HB 240-EXTEND BOARD OF CHIROPRACTIC EXAMINERS  3:26:48 PM CHAIR OLSON announced that the next order of business would be HOUSE BILL NO. 240, "An Act extending the termination date of the Board of Chiropractic Examiners; and providing for an effective date." 3:27:10 PM CRYSTAL KOENEMAN, Staff, Representative Lora Reinbold, Alaska State Legislature, on behalf of Representative Reinbold, sponsor, stated that HB 240 would extend the Board of Chiropractic Examiners (BCE). The auditors recommended that the BCE be extended for a full eight years until June 30, 2022 since the board has been effectively serving the public interest and effectively licensing and regulating the chiropractic community. She highlighted two recommendations the auditors made. First, the auditors indicated a prior audit recommendation should be implemented, such that the governor shall appoint board members in accordance with statute. One board member did not meet the statutory requirements at the time of the appointment, although the governor subsequently took the appropriate steps and removed the person from the board and reappointed another member. Second, the auditors recommended that the Division of Corporations, Business, and Professional Licensing (DCBPL) improve its investigative case management system. As previously mentioned the division has taken great strides in the past few years to improve the integrity of the aforementioned system and she anticipated the DCBPL's efforts would continue. 3:28:57 PM REPRESENTATIVE SADDLER referred to the fiscal note for the prior bill, HB 239, relating that the fiscal note for Board of Examiners in Optometry (BEO) was for $6.8 thousand. However the fiscal note for HB 240 lists $16.6 thousand for BCE's travel costs. He noted that the fiscal note narrative indicates that BCE's board members would attend an out-of-state conference. He asked for more details on the out-of-state conference since the fiscal notes don't seem to match up. MS. KOENEMAN answered that BCE board members attend out-of-state trainings and conferences to keep current with national practices and other state's laws pertaining to the practice or any trends. 3:30:09 PM REPRESENTATIVE SADDLER detailed that the Board of Examiners in Optometry (BEO) projected travel costs for two meetings a year at $6.8 thousand whereas this board would attend four meetings per year estimated at $16.6 thousand. He asked for further clarification since he did not think the out of state conference figures seemed comparable. 3:30:40 PM KRIS CURTIS, Legislative Auditor, Division of Legislative Audit, Legislative Agencies and Offices, stated that the division conducted a sunset audit dated June 6, 2013. The auditors recommended extending the termination date of the board for eight years, which is the maximum allowed in statute. The auditors concluded the BCE was operating in the public's interest since it monitors licensees and ensures that only qualified individuals practice. From fiscal year 2006 (FY 06) through FY 12, the board adopted, repealed, or revised 35 regulations The regulation changes focused primarily on updating continuing education, adding an oral examination to the licensing requirement, requiring criminal background checks for applicants, and clarifying and defining regulatory language. During that same time, FY 06-FY 12, the number of license applicants increased by 28 percent, from 226 in FY 06 to 290 in FY 12. As previously mentioned, the auditors recommended two changes regarding the appointment of board members: first, to the DCBPL's director, and second, to the Office of the Governor. In response to a question on the number of regulations the BCE addressed, Ms. Curtis answered that the auditors found 35 regulations were revised, repealed, or adopted during that time period. 3:32:57 PM REPRESENTATIVE SADDLER asked for specific purpose of the travel and whether the travel was for training to improve the chiropractic practice or for training members of a professional licensing board to improve board performance. MS. CURTIS answered that the audit addressed travel. She acknowledged that some boards have had difficulty in obtaining authority to use funding for out-of-state travel; however, of the five occupational sunset reviews the division conducted, this is the only one not permitted to travel. She referred to page 15 of the BCE's sunset audit for the BCE and said the auditors concluded the restrictions impeded the board's ability to operate as a board. Additionally, the audit concluded that BCE's board members were prohibited from travel due to DCBPL's budgetary restrictions. She said, "According to DCBPL management, restrictions on travel should be alleviated in FY 14 by an increase in the travel budget and the ability to receive third-party reimbursements for some board member travel." She explained that this means that in some cases travel is reimbursed since it is built into a portion of the fees paid to be part of the national organization. 3:34:24 PM REPRESENTATIVE SADDLER asked for clarification. He related his understanding that board members could not obtain permission from the division to attend out-of-state conferences. He asked whether the ultimate determination on how to spend the fees generated through licenses rests with the division and not the board. MS. CURTIS deferred to the division director; however, she recalled testimony at last year's hearings that some complaints were voiced about restrictions boards faced when using their budgets for out-of-state travel. Thus auditors included the complaint in scope of sunset audits conducted in 2013. She reiterated the BCE was the only board experiencing this specific problem. 3:35:10 PM REPRESENTATIVE JOSEPHSON asked for clarification on the process used for the 35 aforementioned regulations. He asked whether the regulations were initiated by the individual board members or if the BCE had absolute power to create regulations subject to the Lieutenant Governor's approval. MS. CURTIS deferred to the division director for details, noting regulation changes may vary from board to board. One criteria auditors use when evaluating boards during the sunset audit process is to measure to what degree the board addresses public interest and one way boards do this is by enacting regulations, she said. 3:36:42 PM REPRESENTATIVE JOSEPHSON clarified that he was interested in the "check" on the body itself. MS. CURTIS answered that all regulations go through a public process. 3:37:00 PM DON HABEGER, Director, Division of Corporations, Business, and Professional Licensing (DCBPL), Department of Commerce, Community, & Economic Development (DCCED), with respect to travel costs, answered that it varies by board. In some instances board members attend regional meetings. In other instances board members attend a national conference, often with a membership connected to it. The national organizations consist of a group of likeminded state regulators and board members across the nation meet periodically to regulate the specific practice. Typically, the national organization will review practice decisions, for example, it may consider something such as injectible nutrients. The national organization will come to consensus or it will agree to disagree on a variety of national practice decisions that affect the profession. Additionally, the national organization requests BCE's board members participate in a national group to design the national test and review questions as part of this process. He believed the Chair, Dr. Heston, has participated in this process. Referring to the fiscal note he said the $15.0 thousand represents the biennial costs for travel in FY 14. He clarified the division assesses board costs based on the prior two years. 3:39:49 PM MR. HABEGER turned to limited travel. As previously stated, this issue has been corrected. The DCBPL considered travel costs to be a budgetary appropriation issue. At the time he became director, the DCBPL had over $300,000 in travel appropriations; however, each board prepares an annual report and the total travel requests exceeded $550,000. Typically, he approved in-state travel, but out-of-state travel was based on available funding so the division denied some travel requests. He emphasized that in 2014, the legislature increased the division's travel budget by $200,000, which alleviated the problem. He explained that a number of national organizations encourage board members to attend conferences and reimburse the state through a third-party reimbursement for travel costs. Previously, the division lacked the mechanism to restore funds to each board; instead, travel reimbursements were deposited to the general fund; however, that was corrected last year, he said. 3:42:04 PM MR. HABEGER reviewed the promulgation of regulations process, such that the statutes under Title 8, give boards practice authority. The boards identify which statutes need to be repealed or amended to reflect any additional practices necessary, such as adopting or changing continuing education requirements. He didn't recall the specific BCE regulation changes; however the boards work with the regulations specialist, regulations are drafted, noticed - typically for 30- days - for public comment, the board reviews public comments and determines whether to adopt the regulations or make changes. He said the legislature receives copies of all proposed regulations. 3:43:42 PM REPRESENTATIVE SADDLER asked whether any developments have arisen for chiropractors that need to be addressed. MR. HABEGER offered his belief that chiropractors are considering allowing injectible nutrients, but he offered to confirm this. 3:44:27 PM JIM HESTON, D.C.; Chair, Board of Chiropractic Examiners (BCE), with respect to travel, commented that the BCE connects with fellow boards at conferences. The travel to conferences helps board members keep informed, proactively, on national trends and potential regulation changes. He recalled the BCE made about 10 regulation changes and was unsure of the 35 regulation changes previously mentioned. In response to a question, Dr. Heston said the number of regulations changed seemed high. 3:46:11 PM REPRESENTATIVE REINBOLD explained that the total number of regulations included repealing, amending, and revising regulations. DR. HESTON said, "I can believe that." CHAIR OLSON, after first determining no one else wished to testify, closed public testimony on HB 240. 3:46:52 PM REPRESENTATIVE SADDLER moved to report HB 240 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HB 240 was reported from the House Labor and Commerce Standing Committee.