Senate Labor and Commerce hears audits, testimony supporting extensions for three licensing boards

Senator Greg Bjorkman, chair of the Senate Labor and Commerce Committee, opened a Feb. 7 committee hearing in Juneau on Senate Bill 80, which would extend statutory sunset dates for three state licensing boards.

The committee heard a legislative audit and invited testimony from board chairs and industry representatives explaining why those boards should remain in place.

Legislative Auditor Chris Curtis told the committee that each board met the public-interest standard in the most recent audits and offered targeted recommendations. Curtis said the audit recommended a shorter extension for the Marijuana Control Board to allow time to review a recent Governor’s advisory task force report and a new licensing information system, while recommending longer extensions for the Board of Massage Therapists and the Big Game Commercial Services Board to provide regulatory stability.

“The Marijuana Control Board was operating in the public’s interest,” Chris Curtis said as she described findings and recommendations in the audit report. Curtis listed recommendations including better documentation of permit files, completion of the new licensing and enforcement information system, and consideration of requiring a majority of board members to approve regulation changes. The Department of Commerce, Community, and Economic Development (DCCED) commissioner concurred with the audit’s findings except for the recommendation on majority votes, and the marijuana board chair likewise objected to changing the voting threshold on regulation changes.

Board chairs and stakeholders described board functions and supported SB 80. Aneta Atwell, chair of the Board of Massage Therapists, summarized the board’s role in reviewing licensing and renewal issues, evaluating applications from out-of-state schools, and handling disciplinary matters. Aaron Bloomquist, chair of the Big Game Commercial Services Board, described licensing and regulatory work for guides and transporters and said the board had recovered from operating deficits to a surplus through fee and licensing actions. Sam Rohrer, president of the Alaska Professional Hunters Association, told the committee the association “strongly supports” extending the Big Game Commercial Services Board, saying the board provides oral testing and a public avenue to shape regulations that affect guides.

Sylvan Robb, director of the Division of Corporations, Business and Professional Licensing, described steps the division has taken in response to auditor recommendations, including reclassifying licensing positions, creating additional supervisory roles, and instituting regular training to improve oversight and documentation.

Committee members spoke in favor of respecting auditors’ recommendations. No formal vote on SB 80 was taken; Chair Bjorkman said the committee would set the bill aside for further consideration at a future meeting.

What the audit found and next steps

- Marijuana Control Board: audit recommended a short extension (audit text recommended a three-year extension) to allow review of major issues identified by a Governor’s advisory task force and to let auditors assess implementation of a new licensing information system; the board is a five-member panel that regulates cultivation, manufacture and sale of marijuana. The commissioner and the board chair agreed with most audit recommendations but opposed a statutory change requiring a majority vote to approve regulations.

- Board of Massage Therapists: audit recommended a six-year extension and made four improvement recommendations, including procedures to ensure licenses are not approved on outdated documentation and considering fee adjustments so licensing fees cover regulation costs; the board has five members.

- Big Game Commercial Services Board: audit recommended a six-year extension and two improvements, including oversight procedures to ensure licensing documentation is complete and a review of whether two private landholder seats remain necessary; the board reported 1,438 active licenses as of January 2023 and is composed of nine members.

The committee did not take final action and will revisit the bill at a later date.

Ending

Senator Bjorkman closed the SB 80 segment after committee questions and testimony, and the committee moved on to consider other bills on the agenda.