HB 241-EXTEND BOARD OF MARITAL & FAMILY THERAPY  2:01:42 PM CHAIR DUNLEAVY reconvened the meeting and announced the consideration of HB 241. "An Act extending the termination date of the Board of Marital and Family Therapy; and providing for an effective date." 2:01:46 PM REPRESENTATIVE LORA REINBOLD, Alaska State Legislature Juneau, Alaska, sponsor of HB 241, stated that the bill extends the termination date of the Board of Marital and Family Therapy (BMFT) until June 30, 2018, based on an audit by the Division of Legislative Audit. The auditors reviewed the activities of this board and concluded that the board should be extended for just four years because the board did not fully address two audit recommendations in the previous sunset audit. The first recommendation was to develop a strategy to address the need for distance therapy and distance supervision. The second recommendation was for the Office of the Governor and the board to work together to fill vacant board seats in a timely manner. Working with the Department of Law, the board determined that any changes to the distance therapy and distance supervision must be made statutorily. The board is working on drafting legislation to address this issue and it will likely be introduced next legislative session. The Office of the Governor has also appointed members to the vacant seats. REPRESENTATIVE REINBOLD stated that the Division of Legislative Audit made a new recommendation for the Department of Commerce, Community and Economic Development (DCCED) to continue efforts to improve the investigative case management system integrity and confidentiality. She concluded that the Board of Marital and Family Therapy is operating in the best interest of the public to protect and promote public health, welfare, and the safety of Alaskans. 2:04:07 PM KRIS CURTIS, Legislative Auditor, Legislative Audit Division, Legislative Agencies and Offices, Juneau, Alaska, stated that the agency conducted an audit of the Board of Marital and Family Therapy and issued a report on June 2013. The primary objective was to determine whether the board is operating in the public's interest and should be extended. The audit concluded that the board is serving in the public's interest by effectively licensing and regulating marital and family therapists and recommended a four-year extension. This is less than the full eight-year statutory limit because the board has not fully addressed a prior recommendation to pursue regulatory changes necessary to protect the public's interest. She said that while the board had initiated one regulatory revision, it had not addressed the need for distance therapy and distance supervision. Because marital and family therapy services are not available in many areas of the state, distance therapy and distance supervision are viewed as solutions to the lack of local services. During the audit period the board extensively researched and discussed the topic, but made little progress moving beyond the discussion phase. The audit therefore recommends that the board develop a strategy to address the need for these services. The audit also includes two additional recommendations. The first is for the Office of the Governor and the board to work together to fill vacant board seats. The second recommendation is for the director of the Division of Corporations, Business and Professional Licensing to continue efforts to improve the case management system integrity and confidentiality. She noted that this same recommendation is being made in all the occupational board sunset audits for 2013. MS. CURTIS stated that the division's case management system was purchased with the expectation that it would be immediately functional but this has not been the case. DCCED has pursued improvements and the audit recommendation is to continue those improvements. SENATOR MICCICHE asked who reconciles findings and recommendations with completions because he is noticing a trend of repeat recommendations. MS CURTIS replied there is no statutory requirement to follow up, but the systematic problems related to division support will be monitored every year. SENATOR MICCICHE asked if there is a way to query findings. MS CURTIS replied there is no way to query the status of a recommendation, but the audit division has compiled the recommendations for the last two years by department. These are presented at finance meetings at the request of the chair and the division hopes to put them online so they're available to legislators. SENATOR MICCICHE asked if an audit has ever determined that a board or commission is no longer serving a public purpose. MS CURTIS answered yes. CHAIR DUNLEAVY asked the sponsor to speak to the fiscal note. REPRESENTATIVE REINBOLD deferred to her staff. CRYSTAL KIENEMAN, Staff, Representative Lora Reinbold, Alaska State Legislature, Juneau, Alaska, stated that the fiscal note shows an annual request of $7,700 for board meeting travel per diem. The analysis section was revised in the other body to show a summary of the board's true revenues and expenditures since they weren't included in the operating line expenditures. CHAIR DUNLEAVY asked her to review the analysis of revenues and expenditures. MS. KOENEMAN reported that the board revenues for FY12 and FY13 were $63,165 and the expenditures were $85,197, resulted in a biennium deficit of $22,030. However, the cumulative surplus is $112,195 because there was a carry forward balance from previous years. SENATOR MICCICHE questioned why a board surplus isn't zeroed out through the budgeting process. MS. KOENEMAN deferred the question. CHAIR DUNLEAVY asked Ms. Chambers to address the question. 2:12:01 PM SARA CHAMBERS, Director, Division of Corporations, Business and Professional Licensing, Department of Commerce, Community and Economic Development (DCCED), explained that boards and commissions within Title 8 are allowed to roll forward their surplus or deficit as a byproduct of the approximation of licensing fees required in AS 08.01.065. CHAIR DUNLEAVY opened and closed public testimony and solicited a motion. 2:13:38 PM SENATOR MICCICHE moved to report HB 242 from committee with individual recommendations and attached fiscal note(s). CHAIR DUNLEAVY announced that without objection HB 242 was reported from the Senate Labor & Commerce Standing Committee.