SB 80-EXTEND BOARDS  3:42:35 PM CO-CHAIR HALL announced that the next order of business would be CS FOR SENATE BILL NO. 80(FIN), "An Act extending the termination date of the Big Game Commercial Services Board; extending the termination date of the Board of Massage Therapists; extending the termination date of the Alaska Commission on Aging; extending the termination date of the Marijuana Control Board; and providing for an effective date." 3:43:51 PM SENATOR JESSE BJORKMAN, Alaska State Legislature, as prime sponsor, presented SB 80 as prime sponsor. He paraphrased the sponsor statement [included in the committee file], which read as follows [original punctuation provided]: Senate Bill 80 proposes to extend the sunset date of four boards, Board of Massage Therapists, the Marijuana Control Board, Alaska Commission on Aging, and the Big Game Commercial Services Board. The Board of Massage Therapists is comprised of five members appointed by the Governor. The duties of the Board include examining massage therapist applicants and issuing licenses, adoption of regulations, and establishing standards of professional competence. In the fall of 2023, Division of Legislative Audit completed a sunset audit report of the Board. In this audit it was determined that overall, the Board has operated in the public's interest by conducting its meetings in an effective manner as well as actively amending regulations to address statutory changes, improving the licensing process, and enhancing public safety. The Big Game Commercial Services Board is comprised of nine members appointed by the Governor. The duties of the Board are maintaining and writing examinations, generating reports, and licensing functions. Legislative Audit conducted a sunset audit report of the Board in the summer of 2023. The audit concluded that the Board operated in the public's interest by conducting its meetings in an effective manner, supporting statutory changes when deemed necessary, and actively amending regulations. The Marijuana Control Board is comprised of five members appointed by the Governor and is a regulatory and quasi-judicial board created for the purpose of controlling the cultivation, manufacture, and sale of marijuana in the state. The duties of the Board are to propose and adopt regulations, establish qualifications for licensure, review applications for licensure, order the executive director to issue, renew, suspend, or revoke a license, and hear appeals from the Board Director and from actions of officers and employees charged with enforcing Board statutes and regulations. The Alaska Commission on Aging is comprised of eleven members that make legislation and regulation recommendations to the governor and legislature to benefit older Alaskans. The duties of the board include helping older Alaskans lead dignified, independent, and useful lives, encouraging the development of municipal commissions and community- oriented programs and services to benefit elder Alaskans, and upon request, the commission assists Alaska Housing Finance Corporation senior housing office for senior housing loan program. 3:46:05 PM KRIS CURTIS, Legislative Auditor, Legislative Audit Division, Legislative Agencies and Offices, began her invited testimony to report on a series of audits related to SB 80. She explained that the division conducted sunset audits of all four boards mentioned by Senator Bjorkman. She began with the sunset audit on the Marijuana Control Board, stating that the division concluded that it was serving the public's interest and recommended a three-year extension. She explained that the division's recommendation was made in light of a report issued by the Governor's Advisory Task Force on Recreational Marijuana cautioning that there may be significant changes to both the Marijuana Control Board's duties and the Alcohol & Marijuana Control Office (AMCO). She additionally noted that a new information system expected to be implemented by the end of 2023 would significantly change the Marijuana Control Board's license and enforcement processes. She stated that a three-year extension would be timelier to review these significant changes and would additionally align the sunset date of the Marijuana Control Board with AMCO. MS. CURTIS spoke to three recommendations: AMCO's director should establish procedures to ensure that the marijuana handler permit documentation was "properly maintained," the AMCO director continues to implement a new license and enforcement database, and lastly, the legislature should require marijuana board regulations to be approved by a majority of board members. MS. CURTIS moved to the second sunset audit on the Board of Massage Therapists, noting that it was serving the public's interest and recommending a six-year extension. Additionally, she recommended that the director of the Division of Corporations, Business and Professional Licensing (DCBPL) create a procedure to ensure that licenses are not approved with a basis on outdated documentation. The division also recommended that the commissioner of the Department of Commerce, Community, and Economic Development (DCCED) "work with policymakers to improve the recruitment and retention of investigators ... and licensing staff." Lastly, she stated that the division recommended an increase in licensing fees. MS. CURTIS moved to the third sunset audit on the Big Game Services Commercial Board (BGCSB), noting that BGCSB was operating in the public's interest and recommending a six-year extension. She stated that the division had two additional recommendations: the DCBPL director should improve oversight to ensure the procurement and review of required licensed documentation, and BGCSB should reconsider the necessity of two private landholder board seats in effective regulations. MS. CURTIS finished with the fourth sunset audit on the Alaska Commission on Aging (ACoA), concluding that ACoA served the public's interest by "helping older Alaskans lead dignified, independent, and useful lives through advocacy, outreach, and education." She further noted that ACoA fulfills a federal requirement for each state to establish a council to advise the state on matters of aging, including developing and administering a state plan. She noted that the division recommended an eight-year extension of ACoA with one recommendation that ACoA's chair ensure that the annual analysis and evaluation report is complete and provided to the legislature and the governor as required by Alaska Statute (AS). 3:50:09 PM ANNETTA ATWELL, Chair, Board of Massage Therapists, began her invited testimony on SB 80. She explained that the Board of Massage Therapists serves legislative, judicial and executive functions. She explained that the Board of Massage Therapists "creat[es] ... regulations, adapting existing statutes and regulations to keep the State of Alaska updated with the national trends and standards" in adherence to legislative responsibilities. She stated that the Board of Massage Therapists protects stakeholders through the creation or amendment of new or existing laws and regulations that require updates. She further explained that the board "interpret[s] statutes and regulations" when considering questions of licensing, renewal of license, investigations, and questions of qualifications for continuing education to uphold its judicial responsibilities. She explained that the executive functions of the Board of Massage Therapists include ensuring constituents are up to date with the "requirements of their licensure, scope, and practice." She noted that the board applies consequences, when necessary, that are agreed upon by the majority. She noted that the board is financially stable, and that she had been advised during the sunset audit to increase fees to meet the demands of investigative responsibilities and the board's day- to-day operations. She stated that the board was waiting on legislative review and finalization before increasing its fees. MS. ATWELL spoke to investigations that focused on "bad actors" and those practicing without a license. She noted that the Board of Massage Therapists would be grateful to the legislature if it were to create a bill to take on investigative fees. She stated that the remaining findings of the audit were concerning Alaska's Division of Corporations, Business and Professional Licensing, noting that the Board of Massage Therapists was awaiting legislation to increase its fees. She thanked the committee for its time. 3:53:22 PM The committee took a brief at-ease at 3:53 p.m. 3:53:33 PM BAILEY STUART, Chair, Marijuana Control Board, began her invited testimony by stating that the Marijuana Control Board fully supported the recommendations made by the division as proposed under SB 80. She stated that the extension was critical to oversight and stability of the [marijuana] industry. She stated that the [marijuana] industry was facing significant challenges from federal shipping policies to public health and safety concerns in Alaska. Alaska has a prolific illicit market which is a serious threat to the regulated industry. She asserted that Alaska has knowingly shielded illicit operators from prosecution. She stated that the illicit market continues to operate outside of state oversight, avoid taxation, and directly undermine legal businesses. She asserted that this lack of accountability creates an unfair competitive advantage that jeopardizes the "vitality and stability of compliant, legal operators." MS. STUART stated that despite recent regulatory changes by the Division of Agriculture prohibiting any amount of tetrahydrocannabinol (THC) in hemp products, the "gray market" consisting of unregulated hemp products with THC continues to enter Alaska's marketplace, retail stores, and homes via e- commerce with no enforcement. She reported that during the Board of Marijuana's meeting in February, it heard public testimony detailing the severity of these challenges. She stated that the industry was grappling with these unforeseen markets, as well as navigating complex taxation concerns. She asserted that the extension recommended by SB 80 was critical for the Board of Marijuana to continue its work in addressing these issues. She stated that she would be happy to answer any questions regarding SB 80 and the Board of Marijuana extension. 3:56:08 PM KEVIN RICHARD, Director, Alcohol and Marijuana Control Office, stated that he was online to answer questions. 3:56:46 PM CO-CHAIR HALL announced that SB 80 was held over.