HOUSE BILL NO. 302 "An Act extending the termination date of the Board of Professional Counselors; and providing for an effective date." 9:05:02 AM ASHLEY STRAUCH, STAFF, REPRESENTATIVE ADAM WOOL, discussed the sponsor statement for HB 302 (copy on file): HB302 extends the sunset date for the Board of Professional Counselors to June 30, 2026. I encourage all the members to review the Legislative Audit summary and the full audit report. You will see that the Board has served the public's interest by effectively licensing and regulating professional counselors and certified counselor supervisors. From FY14 to FY16, the Board has had a 46% increase in new licenses, and has issued 190 new licenses and 73 supervisor certifications over that time. Additionally, the Board has worked to implement new tele-health regulations to guide the distance delivery of services for mental health occupations. The Board of Professional Counselors serves an important role in monitoring licenses and working to ensure that only qualified individuals practice in Alaska. The continuation of this Board is important to the ongoing improvement of the professional counselor occupation. 9:06:45 AM KRIS CURTIS, LEGISLATIVE AUDITOR, ALASKA DIVISION OF LEGISLATIVE AUDIT, discussed the document "A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Professional Counselors (board)" (copy on file). She stated that the purpose of a sunset audit was to determine whether a board or commission was serving the public's interest, and whether it should be extended. She stated that the report conclusions began on page 3. She stated that, overall, she found that the board was serving the public's interest, by effectively licensing and regulating professional counselors and counselor supervisors. She stated that it was found that the board monitored licensees, and worked to ensure that only qualified individuals practiced. Furthermore, it was found that the board actively developed and adopted regulations to improve the profession. She recommended the full, maximum eight-year extension. There were no recommendations as part of the audit. She remarked that there was some standard information within the report. She noted the scheduled licensing activity on page 5. She shared that, as of January 2017, there were 657 active licensees. She noted that it was a 46 percent increase, as compared to the prior 2009 sunset. She shared that page 6 showed a schedule of revenues and expenditures. The board had a surplus of $70,000 as of March 31. She stated that the board and management planned to decrease fees in FY 18 to address the surplus. The list of fees was on page 7. She noted that response to the audit began on page 19. She announced that the Office of the Governor (GOV), the department, and the board chair agreed that the board served the public's interest and should be extended to the maximum 8 years. Senator Micciche stated that he had heard the audit findings in another committee. He remarked that within the discussion, it was learned that the cost and time for the audit was not covered by the board. He felt that maybe the legislature should consider that the board cover the cost of the audit. Senator von Imhof referenced page 6 of the audit, in which there was a deficit in FY 13, FY 14, and FY 15. A fee structure change then occurred, so there was a surplus in FY 16 and FY 17. She noted that the fees would be decreased. She wondered whether there was a certain allowable surplus percentage, so there could possibly be a cushion to be absorbed over time. Ms. Curtis replied that statutes did not provide for that. She shared that the statutes outlined that license fees should cover the cost of regulation. She stated that there was a problem over the years of the allocation of indirect costs, but was corrected recently. She stressed that the statute did not provide flexibility or a cushion, but rather stated that fees should be set to cover the cost of regulation. 9:11:18 AM Co-Chair MacKinnon wondered whether the department had language suggestions to address the peaks and valleys in the boards to make it more sustainable to those who were paying fees to the state. SARA CHAMBERS, DEPUTY DIRECTOR, DIVISION OF CORPORATIONS, BUSINESS AND PROFESSIONAL LICENSING, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, addressed Senator von Imhof's question. She stated that the department had worked to examine how statute could be altered to provide more effective tools. She shared that there were struggles within the existing authority, but those had been corrected. She remarked that because the statute required the revenues to approximately equal the expenditures for the programs that had some expenditures that were impossible to anticipate. She shared that licensing fees paid for administrative costs, and also paid for all investigations and legal costs. She stressed that the licensee paid for those expenditures. Senator von Imhof announced that she would have a conversation about the issue at a later date. 9:16:55 AM Senator Micciche was concerned that boards and commissions did not become profit centers. He thought the matter was worthy of discussion. Senator Stevens asked if Ms. Chambers was hearing from licensees regarding the unfairness of fees going towards the activities of un Ms. Chambers answered in the affirmative. Co-Chair MacKinnon OPENED public testimony. DEBRA HAMILTON, CHAIR, BOARD OF PROFESSIONAL COUNSELORS, SOLDOTNA (via teleconference), stated that she was available for questions. Senator Micciche wondered whether the balance was fair in the licensing fees for her board. Ms. Hamilton replied that she was currently looking at that issue. She remarked that she joined the board at a time of deficit, had worked to reverse that deficit, and was currently in a surplus. She shared that there was some feedback regarding the licensure fee increases. Co-Chair MacKinnon CLOSED public testimony. 9:20:20 AM Vice-Chair Bishop commented that continued conversation would be worthy to address the concern over peaks and valleys. He remarked that it would be nice to find a solution. Senator Micciche thought people did not understand that boards and commissions were self-funded and self-regulated and did not use state funds. Co-Chair MacKinnon noted that there had been a fiscal not review with the Legislative Finance Division. She put on the record that the $21,100 was the cost of the board itself. Vice-Chair Bishop MOVED to report HB 302 out of Committee with individual recommendations and the accompanying fiscal note. There being NO OBJECTION, it was so ordered. HB 302 was REPORTED out of committee with a "do pass" recommendation and with one previously published fiscal impact note: FN 1(CED). 9:24:31 AM AT EASE 9:26:00 AM RECONVENED