased fees.                                                                                          
                                                                                                                                
3:07:17 PM                                                                                                                    
MS. CURTIS continued her testimony on EO 127, EO 129, and EO                                                                    
130:                                                                                                                            
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Slowing down  the investigative process  and increasing                                                                
     investigative costs                                                                                                    
                                                                                                                                
     Next, is  the impact  on the investigative  process. As                                                                    
     needed,  board  members  are  asked  to  help  evaluate                                                                    
     complaints/evidence    and    provide    guidance    to                                                                    
     investigators.  Again, these  services are  provided at                                                                    
     no  cost.  Without  the assistance  of  board  members,                                                                    
     expert assistance  would need  to be procured  by DCBPL                                                                    
     which is  a cost  that will be  borne by  licensees. In                                                                    
     addition  to  increasing  costs and,  in  turn  license                                                                    
     fees,  I   expect  the  investigative  process   to  be                                                                    
     significantly  slower  without   the  availability  and                                                                    
     assistance of  board members  which increases  the risk                                                                    
     to public safety.                                                                                                          
                                                                                                                                
3:08:25 PM                                                                                                                    
MS.  CURTIS stated  that the  audit  found a  concerning lack  of                                                               
performance at  DCBPL, specifically related to  the investigatory                                                               
process. She  noted that the  details of these are  not typically                                                               
disclosed in  an audit  report, as  the investigations  are often                                                               
ongoing.  However, with  the boards  in  question, the  oversight                                                               
process has  been very important  to public safety over  the last                                                               
several  years. She  continued to  paraphrase from  the following                                                               
statement:                                                                                                                      
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     DCBPL,  like the  rest of  state government,  struggles                                                                    
     with  recruitment  and  retention.  I  caution  against                                                                    
     shifting  the  boards'  responsibilities to  an  agency                                                                    
     that, as  audits have  shown, should  not take  on more                                                                    
     responsibilities.  Our sunset  audits have  highlighted                                                                    
     poor     DCBPL    performance     including    untimely                                                                    
     investigations,   lack  of   appropriate  response   to                                                                    
     investigations,  not  completing  continuing  education                                                                    
     audits, and not processing  licenses in accordance with                                                                    
     state law.                                                                                                                 
                                                                                                                                
     My  final comment  for your  consideration is  that the                                                                    
     legislative  sunset  process provides  and  opportunity                                                                    
     for  legislators  to consider  the  degree  to which  a                                                                    
     specific  board  is   serving  the  public's  interest,                                                                    
     including DCBPL's  support to a board.  These executive                                                                    
     orders remove that oversight process.                                                                                      
                                                                                                                                
3:09:55 PM                                                                                                                    
MS.  CURTIS stated  that the  Board of  Direct-Entry Midwives  is                                                               
subject  to sunset  audit  this  year and  pointed  out that  the                                                               
previous  extension   was  limited   to  two  years   because  of                                                               
investigation  concerns.  She  highlighted  that  the  Governor's                                                               
office of  Boards and Commissions  is responsible  for appointing                                                               
board members.  She noted  that, in  some cases,  board positions                                                               
have  not been  filled in  a  timely manner,  leaving members  in                                                               
positions  long  after  they  should   have  been  replaced.  She                                                               
questioned why  boards and commissions  was not taking  action to                                                               
replace board members who consistently missed meetings.                                                                         
                                                                                                                                
3:10:59 PM                                                                                                                    
MS. CURTIS  commented that the  legislative sunset  audit process                                                               
provides  an opportunity  for legislators  to consider  whether a                                                               
board  is serving  the public's  interest. She  pointed out  that                                                               
this includes  whether DCBPL is  offering appropriate  support to                                                               
the  board. She  stated that  the  audits have  been critical  of                                                               
DCBPL's performance over the past 7  years and added that the EOs                                                               
take away this legislative oversight process.                                                                                   
                                                                                                                                
3:11:36 PM                                                                                                                    
SENATOR GRAY-JACKSON commented that  Ms. Curtis's report answered                                                               
her questions and thanked her for her presentation.                                                                             
                                                                                                                                
3:11:45 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
3:13:05 PM                                                                                                                    
CHAIR BJORKMAN reconvened the meeting.                                                                                          
                                                                                                                                
3:14:02 PM                                                                                                                    
CHAIR BJORKMAN  announced invited  testimony on  EO 127,  EO 129,                                                               
and EO 130.                                                                                                                     
                                                                                                                                
3:14:35 PM                                                                                                                    
ANNETTA ATWELL,  Chair, Board  of Massage  Therapists, Fairbanks,                                                               
Alaska, testified  by invitation on  EO 127. She stated  that the                                                               
current  Board of  Massage Therapists  has unanimously  agreed to                                                               
seek  the legislature's  assistance  in overturning  EO 127.  She                                                               
asserted  that  the  intentions  behind   EO  127  appear  to  be                                                               
respectable;  however, she  believes that  eliminating the  board                                                               
will   fail  to   meet  the   stated  objectives.   In  addition,                                                               
eliminating the board would  potentially expand human trafficking                                                               
and   prostitution   in   the  profession   and   undermine   the                                                               
professionalism  that  licensed  massage therapists  have  worked                                                               
diligently to maintain.                                                                                                         
                                                                                                                                
3:16:50 PM                                                                                                                    
MS.  ATWELL detailed  what  the  board has  done  to shorten  the                                                               
application  process. This  was done  without prompting  from the                                                               
department. She  stated that  if the  board were  eliminated, the                                                               
licensing  process  would  become less  efficient  and  licensing                                                               
costs would increase.                                                                                                           
                                                                                                                                
3:18:17 PM                                                                                                                    
MS. ATWELL  stated that  professional, vetted  massage therapists                                                               
are  able to  recognize the  signs of  human and  sex trafficking                                                               
when they  show up during  the application process  and expressed                                                               
concern that division staff would  miss these signs. In addition,                                                               
she  expressed   concern  that   the  division   of  professional                                                               
licensing  is  understaffed and  unable  to  keep up  with  board                                                               
associated  responsibilities  and  cited  multiple  instances  of                                                               
related web site inaccuracies or  lack of updates, which were not                                                               
remedied, even after the issues  were pointed out. She questioned                                                               
how  they would  manage the  added  duties, should  the board  be                                                               
eliminated.  She expressed  concern that  the division  would not                                                               
ensure  that  staff  are  educated   on  issues  related  to  the                                                               
profession.  She  stated that,  because  board  members are  also                                                               
massage therapists,  they are passionate about  issues facing the                                                               
profession and  reiterated their fervent  desire that this  EO be                                                               
stopped.                                                                                                                        
                                                                                                                                
3:22:10 PM                                                                                                                    
MICHELLE  MCMULLIN, Chair,  Board  of  Barbers and  Hairdressers,                                                               
Anchorage, Alaska,  testified by invitation  on EO 129.  She said                                                               
she has been on  the board for 7 years and has  been chair of the                                                               
board for 4  years. She shared several issues that  the board has                                                               
dealt with  in recent  years. She  detailed the  difficulties the                                                               
board  has  had  when  attempting  to  work  with  the  division,                                                               
including  issues   with  retaining   a  health   inspector.  She                                                               
expressed  frustration with  the lack  of communication  from the                                                               
Division and  pointed out that  the board relies on  the Division                                                               
to  communicate with  other state  departments, which  often does                                                               
not happen.                                                                                                                     
                                                                                                                                
3:26:02 PM                                                                                                                    
MS. MCMULLIN detailed several concerns  about the current process                                                               
of  appointing members  to the  board. She  expressed frustration                                                               
that the Boards  and Commissions has appointed people  who do not                                                               
show up to  meetings and give no advance notice.  She stated that                                                               
several  individuals have  expressed interest  in serving  on the                                                               
board;  however,  they  have  not   heard  back  regarding  their                                                               
applications.  She  emphasized the  importance  of  a health  and                                                               
safety inspector  to ensure that licensees  are operating safely.                                                               
She  stated that  the board  is  not given  the transparency  and                                                               
communication that is needed for the board to do its job.                                                                       
                                                                                                                                
3:29:07 PM                                                                                                                    
BETHEL BELISLE, Chair, Board  of Certified Direct-Entry Midwives,                                                               
Anchorage, Alaska,  testified by invitation  on EO 130.  She said                                                               
she has  been a direct-entry midwife  since 1989 and has  been on                                                               
the board since March 2020. She  shared her belief that the board                                                               
is needed and  stated that the Board of  Direct-Entry Midwives is                                                               
opposed  to EO  130.  She  shared the  board's  position that  to                                                               
eliminate the  board would  not be  in the  best interest  of the                                                               
state, the  economy, or  public safety.  With respect  to meeting                                                               
quorum   requirements,  she   said  the   board  has   met  these                                                               
requirements   at  all   but  one   meeting.  She   stated  that,                                                               
financially, the board is "in  the black" and licensees currently                                                               
pay $2800 every  two years to be licensed. She  added that, while                                                               
they are willing to continue  paying this, there is concern about                                                               
increased costs if  the board is eliminated.  She emphasized that                                                               
if midwives cannot  afford to pay for the license,  there will be                                                               
fewer midwives in  the state. She pointed out  that midwives have                                                               
saved the  state approximately $5 million.  She expressed concern                                                               
that fewer midwives  would mean less access to  quality care. She                                                               
stated  that she  has been  told  on several  occasions that  the                                                               
division is  unable to complete  certain tasks  due to a  lack of                                                               
staffing.                                                                                                                       
                                                                                                                                
3:32:12 PM                                                                                                                    
MS. BELISLE shared information regarding  an application that was                                                               
initially  lost by  the  Division  and later  cost  the board  $7                                                               
thousand.  She  acknowledged  that  the  board  has  been  giving                                                               
serious  attention  to  the   audit  recommendations,  which  has                                                               
increased application  processing times. However,  she emphasized                                                               
that   this    particular   application   delay   was    due   to                                                               
miscommunication  at  the  department  level, not  at  the  board                                                               
level. She  expressed concern that the  rampant mismanagement and                                                               
lack of staffing  will continue. With respect  to efficiency, she                                                               
said that  the board has  been working on legislation  that would                                                               
match the  regulations to  statutes - HB  175 (Board  of Licensed                                                               
Midwives).  She   explained  that   this  would   streamline  the                                                               
application and  relicensing processes.  She emphasized  that the                                                               
board brought this  issue to the department -  the department did                                                               
not bring this  issue to the board. She stated  the importance of                                                               
a  board  of  midwives  who  have  the  necessary  expertise  and                                                               
asserted that the board is doing  a good job meeting the needs of                                                               
the state.                                                                                                                      
                                                                                                                                
3:34:45 PM                                                                                                                    
ONICA  SPROKKREEF,  President,  Midwives Association  of  Alaska,                                                               
Kelowna, British Columbia, Canada,  testified by invitation on EO                                                               
130. She stated  that the Midwives Association  of Alaska opposes                                                               
EO 130. She said she has  been a practicing midwife in Alaska for                                                               
over  12  years  and  department  staffing  issues  have  been  a                                                               
continual concern  during that time.  She stated  that department                                                               
staff do not  understand the midwifery profession  and added that                                                               
a  great  deal  of  time  and  money  has  been  spent  educating                                                               
department staff. She shared her  understanding that the Board of                                                               
Direct-Entry  Midwives  does  not   currently  have  a  licensing                                                               
examiner  who is  capable of  helping the  board. She  shared her                                                               
belief  in the  importance of  midwifery and  stated that  EO 130                                                               
would  restrict  the  ability   of  Alaskan  families  to  access                                                               
midwifery.                                                                                                                      
                                                                                                                                
3:37:44 PM                                                                                                                    
CHAIR  BJORKMAN solicited  questions from  the committee.  Seeing                                                               
none,  and there  being no  further business  to come  before the                                                               
committee,  Chair   Bjorkman  adjourned  the  Senate   Labor  and                                                               
Commerce Standing Committee meeting at 3:37 p.m.                                                                                

Document Name Date/Time Subjects
EO127.pdf SL&C 1/31/2024 1:30:00 PM
Executive Order 127
EO127 Legal Memo-01.25.24.pdf SL&C 1/31/2024 1:30:00 PM
Executive Order 127
EO127 Public Testimony received as of 01.31.24.pdf SL&C 1/31/2024 1:30:00 PM
Executive Order 127
EO129.pdf SL&C 1/31/2024 1:30:00 PM
Executive Order 129
EO129 Legal Memo-01.26.24.pdf SL&C 1/31/2024 1:30:00 PM
Executive Order 129
EO129 Leg Audit Report 04.18.2018.pdf SL&C 1/31/2024 1:30:00 PM
Executive Order 129
EO129 Public Testimony received as of 01.31.24.pdf SL&C 1/31/2024 1:30:00 PM
Executive Order 129
EO130.pdf SL&C 1/31/2024 1:30:00 PM
Executive Order 130
EO130 Legal Memo-01.23.24.pdf SL&C 1/31/2024 1:30:00 PM
Executive Order 130
EO130 Leg Audit Report-10.14.2022.pdf SL&C 1/31/2024 1:30:00 PM
Executive Order 130
EO130 Public Testimony received as of 01.31.24.pdf SL&C 1/31/2024 1:30:00 PM
Executive Order 130
EO127 Leg Audit Report-08.14.2023.pdf SL&C 1/31/2024 1:30:00 PM