HB 158-PROFESSIONAL LICENSING; TEMP PERMITS  10:18:29 AM CHAIR EISCHEID announced that the only order of business would be HOUSE BILL NO. 158, "An Act relating to professional licensing; relating to temporary licenses for certain professions; and providing for an effective date." 10:19:32 AM ANNA LATHAM, Deputy Commissioner, Depart of Commerce Community and Economic Development, on behalf of House Rules by Request of the Governor, prime sponsor, presented HB 158 to the committee. She read from a prepared statement [not included in the committee packet], which read as follows [original punctuation provided]: Good morning, Chair Eischeid and members of the House Military & Veterans' Affairs Committee. For the record, my name is Anna Latham, Deputy Commissioner for the Department of Commerce, Community, and Economic Development. First and foremost, I recognize that many of you on this committee have served in the military and want to thank you for your service to our country. I'm here this morning with Director Robb to discuss Governor Dunleavy's House Bill 158: Professional Licensing; Temp Permits. This legislation establishes a single, temporary license, administered by the department of commerce, which replaces the various temporary privileges found across Alaska's professional licensing laws. o Allows professional who are licensed in other states, and in good standing, to work in Alaska while their permanent licenses is being processed. o We've seen major changes in our workforce since the pandemic, when the portability of licenses for health care professionals became incredibly important. o The US has moved towards standardization across many professions, and the legislature in the past few years has also passed many bills which allowed for compacts, most recently for speech pathologists and physical therapists. o This improves the existing system, which requires applicants to navigate a web of differing department and board-issued temporary license types to identify the appropriate process to obtain a temporary license. o What this is about is attracting qualified professionals to the state and allowing them to get to work faster. This bill also brings Alaska into compliance with federal license portability under the Servicemembers Civil Relief Act (SCRA). It requires commerce to issue a professional license to a military servicemember or spouse who holds an out-of-state license and relocates to Alaska under military orders. At this point, I'd like to hand off the presentation to Director Robb. I want to thank you all again for your time this morning to discuss this important legislation and invite you to reach out to our office anytime if you have any questions. 10:21:32 AM SYLVAN ROBB, Director, Division of Corporations Business and Professional Licensing, on behalf of House Rules by Request of the Governor, prime sponsor, gave a PowerPoint presentation on HB 158. She began on slide 2, which gave a broad overview of the professional licensing work that is done by the Division of Corporations, Business, and Professional Licensing (DCBP) of the Department of Commerce, Community, and Economic Development (DCCED). 10:26:57 AM CHAIR EISCHEID asked what the vacancy rate within the DCBP is and asked why the process of transmitting professional licensure in Alaska is so rigorous. DIRECTOR ROBB answered that 19 of the 130 positions within the DCBP are vacant and said that statutory requirements are reason for rigorous licensure processes. 10:29:12 AM REPRESENTATIVE ALLARD asked if the proposed legislation included civilians, veterans, and nurses and midwives. DIRECTOR ROBB explained that HB 158 would include civilians, veterans and said that nurses and midwives were not included in the proposed legislation because they would be covered by a universal professional license. 10:33:01 AM REPRESENTATIVE SADDLER asked why there has been a significant increase in professional licensure in Alaska. DIRECTOR ROBB replied that the increase in professional licensure in Alaska could be attributed to the Alaska State Legislature increasing the amount of professions that require licensure. 10:33:43 AM REPRESENTATIVE ALLARD asked if the Servicemember Civil Relief Act would still remain in effect if the proposed legislation were to fail in passage. DIRECTOR ROBB confirmed that the Servicemember Civil Relief Act would still remain in effect if the proposed legislation were to fail to become law and said that the purpose of the proposed legislation was to align Alaska Statutes with the previously mentioned federal law. 10:35:26 AM DIRECTOR ROBB resumed the presentation on slide 3, which listed the 21 programs in Alaska that are regulated by boards and moved to slide 4, which listed the 24 programs that are regulated directly by the DCBP. She continued to slide 5, which detailed the two main policy goals of HB 158 and moved to slide 6, which described universal temporary licensure (UTL). She continued to slide 7, which explained how a person might qualify for UTL. 10:40:37 AM REPRESENTATIVE SADDLER asked how the DCBP would determine a person's standing of their professional licensure in another state. He asked if there was a standardized process across all states to probe the good standing of someone's professional licensure. DIRECTOR ROBB said that easier verification was one of the reasons for business compacts becoming more popular in Alaska and explained how a person's standing with the DCBP was reflected in their licensure application. 10:43:02 AM CHAIR EISCHEID shared his understanding that the DCBP would not issue a professional license in Alaska before their good standing in other states was assured. DIRECTOR ROBB answered that some professions were harder to perform background checks than others, in some cases due to the professionals literally wearing their fingerprints off. 10:44:50 AM DIRECTOR ROBB resumed the presentation on slide 7 and moved to slide 8, which outlined how UTL would work if HB 158 were to become law. 10:47:03 AM REPRESENTATIVE HALL asked what the reasoning behind the 180 day timeline listed on slide 8 was. DIRECTOR ROBB answered that some professions require an exorbitant amount of time to review an applicant's associated paperwork. 10:48:58 AM GLENN SAVIERS, Deputy Director, Division of Corporations Business and Professional Licensing, answered committee questions on HB 158. She said that the 180-day model matches the system that is currently in place by many boards and said that the idea is to expand an idea that works to other sectors. 10:50:31 AM REPRESENTATIVE SADDLER asked if the revocation of someone's UTL is the only sanction that the DCBP might be able to use against someone who obtained their license through deceit or fraud. DIRECTOR ROBB answered that the revocation of someone's UTL is generally the only thing that the DCBP could to a fraudulent applicant. DEPUTY DIRECTOR SAVIERS added that punishment for a disingenuous applicant is administered on a case-by-case basis. 10:52:36 AM REPRESENTATIVE GRAY commented that his license to work as a physician's assistant was tangled in bureaucracy and waiting. 10:53:36 AM REPRESENTATIVE ALLARD shared her experience in having her top- secret clearance taking a long time to obtain. 10:54:51 AM REPRESENTATIVE HALL suggested to the governor that the proposed legislation be split into two bills in order to move it through the government faster. DIRECTOR ROBB explained that it was the DCBP's intent to put the legislative goals of its agency into one piece of legislation due to the oftentimes lengthy and difficult legislative process. 10:57:23 AM CHAIR EISCHEID asked if a UTL applicant could "game the system" to abuse the benefits of UTL. DIRECTOR ROBB explained that someone could not be in UTL status indefinitely. 10:59:07 AM REPRESENTATIVE ALLARD asked if courtesy licenses could still be an option in lieu of UTL. DEPUTY DIRECTOR SAVIORS replied that courtesy licensure would still be an option in lieu of UTL. 11:00:01 AM REPRESENTATIVE SADDLER asked how the proposed legislation would affect courtesy licenses and temporary licenses. DIRECTOR ROBB answered that HB 158 would affect the regulatory oversight of both courtesy and temporary business licensure. 11:01:35 AM DIRECTOR ROBB resumed the presentation on slide 9, which emphasized the necessity of UTL in Alaska and continued to slide 10, which explained the governor's belief in the success of UTL. She moved to slide 11, which compared the difference between UTL and an interstate licensure compact (ILC). 11:09:09 AM REPRESENTATIVE GRAY shared his understanding of the necessity of UTL even when an ILC might be more amicable. DIRECTOR ROBB said that Representative Gray's understanding was correct. 11:09:56 AM DIRECTOR ROBB resumed the presentation on slide 12, which gave a broad overview of professional licensure portability laws under the Servicemember Civil Relief Act (SCRA) and moved to slide 13, which listed the amount of license that the SCRA is currently issuing under the SCRA. She moved to slide 14, which explained the necessity of HB 158 even if the SCRA is in federal law and concluded the presentation on slide 15. 11:17:37 AM REPRESENTATIVE SADDLER asked if someone applying for UTL is obligated to obtain a permanent license and asked how UTL would streamline the professional licensing process. DIRECTOR ROBB answered that someone looking to obtain UTL is not required to obtain a permanent license and said that "there are efficiencies to be had" with regard to making the professional licensure process more straightforward. 11:19:37 AM DIRECTOR ROBB read the sectional analysis for HB 158 [included in the committee packet], which read as follows [original punctuation provided]: Section 1 Adds a new section AS 08.01.061 temporary license to allow the department to issue a temporary license to practice an occupation in AS 08.01.010 (Centralized Licensing: applicability of chapter) if the applicant: • Either o Is licensed/credentialed to practice in another U.S. jurisdiction that has substantially equivalent license requirements to Alaska's and authorizes a scope of practice substantially equivalent to Alaska's; or o Does not hold licensure in a U.S. jurisdiction, but meets the qualifications and requirements through military education, training, and service under AS 08.01.064 (Centralized Licensing: military education, training, and service credit; temporary license); and •Is not the subject of disciplinary action in another jurisdiction; and •Has not committed an act in another jurisdiction that would constitute grounds for denial or revocation of a license in Alaska; and • Pays the required fees. If Alaska law requires a background check for the permanent license, the background check will also be required for the temporary license, but the department may opt to grant a temporary license before obtaining the resulting report. If a temporary license is obtained through deceit, fraud, or intentional misrepresentation, the department may take disciplinary action, including revocation. A temporary license is valid for up to 180 days, with an option to apply for a one-time 180-day extension to be approved at the department's discretion. A person can work at the full scope of practice for the occupation for which they hold the temporary license. Temporary licenses are not available for occupations regulated under AS 08.54 (Big Game Guides and Related Occupations) or AS 08.62 (Marine Pilots); as those professions require Alaska-specific training. Section 2 Amends AS 08.01.062 courtesy licenses to remove the department's authority to create courtesy licenses, since those are no longer required with the creation of temporary licenses in Section 1. Professional licensing boards are still allowed to create courtesy licenses, but they are designed to be available for a limited purpose as established by the board in regulation. Section 3 Repeals and reenacts AS 08.01.063 portability of professional licenses for servicemembers and their spouses to ensure Alaska's military licensing provisions comply with the federal Servicemembers Civil Relief Act (SCRA) licensure portability provisions, which took effect in January 2023 and were amended in March 2025. In compliance with the SCRA laws, this section requires the department to issue a professional license to a servicemember or servicemember's spouse if the applicant: • Applies to the department; and Has military orders to a duty station in Alaska; and • Holds a license/certificate in another U.S. jurisdiction; and • Is in good standing in all U.S. jurisdictions where they've ever been licensed; and • Submits a notarized affidavit affirming that: and o The applicant is the person described and identified in the application; and o All statements made in the application are true and correct; and o The applicant has read and understands the requirements to receive the license and the scope of practice for the relevant license type; and o The applicant will comply with the requirements to practice under the license, including requirements related to discipline and fulfillment of continuing education; and o The applicant is in good standing with all U.S. jurisdictions where they've been licensed; and •If the applicant is a military spouse, a copy of their marriage license; and •Payment of any applicable fees. In compliance with the SCRA laws, if an applicant meets the requirements above, the department shall issue the license within 30 days unless additional time is required to complete a criminal background check, in which case the department must issue a temporary license within the 30 days while awaiting the background check. This section only applies to licenses set out under AS 08.01.010 (Centralized Licensing: applicability of chapter), and in compliance with the SCRA laws, does not apply to a profession that's subject to an interstate licensing compact that has been entered into by the state. The terms "license," "licensing authority," "military orders," "military service," "scope of practice," and "servicemember" are defined as they are listed in the SCRA in 50 U.S.C. 3911. Sections 4-22 Make conforming changes to replace existing references to temporary licenses, temporary permits, etc. with references to temporary permits under AS 08.01.061 (create by Section 1). These conforming changes are made in the following statutes: •AS 08.13.070 Barbers and Hairdressers: license required •AS 08.13.120(b) under Barbers and Hairdressers: shop license •AS 08.13.130(a) under Barbers and Hairdressers: display of license or permit •AS 08.13.150 Barbers and Hairdressers: disciplinary sanctions and grounds for refusal of a license or permit •AS 08.13.175 Barbers and Hairdressers: temporary license •AS 08.13.185(a) under Barbers and Hairdressers: fees •AS 08.13.190 Barbers and Hairdressers: failure to possess a license or permit •AS 08.20.180(a) under Chiropractors: fees •AS 08.36.100 Dentistry: license required •AS 08.64.279 Medicine: interview for permit or temporary license •AS 08.64.315 Medicine: fees Section 23 Makes conforming changes by repealing all existing statutes on temporary licenses/permits for professions identified in AS 08.01.010 except those under AS 08.54 and AS 08.62. Section 24 Makes conforming changes by annulling all regulations specific to temporary military courtesy licenses. Section 25 Adds a new Transition: Regulations section to uncodified law to allow the department to adopt regulations necessary to implement this Act. Section 26 Adds a new Transition: Savings Clause section to the uncodified law to clarify that pending litigation, hearings, investigations, appeals, and other proceedings continue in effect not withstanding a transfer, amendment, or repeal provided in this Act; that existing licenses, certificates, orders, regulations, and permits issued under a law amended or repealed by this Act will remain in effect for the term issued; and that contracts, rights, liabilities, and obligations created under a law amended or repealed by this act that are in effect as of the effective date will remain in effect. Section 27 Provides an immediate effective date for Section 3, 25, and 26. Section 28 Provides a July 1, 2026, effective date for Sections 1-2 and Sections 4-24. 11:26:45 AM REPRESENTATIVE SADDLER asked how the DCBP does work regarding the determination of someone's qualifications for the professional license they are applying for. He asked what a "limited purpose" license is and asked why the proposed legislation doesn't provide specific definition of the professions covered by a "limited purpose" license. DEPUTY DIRECTOR SAVIORS explained that the DCBP analyzes an applicant's examination, education, and experience as a part of its process in determining someone's qualifications for a business license in Alaska. She used the example of a veterinarian providing services to dog teams running the Iditarod as a moment where a "limited purpose" license might come into effect. 11:31:19 AM CHAIR EISCHEID asked why the fiscal note for HB 158 has been changing over its time in the Alaska State Legislature. DEPUTY DIRECTOR SAVIORS explained that the UTL legislation that passed the 33rd Alaska State Legislature concerned most of the licensure processes that would cost the state the most money. 11:32:41 AM DIRECTOR ROBB thanked the committee for their discussion and time. 11:33:39 AM CHAIR EISCHEID announced that HB 158 would be held over. 11:34:05 AM ADJOURNMENT  There being no further business before the committee, the House Special Committee on Military & Veteran's Affairs meeting was adjourned at 11:34 a.m.