CS FOR SENATE BILL NO. 193(FIN) "An Act extending the termination date of the Board of Chiropractic Examiners; requiring a report on audit compliance by the Board of Chiropractic Examiners; and providing for an effective date." 1:32:46 PM MADISON GOVIN, STAFF, SENATOR PETER MICCICHE, introduced the bill with prepared remarks. She relayed that the legislation extended the Board of Chiropractic Examiners (BCE) termination date five years to June 30, 2027. The audit concluded that the board served the public's interest by conducting meetings in accordance with State laws, amending certain regulations to improve the chiropractic profession, and effectively licensing and regulating chiropractic physicians. The bill required the Legislative Audit Division to submit a report to the Legislative Budget and Audit Committee (LBA) concerning the compliance of the board within one year after the effective date. She urged the committees support in extending the board. Co-Chair Merrick asked to hear from the Division of Legislative Audit. 1:33:46 PM KRIS CURTIS, LEGISLATIVE AUDITOR, ALASKA DIVISION OF LEGISLATIVE AUDIT, reviewed the legislative audit. She read the conclusions from page 1 of the Audit: Overall, the audit concluded that the board served the public's interest by conducting meetings in accordance with State laws, amending certain regulations to improve the chiropractic profession, and effectively licensing and regulating chiropractic physicians. Additionally, the audit found one board member did not meet statutory requirements for appointment and additional resources were needed to investigate cases in a timely manner. In accordance with AS 08.03.010(c)(5), the board is scheduled to terminate on June 30, 2022. We recommend that the legislature extend the board's termination date five years to June 30, 2027, which is less than the eight-year maximum allowed in statute. The reduced extension is due to an issue identified during the audit that may impact the board's ability to protect the public. The details of the issue are not included in this report to preserve the confidentiality of an ongoing investigation. The reduced extension reflects the need for continued oversight. Ms. Curtis drew attention to Page 5 of the audit that included a chart titled "Exhibit 2" that listed the BCEs licensing activity. She indicated that as of January 31, 2021, there were 306 licensed chiropractors. She turned to the chart titled "Exhibit 3" on Page 6 that depicted the board's revenues and expenditures. She indicated that the board alternated between a deficit and a surplus. According to the Division of Corporate, Business, and Professional Licensing (DCBPL) management, the deficit was within a reasonable range and no fee changes were recommended. She noted that the license fees were listed on the chart titled Exhibit 4 on page 7. She furthered that the audit made two recommendations found on page 9 of the audit report. She stated the first recommendation as follows: The governor should make Board of Chiropractic Examiners (board) appointments in compliance with statutory requirements. Ms. Curtis delineated that the governor appointed a licensed Emergency Medical Technician (EMT) as the public member on the board. Statutes prohibited the public member to not have a financial interest in the health care industry. She moved to the second recommendation as follows: DCBPL's director should allocate sufficient resources to ensure cases are addressed in a timely manner. All 11 cases open over 180 days from July 2017 through January 2021 were evaluated by auditors. It was identified that seven of the cases involved the same chiropractor and were combined into one case. Auditors found the case had four periods of unjustified inactivity ranging from 55 to 208 days. According to DCBPL investigative staff, the inactivity was the result of competing priorities and insufficient resources. Ms. Curtis highlighted that managements response to the audit began on Page 21. She reported that the commissioner of the Department of Commerce, Community and Economic Development (DCCED) hired two new investigators, which she believed would improve the quality and timeliness of investigations. The governor's response was on page 23 of the audit. She related that the governor agreed with the first recommendation and notified the auditor that the board member had been removed. The boards chairs response began on Page 25. She communicated that the chair did not agree with the 5-year extension. He believed that the board was being unfairly penalized for actions on behalf of the governors office and DCBPL. He requested that the board be granted an 8-year extension. 1:37:13 PM GLENN HOSKINSON, DIVISION OF CORPORATIONS, BUSINESSES AND PROFESSIONAL LICENSING, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT (via teleconference), reviewed the department's published fiscal impact fiscal note (FN3 (CED) for DCCED, DCBPL. She explained that the fiscal note showed the cost of operating the board and not the cost of the program. The expenses incurred were as follows: Travel costs were $20.3 thousand for 5 board members and 1 staff member to attend four board meetings per year and associated costs and services for advertising of public notice of board meetings, training and conference fees, and stipends for board members attending board meetings in its community of residence. SB 193 was HEARD and HELD in committee for further consideration. 1:38:29 PM AT EASE 1:38:57 PM RECONVENED