SENATE BILL NO. 16 "An Act relating to the Board of Registration for Architects, Engineers, and Land Surveyors and to the Department of Commerce, Community, and Economic Development." 9:10:10 AM MARGARET DOWLING, STAFF, SENATOR CATHY GIESSEL, explained SB 16. She referred to the Sponsor Statement. SB 16 revises statutes governing architects, engineers, and land surveyors in Alaska, designating a full-time investigator specifically for the State Board of Registration for Architects, Engineers, and Land Surveyors (AELS). The AELS Board's mission, as defined in statute, is to protect public health, safety and welfare by ensuring that those entering the practices of architecture, engineering, and land surveying meet minimum standards of competency, and maintain those standards during their practice, by requiring licensure to practice in the state. The Board enforces the licensure and competency requirements and responds to complaints brought by the public. Currently, the AELS Board shares one part-time investigator with six other boards that oversee a total of 18,095 licensees, of which 6,439 licensees are under the AELS Board. According to the board, because of the negative economic conditions in various parts of the United States, a significant number of corporations and individuals are relocating to Alaska and many are practicing without proper licensure or knowledge of applicable statutes and regulations. In 2012 alone, the AELS Board added 490 new licensees to its oversight. In addition to the already growing workload for the part-time AELS Board investigator, pressure on the investigator to spend time on the other six boards to which he is also assigned is increasing. The efficiency and effectiveness of the State's licensing investigation process is further reduced by only having a single shared investigator who must maintain knowledge of the various statutes and regulations of seven different boards. SB 16 also removes the constraint that examinations for licensure be written. With advancements in technology, examinations are moving to an electronic format which will further increase efficiency. SB 16 will better equip the AELS Board to maintain proper oversight of its licensees, thereby uphold the reputation and integrity of the disciplines within its purview, and ultimately ensure its ability to protect public health, safety, and welfare. Ms. Dowling explained the fiscal note. She stressed that regulatory boards must be self-supporting through licensing fees. She pointed out that the board had sufficient carry- forward program receipts to cover the initial cost. The new influx of revenue would be generated in November and December of 2013, as the license fees become due. She noted that, currently, the license fees were $125 for a two-year license. She remarked that the fee could be increased if needed, but stressed that an anticipated fee-increase would be minimal. Senator Dunleavy surmised that the fee would pay for the extra position. Ms. Dowling agreed, and stressed that the fee must pay for it. Senator Dunleavy wondered if the position would be eliminated, if the fees were not able to pay for the position. Ms. Dowling deferred to Mr. Habegar. DON HABEGAR, DIRECTOR, DIVISION OF CORPORATIONS, BUSINESS AND PROFESSIONAL LICENSING, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT (DCCED) (via teleconference), replied that there was a mechanism by statute whereby a board's revenue and expenses were annually reviewed. He added that every two years the professional licensing groups renewed their licenses. He stressed that the annual and biannual reviews allowed the division the ability to adjust fees according to statute; and could increase or decrease fees based on the equilibrium between revenues and expenses. Senator Dunleavy surmised that the license fees would pay for the new position. Mr. Habeger responded that the license fees would pay for the position. 9:16:30 AM Senator Dunleavy asked if the position would be eliminated, if the license fees were not available to cover the cost of the position. Mr. Habeger responded that the statute required the division to collect revenues that were approximately equal to the fee; however there may be less revenue, which would cause a fee adjustment to backfill unanticipated cost. He stressed that the fees were collected two years in advance of expenses. Senator Dunleavy remarked that he was interested in monitoring the growth of the operating budget. Senator Bishop wondered if the revenue adjustment requirement was written in statute or regulation. Mr. Habeger responded that the statute required DCCED to collect revenues that approximately equaled expenses, followed by adjusting the fees through the regulatory the process. He stated that there was an analysis; followed a presentation to the board; the board gives their approval or feedback; the regulatory package is released, and open to comments; resulting in adjustments or adoption. Senator Bishop noted an increase in the workload by 116 cases, and wondered if there were more fraud cases since the onset of the recession. Mr. Habeger replied that he was unsure of the types of cases in review, and deferred to a board member to reply to that inquiry. Senator Bishop agreed to receive a response at a later date. HARLEY HIGHTOWER, ARCHITECT, ANCHORAGE (via teleconference), explained that the board was very large and complex; and stressed that it was difficult for an investigator to keep current on all the statutes and regulations. He stated that he had been a practicing architect since 1974. He specifically stated that the registration fee was very reasonable. 9:21:05 AM COLIN MAYNARD, CIVIL ENGINEER, AELS BOARD, ANCHORAGE (via teleconference), testified in support of SB 16. He pointed out that there were currently 15 engineering licenses which included landscape architects and land surveyors. He explained that there were roughly 2.5 investigators for the board four years prior, but the investigators were now shared between six different boards. He stressed that there were so many cases, so the investigations were difficult to complete in a timely manner. He stressed that SB 16 would provide a more even investigation and enforcement of the licensing laws. He remarked that the fees fluctuate from year to year, and stressed that oil money was not used to support the board. JANET M. MATHESON, ARCHITECT, AMERICAN INSTITUTE OF ARCHITECTS, FAIRBANKS (via teleconference), testified in support of SB 16. She stressed that the bill provided a necessary change to enforce professional practice in the state for public safety reasons, because the geographic disparity of enforcement was currently difficult. She reiterated that the change would be funded by professional licensing fees. DALE NELSON, CIVIL ENGINEER, CHAIR OF ALASKA PROFESSIONAL DESIGN COUNCIL LEGISLATIVE COMMITTEE, PALMER (via teleconference), testified in support of SB 16. He explained that the Alaska Professional Design Council (APDC) represented many different types of licensed professions. He remarked that details of the bill had been published in the APDC newsletter, and presented to the APDC Legislative Committee. He stressed that APDC had received only positive responses to the proposals outlined in the bill. He stated that he had been a practicing civil engineer since 1973, and had personally experienced fluctuating licensing fees. 9:26:49 AM Senator Bishop wondered if the proposed position was an exempt position. Ms. Dowling deferred to Mr. Habeger responded that the position was not an exempt position. Vice-Chair Fairclough queried who would be responsible for the supervising responsibility of the secretary and the investigator. She noted that the line of command for the investigator was placed with the board, and wondered if the board would conduct an annual performance review. Mr. Habeger responded that there was administrative activity with human resource support and evaluations. He stressed that the division had the ability to discipline, but the board was focused on directing where investigations should occur in the state. Vice-Chair Fairclough stressed that the fiscal note reflected a range 18 position to conduct investigations into alleged violations, and would be directly responsible and accountable to the board. She wondered if the board would be responsible for performance reviews. Mr. Habeger replied that the board had an annual review process that was presented to the division, and was used as additional guidance. Vice-Chair Fairclough wondered if the secretary was a shared position. Mr. Habeger responded that the secretary position was dedicated to the board. Vice-Chair Fairclough surmised that there would be two dedicated positions. Mr. Habeger agreed that there would be two dedicated positions, if the bill were passed. 9:30:08 AM Vice-Chair Fairclough MOVED to REPORT SB 16 out of committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, it was so ordered. SB 16 was REPORTED out of committee with a "do pass" recommendation and with a new fiscal impact note from the Department of Commerce, Community and Economic Development.