SB 54-EXT ARCH, ENG, SURVEY BRD; REG INT DESIGN  5:29:56 PM CO-CHAIR FIELDS announced that the final order of business would be CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 54(FIN), "An Act relating to registered interior designers and interior design; relating to project costs for the construction, enlargement, or improvement of airports; extending the termination date of the State Board of Registration for Architects, Engineers, and Land Surveyors; relating to the State Board of Registration for Architects, Engineers, and Land Surveyors; establishing requirements for the practice of registered interior design; relating to the practice of architecture, engineering, land surveying, landscape architecture, and registered interior design; relating to the scope of the certification requirements for architects, engineers, land surveyors, landscape architects, and registered interior designers; relating to immunity for design professionals; relating to the cost of construction for recreation centers; relating to liens for labor or materials furnished; relating to the procurement of landscape architectural and interior design services; relating to the cost of construction of safe water and hygienic sewage disposal facilities in villages; and providing for an effective date." 5:30:58 PM SENATOR MATT CLAMAN, Alaska State Legislature, as prime sponsor, presented CSSB 54(FIN). He gave a sponsor statement for CSSB 54(FIN) [included in the committee file], which read as follows [original punctuation provided]: Senate Bill 54 will extend the statutory authorization for the Board of Architects, Engineers, and Land Surveyors (AELS Board), add Registered Interior Designers to the board's jurisdiction, and make statutory changes requested by the board. This bill will allow the AELS Board to continue the important work of regulating design professionals in Alaska and add a qualified interior designer to the board. The 2024 Sunset Audit of the AELS Board concluded that the board served the public's interest and recommended that it be extended by eight years. In this bill, the AELS Board is taking the opportunity to update outdated language based on their analysis since the last sunset audit. Another important part of SB 54 is the opportunity for qualified interior designers to register with the AELS Board. Those wishing to practice registered interior design in buildings of public occupancy within a regulated scope of services impacting public health, safety, or welfare will now have a pathway to registration. SB 54 will allow designers practicing in public occupancy buildings to be qualified to do so, providing another measure of public safety protection and risk-mitigation for commercial buildings. It will increase the design professionals able to work independently within the commercial real estate industry. Passage of SB 54 will allow Alaska to join other forward-looking states in providing a construction document stamp to allow registered interior designers to submit their own work for permitting. These states have recognized that increasing access to qualified design professionals in the design and construction marketplace means greater choice for consumers, cost savings, greater opportunity for small businesses, enhanced project teams, and improved completion schedules. These states have maintained public safety standards. SB 54 will bring economic benefits by increasing professional employment opportunities, providing incentive to hire Alaskans for professional interior design, attracting high-quality design talent to the state, encouraging small business, and expanding consumer choices for qualified design professionals. SB 54 does not change the requirements or daily practice for any other professional in design or construction including architects, engineers, contractors, trades people, decorators, or residential designers. 5:34:52 PM REPRESENTATIVE SADDLER asked how many interior designers are practicing in Alaska. SENATOR CLAMAN offered his belief that there may be hundreds of interior designers practicing in Alaska. 5:35:30 PM COLIN MAYNARD, Chair, Legislative Liaison Committee, Alaska Board of Architects, Engineers, & Land Surveyors ("the board"), gave invited testimony in support of CSSB 54(FIN). He stated that the proposed legislation recognizes the contributions that the board makes to public health, safety, and welfare. He further noted that CSSB 54(FIN) recognizes that the board follows all applicable statutes and regulations and provides an eight year extension. He further noted that the proposed legislation would make several statutory changes requested or approved by the board, including altering the makeup of the board; placing in statute the appropriate salary range for the executive administrator; adding a Title Act for registered interior designers which would allow qualified individuals to practice independently; modifying and adding statutes at the request of the National Transportation Safety Board (NTSB) and the Department of Environmental Conservation (DEC); and modifying existing statutes to ensure that all design professions are treated similarly by the State of Alaska. He encouraged the passage of CSSB 54(FIN), so as to avoid the sunset of the board which would begin on July 1, [2025]. MR. MAYNARD, in response to Representative Saddler's earlier question, stated that there were about 55 individuals that had active or inactive National Council for Interior Design Qualification (NCIDQ) certifications and commented that there are typically as many out-of-state registrants as there are in- state registrants. He estimated that there could be 100 to 200 interior designers who held certifications in Alaska. MR. MAYNARD, in response to an additional question from Representative Saddler, further noted that there are a lot of individuals who do not have the NCIDQ certification, as it was not currently necessary, but may be in the future. 5:38:18 PM SENATOR CLAMAN noted that the proposed legislation makes a distinction between registered interior designers and interior designers in the state. He suspected that there are likely thousands of individuals who might be considered interior designers in Alaska and gave examples such as kitchen, bathroom, or small home remodels that included interior design. He predicted that under the provisions of CSSB 54(FIN), approximately 40 to 75 individuals would seek registration. He reiterated that he does not expect the majority of individuals who provide interior design services to seek registration under the proposed legislation. 5:39:31 PM DANA NUNN, Chair, Governor Advocacy Committee, American Society of Interior Designers (ASID), Alaska Chapter, replied that there are 54 active or inactive NCIDQ certificate-holders in Alaska, currently, who would be directly affected by CSSB 54(FIN). She commented that she was aware of an additional six individuals in the process of taking the NCIDQ exam. She anticipated that there were an additional 40 to 60 individual designers in Alaska that provide residential, kitchen, and bathroom design. She noted that there are many more who might qualify as interior designers, such as the person selling a countertop at a home improvement retailer like Home Depot or Spenard Builders Supply. She asserted that CSSB 54(FIN) would incentivize interior designers to come and reside in Alaska. She further compared the number of interior designers currently in Alaska to the number of landscape architects in Alaska prior to the registration of landscape architecture and predicted that the number of interior designers in Alaska would grow as a result of the proposed legislation in a manner similar to the number of landscape architects. She provided a personal anecdote, noting that a former assistant of hers left the state due to the lack of registration for interior designers. 5:41:22 PM MATT BARUSCH, Director, Government Affairs, Council for Interior Design Qualification, gave invited testimony in support of CSSB 54(FIN). He gave prepared remarks [included in the committee file], which read as follows [original punctuation provided]: On behalf of the Council for Interior Design Qualification (CIDQ), I write to you today in support of Senate Bill 54, which would protect the health, safety, and welfare of the public if passed. CIDQ is the premiere certifying organization for interior design professionals. Our organization develops and administers the three-part NCIDQ Examination, the national interior design certification examination utilized by U.S. jurisdictions for interior design registration or licensure, which assesses the competency of candidates to protect the public through the practice of interior design. With a membership comprised of state regulatory boards from across the United States and Canada, our organization takes seriously the responsibility to protect the public's health, safety and welfare, a responsibility our certified interior designers share. NCIDQ-Certified Interior Designers are required to undergo formal postsecondary education and thousands of hours of paid, supervised experience to sit for the examination, which tests interior designers' knowledge of core competencies required for professional practice in the industry. This combination of education, experience, and examination helps ensure minimal competency of our certificate holders in the distinct practice of interior design, most of which practice in commercial, codebased environments like office buildings, hotels, hospitals, schools, etc. Our certificate holders are trained, tested, and qualified to design safe, functional public spaces in their practice. Reasonable regulation of interior designers utilizing the NCIDQ Exam provides a means of offering the state and the public assurance that interior designers are qualified to practice in a manner that protects the public in Alaskan public spaces. CIDQ is prepared and committed to working with the Alaska AELS board and staff, as we do with all our member boards, to implement this bill, to protect health, safety, and welfare, and ensure that practicing Registered Interior Designers in Alaska are trained and competent. We thank the committee for considering this legislation and ask for a favorable report on this bill. Thank you, and I'm happy to be a resource to the committee to answer questions about the NCIDQ exam. MR. BARUSCH further reported that interior design professionals are regulated in 29 states, in addition to Washington D.C. and Puerto Rico. He stated that CSSB 54(FIN) would adopt a framework consistent with the majority of states. 5:42:18 PM JESSICA CEDERBERG, American Institute of Architects Alaska (AIA Alaska), gave invited testimony during the hearing on CSSB 54(FIN). She gave prepared remarks [included in the committee file], which read as follows [original punctuation provided]: We would like to take this opportunity to update you on our current position related to SB54. AIA Alaska worked with Senator Claman and NCIDQ interior designers to address our primary concerns that were part of previously proposed interior design legislation. We appreciate SB54 Sponsor's willingness to compromise by offering a Title Act rather than the Practice Act bills that were proposed in previous sessions. Establishing a Title Act is the essential condition for AIA Alaska to remove opposition and remain neutral to interior design regulation. AIA Alaska does not support interior design registration through a Practice Act. Senator Claman introduced SB 54 this session as a Title Act, with language to allow permitting privileges for interior designers through the use of a stamp (seal). AIA Alaska appreciates the clarity provided by Legislative Counsel, Conran Gunther in his January 15, 2025 memo that accompanied the draft bill. He stated, "A title act does not require a license to practice an occupation, rather it establishes an optional license that allows a person to use a protected title when practicing that occupation." He further stated, "[This bill draft] does not prohibit the practice of interior design by a person who does not use the title 'registered interior designer.'" This is articulated in Sec. [15] of the bill. We understand that changes to bills often occur during the legislative process, and we will participate in hearings and meetings to ensure that SB54 remains a Title Act bill. If any revisions occur to this bill that change the intent of the bill from being a Title Act with permitting privileges, AIA Alaska will reevaluate our position. Again, thank you for ongoing attention to this matter and your service to our community. MS. CEDERBERG corrected discussion in prior committee that purported that interior designers were required to register to practice due to federal contracting requirements. She said that there were alternatives to practice, such as the NCIDQ certification. She reported that there were currently 300 interior designers registered in Alaska, with only 21 holding NCIDQ certificates. She thanked the committee for their attention to the matter. 5:45:58 PM REPRESENTATIVE SADDLER requested written testimony from the invited testifiers. SENATOR CLAMAN replied that written testimony could be found in the bill file. 5:47:29 PM KRIS CURTIS, Auditor, Division of Legislative Audit, Legislative Agencies and Offices, reported conclusions from the sunset review of the State Board of Registration for Architects, Engineers, and Land Surveyors. She noted there were no recommendations for improvements. She stated that an eight-year extension was recommended for the board. She reported that, as of January 2024, there were 6,028 registrants, which represented a 10 percent decrease from the 2016 audit. She additionally reported that the board had a surplus of $1.2 million in January 2024. She stated that management concurred with the audit and agreed with the full eight year extension proposed under CSSB 54(FIN). 5:48:34 PM MS. CURTIS, in response to a question from Representative Saddler, stated that, without extension, the board would be terminated on July 1, 2025, and it would go into a one-year winddown period. MS. CURTIS, in response to a follow-up question from Representative Saddler, responded that the audit looked only at the board extension proposed under CSSB 54(FIN) using criteria determined by Alaska Statute and did not have any opinion or recommendations on the other provisions of the proposed legislation. 5:49:23 PM CO-CHAIR FIELDS set an amendment deadline for SB 54. [CSSB 54(FIN) was held over.]