Sunset

SUMMARY OF: Department of Commerce, Community, and Economic Development, Board of Massage Therapists   Purpose of the Report The audit was performed to determine if there is a continued need for the board and if its termination date should be extended. The board is set to sunset on June 30, 2024, and will have one year from that date to conclude its administrative operations. Report Conclusions Overall, the audit concluded that the board operated in the public’s interest by conducting its meetings in an effective manner; and actively amending regulations to address statutory changes, improve the licensing process, and enhance public safety. The audit also concluded that licenses were not consistently issued in compliance with state law, board related cases were not consistently investigated in a timely manner, continuing education audits were not completed, and licensing fees did not cover the cost of regulating the profession. In accordance with AS 08.03.010(c)(12), the board is scheduled to terminate on June 30, 2024. We recommend the legislature extend the board’s termination date six years, to June 30, 2030, which is two years less than the maximum allowed by statute. The reduced extension reflects the need for more routine oversight in recognition of the audit findings. Findings and Recommendations The Division of Corporations, Business and Professional Licensing’s (DCBPL) director should develop a control procedure to help ensure licenses are not approved based on outdated documentation. DCCED’s commissioner should work with policymakers to improve the recruitment and retention of investigators. DCCED’s commissioner should work with policymakers to improve the recruitment and retention of DCBPL licensing staff. DCBPL’s director, in consultation with the board, should consider increasing licensing …

SUMMARY OF: Department of Health, Alaska Commission on Aging   Purpose of the Report The audit was performed to determine if there is a continued need for the commission and if its termination date should be extended. The commission is set to sunset on June 30, 2024, and will have one year from that date to conclude its administrative operations. Report Conclusions Overall, the audit concluded that the commission served the public’s interest by helping older Alaskans lead dignified, independent, and useful lives through advocacy, outreach, and education. Furthermore, the commission fulfilled the federal requirement that each state establish a council to advise the state on aging matters, including developing and administering a state plan. In accordance with AS 44.66.010(a)(4), the commission is scheduled to terminate on June 30, 2024. We recommend the legislature extend the commission’s termination date eight years, to June 30, 2032. Findings and Recommendations The commission’s chair should ensure the annual analysis and evaluation report is complete and provided to the legislature and …

SUMMARY OF: Department of Commerce, Community, and Economic Development, Marijuana Control Board   Purpose of the Report The audit was performed to determine if there is a continued need for the board and whether its termination date should be extended. The board is set to sunset on June 30, 2024, and will have one year from that date to conclude its administrative operations. Report Conclusions Overall, the audit concluded that the Marijuana Control Board (MCB or board) served the public’s interest by holding its meetings in compliance with state law, actively amending regulations, and conducting investigations in a timely manner. The audit also concluded that licenses were issued in accordance with statutes and regulations; however, applications were not processed in a timely manner. Additionally, Alcohol and Marijuana Control Office (AMCO) staff did not maintain adequate documentation to show compliance with marijuana handler permit laws. The audit identified one instance that regulations were approved with two “yay” votes. Although approving regulations with only two votes of the five-member board was permissible under state law, the audit questions whether the action was in the public’s best interests. Additionally, the audit noted deficiencies in the tracking of enforcement activities by AMCO staff. Further, the audit reports that, as of April 2023, 59 delinquent marijuana taxpayers collectively owed $3.1 million in taxes. As part of the audit, a survey was sent to 319 marijuana licensees; 112 fully responded (response rate of 35 percent). Sixty-three percent of respondents rated the MCB’s overall effectiveness in serving the public’s interest as “effective” or “very effective”. In accordance with AS 44.66.010(a)(13), the MCB is scheduled to terminate on June 30, 2024. We recommend the legislature extend the board’s termination date three years, to June 30, 2027, which is significantly less than the eight-year maximum allowed in statute. The three-year extension recommendation is made in recognition that a report issued by the governor’s Advisory Task Force on Recreational Marijuana may lead to significant changes to MCB and AMCO duties, and a new information system, which is expected to be implemented by the end of 2023, would significantly change MCB’s licensing and enforcement processes. A three-year extension would allow for a timely evaluation of the substantial changes. Further, a three-year extension would align the MCB’s next sunset review with the Alcoholic Beverage Control Board’s sunset review and allow a comprehensive review of AMCO’s support to both boards. Findings and Recommendations AMCO’s director should establish procedures to ensure handler permit documentation is properly maintained. The MCB and AMCO’s director should continue to implement a new license and enforcement information system. The legislature should consider requiring regulation changes be approved by the majority of MCB …

SUMMARY OF: Department of Commerce, Community, and Economic Development, Big Game Commercial Services Board   Purpose of the Report The audit was performed to determine if there is a continued need for the board and if its termination date should be extended. The board is set to sunset on June 30, 2024, and will have one year from that date to conclude its administrative operations. Report Conclusions Overall, the audit concludes that the board operated in the public’s interest by conducting its meetings in an effective manner, supporting statutory changes when deemed necessary, and actively amending regulations. The audit also concludes that board licenses were not consistently supported by adequate documentation and two private landholder board seats were vacant or had absences for extended periods. In accordance with AS 08.03.010(c)(9), the board is scheduled to terminate on June 30, 2024. We recommend that the legislature extend the board’s termination date six years to June 30, 2030, which is two years less than the eight-year statutory maximum. The reduced extension recommendation reflects the need for more timely oversight in recognition of the audit findings. Findings and Recommendations The Division of Corporations, Business and Professional Licensing’s director should improve oversight procedures to ensure required licensure documentation is obtained and reviewed. The board should consider whether two private landholder board seats continue to be necessary for effective …

SUMMARY OF: Department of Commerce, Community, and Economic Development, Board of Certified Direct-Entry Midwives   Purpose of the Report The audit was performed to determine if there is a continued need for the board and if its termination date should be extended. The board is set to sunset on June 30, 2023, and will have one year from that date to conclude its administrative operations. Report Conclusions Overall, the audit concludes that the board operated in the public’s interest by conducting its meetings in an effective manner, by supporting statutory changes when deemed necessary, and by actively amending regulations. The audit also concludes that the board and Division of Corporations, Business and Professional Licensing (DCBPL) staff did not consistently certify midwives in accordance with statutes and regulations. Further, an investigation that concerned a threat to public safety was not addressed by DCBPL investigators in an efficient manner. In accordance with AS 08.03.010(c)(8), the board is scheduled to terminate on June 30, 2023. We recommend the legislature extend the board’s termination date four years, to June 30, 2027, which is half of the eight-year maximum allowed in statute. The reduced extension reflects the need for more timely oversight in recognition of the audit findings and in recognition that the board’s draft regulations may significantly change its licensing function. Findings and Recommendations DCCED’s commissioner should work with policymakers to improve the recruitment and retention of investigators. DCCED’s commissioner should work with policymakers to improve the recruitment and retention of licensing staff, and board members should adequately review applications prior to approval. DCBPL’s director should work with the board to ensure the online licensing application is sufficient to monitor compliance with continuing education hours and that accurate regulatory references are included in the application. The Office of the Governor, Boards and Commissions director should work with the board to identify potential applications to fill board vacancies in a timely …

SUMMARY OF: Department of Commerce, Community, and Economic Development, State Medical Board   Purpose of the Report The audit was performed to determine if there is a continued need for the board and if its termination date should be extended. The board is set to sunset on June 30, 2023, and will have one year from that date to conclude its administrative operations. Report Conclusions The audit concluded that the board developed and adopted regulations to protect the public, improve the licensing process, and expand access to care during the coronavirus disease 2019 (COVID-19) public health emergency. Further, the board served the public’s interest by effectively licensing physicians, osteopaths, and podiatrists; however, emergency courtesy licenses for physician assistants were not issued in accordance with state law. The board’s workload significantly increased during the audit period due to the COVID-19 pandemic. The board met frequently, sometimes weekly, to consider pandemic-related regulations. The number of licensing applications increased dramatically as a result of practitioners traveling to Alaska to help meet the need for health care services and out-of-state practitioners providing services via technology (commonly referred to as telehealth). The dramatic increase in workload occurred right after all board members were replaced by the governor. Board turnover and vacancies were common during the audit period. In accordance with AS 08.03.010(c)(13), the board is scheduled to terminate on June 30, 2023. We recommend that the legislature extend the board’s termination date to June 30, 2031, which is the maximum extension allowed per statute. Findings and Recommendations The board’s executive administrator should ensure that all board meetings are adequately public noticed. The board should ensure that emergency regulations comply with …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Pharmacy   Why DLA Performed This Audit The audit was performed to determine if there is a continued need for the board and if its termination date should be extended. The board is set to sunset on June 30, 2022, and will have one year from that date to conclude its administrative operations. Report Conclusions Overall, the audit concluded that the board served the public’s interest by effectively conducting its meetings and actively amending regulations; however, improvements over the board’s licensing function are needed. Further, the audit concluded that Division of Corporations, Business and Professional Licensing (DCBPL) staff investigated complaints unrelated to the controlled substance prescription database (CSPD) in a timely manner and activity worked toward implementing new CSPD requirements. At the time of the audit, occupational boards were not effectively monitoring or enforcing CSPD requirements. Additionally, DCBPL licensing staff were not consistently entering the existence of a Drug Enforcement Administration (DEA) registration number into DCBPL’s licensing database, which prevented the licensing database from being used to monitor compliance with CSPD registration requirements. In accordance with AS 08.03.010(c)(16), the board is scheduled to terminate on June 30, 2022. We recommend that the legislature extend the board’s termination date six years, to June 30, 2028, which is less than the eight-year maximum allowed in statute. The reduced extension reflects the need for more timely oversight of the board’s evolving role in combating the public health opioid crisis. Findings and Recommendations The board chair and DCBPL’s director should improve procedures and training to ensure applicants meet requirements prior to licensure. The board should adopt regulations for renewing outsourcing facilities and third-party logistics provider licenses. Applicable occupational boards and DCBPL’s director should continue to coordinate efforts to improve the monitoring and enforcement of CSPD requirements. DCCED’s commissioner should allocate sufficient resources to ensure licensees holding a DEA registration number are consistently recorded in DCBPL’s licensing database. DCCED’s commissioner should allocate sufficient resources to ensure the CSPD requirements are …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Regulatory Commission of Alaska   Why DLA Performed This Audit The audit determines whether there is a need for the council’s continued existence and whether the council’s termination date should be extended. The council is set to terminate June 30, 2022, and will have one year from that date to conclude its administrative operations. Report Conclusions Overall, the audit concluded RCA operated in an effective manner and served the public’s interest by: assessing the capabilities of utility and pipeline companies to safely serve the public; evaluating tariffs and charges made by regulated entities; verifying the pass-through charges to consumers from electric and natural gas utilities; adjudicating disputes between ratepayers and regulated entities; providing consumer protection services; and performing financial reviews of utilities for the State’s power cost equalization program. In accordance with AS 44.66.010(a)(3), RCA is scheduled to terminate on June 30, 2022. We recommend the legislature extend the termination date eight years to June 30, 2030. Findings and Recommendations The RCA chair should clarify regulations concerning the cancelation of scheduled public …

SUMMARY OF: A Sunset Review of the Department of Public Safety, Council on Domestic Violence and Sexual Assault   Why DLA Performed This Audit The audit determines whether there is a need for the council’s continued existence and whether the council’s termination date should be extended. The council is set to terminate June 30, 2022, and will have one year from that date to conclude its administrative operations. Report Conclusions The audit concluded that the council generally operated in the public’s interest by funding and monitoring Alaskan domestic violence and sexual assault programs and prevention activities. The council served as the central coordinator for related services throughout the state, conducted meetings in accordance with council bylaws, effectively met most statutory duties, and did not duplicate the efforts of other entities. The audit also concluded that the council should improve document retention, access to the Battering Intervention Program database, and timeliness of annual report submission and regulation changes. In accordance with AS 44.66.010(a)(5), the council is scheduled to terminate June 30, 2022. We recommend the legislature extend the council’s termination date six years, to June 30, 2028. Findings and Recommendations The executive director should allocate resources to ensure the annual report is submitted in accordance with council bylaws. The executive director should improve training to help ensure document retention procedures are followed. The executive director should work with the Department of Law to expedite regulatory updates. The executive director should continue to work with the Department of Public Safety and the Office of Information Technology to improve access to the Battering Intervention Program …

SUMMARY OF: A Sunset Review and a Special Review of the Department of Commerce, Community, and Economic Development, Alcoholic Beverage Control Board   Why DLA Performed This Audit The purpose of the audit was to determine if there is a need for the board’s continued existence and whether its termination date should be extended. In addition, the audit examined the board’s license process and identified the cause of delays. The board is scheduled to sunset June 30, 2022, and will have one year from that date to conclude its administrative operations. Report Conclusions Overall, the audit found that board meetings were conducted effectively, regulations were adopted to implement statutory changes, and investigations were conducted in a timely manner. The audit also concluded that the Alcohol and Marijuana Control Office’s (AMCO) operations were impeded by the lack of an automated application process and significant vacancies. Further, deficiencies in controls over processing licensee fee refunds were identified. A review of the board’s license process identified that 76 percent of new license applications and 85 percent of transfer applications received during FY 19 and FY 20 were issued within six months. A backlog of renewal applications caused by unfilled vacancies led AMCO staff to issue approximately 300 temporary licenses in February 2021, which allowed licensees to continue operating pending application review. The audit identified the following opportunities for gaining licensing efficiencies: 1. Improving the completeness and accuracy of initial applications. 2. Reducing delays associated with waiting for compliance information. 3. Issuing licenses timely once all information has been received. Automating the application process and filling vacancies in a timely manner are key to improving efficiency. In accordance with AS 44.66.010(a)(1), the board is scheduled to terminate on June 30, 2022. We recommend the legislature extend the board’s termination date to June 30, 2026, which is four years less than the maximum allowed in statute. The reduced extension reflects the need for more timely oversight to evaluate the board’s progress in addressing licensing inefficiencies and filling vacancies. Findings and Recommendations The DCCED commissioner should ensure AMCO staff vacancies are filled in a timely manner and the AMCO director should implement written licensing procedures. The board should significantly enhance or replace its licensing database and automate the application process where possible. The board and AMCO director should strengthen procedures for entering restricted purchasers in the statewide database of written orders. The board and AMCO director should implement procedures to ensure municipalities receiving funds of biennial license fees are actively enforcing alcoholic beverage laws. The AMCO director should improve procedures and fill vacancies in a timely manner to ensure refunds to municipalities are appropriately …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Chiropractic Examiners   Why DLA Performed This Audit The audit’s purpose was to determine if there is a need for the board’s continued existence and whether its termination date should be extended. The board is set to sunset June 30, 2022, and will have one year from that date to conclude its administrative operations. Report Conclusions Overall, the audit concluded that the board served the public’s interest by conducting meetings in accordance with State laws, amending certain regulations to improve the chiropractic profession, and effectively licensing and regulating chiropractic physicians. Additionally, the audit found one board member did not meet statutory requirements for appointment and additional resources were needed to investigate cases in a timely manner. In accordance with AS 08.03.010(c)(5), the board is scheduled to terminate on June 30, 2022. We recommend that the legislature extend the board’s termination date five years to June 30, 2027, which is less than the eight-year maximum allowed in statute. The reduced extension is due to an issue identified during the audit that may impact the board’s ability to protect the public. The details of the issue are not included in this report to preserve the confidentiality of an ongoing investigation. The reduced extension reflects the need for continued oversight. Findings and Recommendations The governor should make board appointments in compliance with statutory requirements. The Division of Corporations, Business and Professional Licensing’s director should allocate sufficient resources to ensure cases are addressed in a timely …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Examiners in Optometry   Why DLA Performed This Audit The audit was performed to determine if there is a continued need for the board and if its termination date should be extended. The board is set to sunset on June 30, 2022, and will have one year from that date to conclude its administrative operations. Report Conclusions Overall, the audit concluded, with certain exceptions, that board operations were conducted in the public’s interest. The board conducted its meetings in compliance with state laws, effectively licensed optometrists, and actively amended regulations to address statutory changes and improve the licensing process. The Division of Corporations, Business and Professional Licensing (DCBPL) staff failed to operate in the public’s interest by not consistently recording licensees with federal Drug Enforcement Administration (DEA) registration numbers in the licensing database, not ensuring continuing education audits were conducted timely, and not monitoring licensees’ compliance with requirements for continuing education in pain management and opioid use and addiction. In accordance with AS 08.03.010(c)(15), the board is scheduled to terminate on June 30, 2022. We recommend the legislature extend the board’s termination date to June 30, 2028, which is two years less than the maximum allowed in statute. The reduced extension reflects the need for more routine oversight in recognition of audit findings. Findings and Recommendations DCBPL’s director should dedicate resources to ensure licensees holding a DEA number are consistently recorded in the licensing database. The board chair and DCBPL’s director should change the license renewal form to allow the board to monitor compliance with continuing education requirements. DCBPL’s director should ensure adequate resources are available to perform continuing education …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, & Economic Development, State Physical Therapy Board & Occupational Therapy Board   Purpose of the Report The audit was performed to determine if there is a continued need for the board and if its termination date should be extended. The board is set to sunset on June 30, 2022, and will have one year from that date to conclude it’s operations.     Report Conclusions Overall, the audit concludes that the board served the public’s interest by conducting meetings in accordance with state laws; amending certain regulations to improve the professions of physical therapy and occupational therapy; and effectively licensing and regulating physical therapists, physical therapy assistants, occupational therapists, and occupational therapy assistants. In accordance with AS 08.03.010(c)(17), the board is scheduled to terminate on June 30, 2022. We recommend that the legislature extend the board’s termination date eight years to June 30, 2030.   Findings and Recommendations The audit makes no formal recommendations. …

SUMMARY OF: A Sunset Review of the Department of Natural Resources, Citizens’ Advisory Commission on Federal Areas Why DLA Performed This Audit The audit determines whether there is a need for the commission’s continued existence and whether its termination date should be extended. The commission is set to terminate June 30, 2021, and will have one year from that date to conclude its administrative operations. Report Conclusions The audit concluded that, from the date of the prior audit in February 2015 through the time CACFA was defunded in June 2017, the commission operated effectively and did not significantly duplicate the efforts of other entities. During this period, the commission actively monitored the effects of federal regulation and management decisions in accordance with statutory duties. The audit also concluded that there is a continuing publicneed for the commission. In accordance with AS 44.66.010(a)(10), the commission is scheduled to terminate June 30, 2021. We recommend the legislature extend the commission’s termination date eight years, to June 30, 2029. Findings and Recommendations The audit makes no …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Public Accountancy Why DLA Performed This Audit The audit’s purpose was to determine if there is a need for the board’s continued existence and whether its termination date should be extended. The board is set to sunset June 30, 2021, and will have one year from that date to conclude its administrative operations. Report Conclusions The audit concludes that the board served the public’s interest by conducting meetings in accordance with state laws, amending certain regulations to improve the public accountancy occupation, and effectively licensing and regulating certified public accountants and partnerships/corporations engaged in the practice of public accountancy. Additionally, the audit found board operations were impacted by travel limitations and improvements to the board’s investigative process are needed to limit periods of inactivity. In accordance with AS 08.03.010(c)(1), the board is scheduled to terminate on June 30, 2021. We recommend that the legislature extend the board’s termination date eight years to June 30, 2029. Findings and Recommendations The Division of Corporations, Business and Professional Licensing’s chief investigator should ensure investigations are completed …

SUMMARY OF: A Sunset Review of the Alaska Court System, Board of Governors of the Alaska Bar Association Why DLA Performed This Audit The audit determines whether there is a need for the board’s continued existence and whether the board’s termination date should be extended. The board is set to terminate on June 30, 2021, and will have one year from that date to conclude its administrative operations. Report Conclusions The audit concludes that the board served the public’s interest by effectively admitting qualified members to the Bar and investigating complaints made against Bar members. The audit also found the mandatory three hours of continuing legal education required of Bar members was far below the standard of 12 hours required by 37 other states. (See Recommendation 3) Further, the audit identified the need for administrative improvements. (See Recommendations 1 and 2) In accordance with AS 08.30.010(c)(2), the board is scheduled to terminate June 30, 2021. We recommend the legislature extend the board’s termination date eight years, to June 30, 2029. Findings and Recommendations The executive director should encourage public participation at board meetings. The board should improve internal controls over the Bar’s online admissions system and case management database. The board should recommend an increase in mandatory continuing legal education for …

SUMMARY OF: A Sunset Review of the Office of the Governor, Alaska Criminal Justice Commission Purpose of the Report The audit was performed to determine if there is a continued need for the commission and whether its termination date should be extended. The commission is set to sunset June 30, 2021, and will have one year from that date to conclude its administrative operations. Report Conclusions Overall, the audit concluded the commission met its statutory responsibilities by analyzing the effects of sentencing laws and criminal justice practices on the criminal justice system, and recommending improvements. Additionally, the commission conducted specific studies and reported results, as required by law. The commission was effective as an advisory agency from 2015 through 2017 and its recommendations served as the basis for comprehensive criminal justice reform passed in 2016 (SB 91). Further, its recommendations helped policy makers amend SB 91. However, beginning in 2018, criminal justice policy decisions were not rooted in commission recommendations and the commission’s effectiveness waned. As of April 2020, the commission no longer routinely recommends improvements; however, it continues to analyze criminal justice data and evaluate the impact of commission recommendations and other changes on the criminal justice system. As required by statutes, several agencies submit data to the commission. The data is reviewed by commission staff, commission members, and/or other agencies under an agreement with the commission. In accordance with AS 44.66.010(a)(12), the commission is scheduled to terminate on June 30, 2021. We do not recommend extending the commission’s termination date. Rather than extend the commission in its current form, the need for and expectations of a criminal justice advisory commission should be reevaluated. Although we recommend sunsetting the commission, we do not recommend terminating its data collection and analysis functions. Objective evidence regarding the effectiveness of the criminal justice system and laws governing the system are critical to future policy decisions. Legislation will be required to maintain the commission’s data collection and analysis functions if the commission sunsets. Findings and Recommendations The Alaska Judicial Council’s executive director should improve procedures to ensure commission meetings are properly publicly noticed and …

SUMMARY OF: A Sunset Review of the Department of Education and Early Development, and the Department of Health and Social Services, Special Education Service Agency Why DLA Performed This Audit The audit was performed to determine if there is a continued need for SESA and whether its termination date should be extended. The agency is set to sunset June 30, 2021, and will have one year from that date to conclude its administrative operations. Report Conclusions Overall, the audit concludes the Special Education Service Agency (SESA) served the public’s interest by assisting school districts in providing students affected by low incidence disabilities (LID) an education to meet the children’s unique needs; providing opportunities to enhance teachers’ and paraprofessionals’ capabilities; and providing LID and special education resources. As part of this audit, a survey was sent to the 51 school district special education directors served by SESA. Thirty district directors responded (59 percent response rate). In general, survey respondents viewed SESA services, staff availability, and expertise favorably. Survey questions and responses are included as Appendix C of this report. In accordance with AS 44.66.010(a)(6), SESA is scheduled to terminate on June 30, 2021. We recommend the legislature extend SESA’s termination date to June 30, 2029, which is the eight year maximum allowed per statute. Findings and Recommendations SESA’s executive director should implement written procedures to ensure reclassification of a student’s referred disability is adequately supported and communicated to school district …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Certified Direct-Entry Midwives Why DLA Performed This Audit The audit was performed to determine if there is a continued need for the board and if its termination date should be extended. The board is set to sunset on June 30, 2021, and will have one year from that date to conclude its operations. Report Conclusions Overall, the audit concluded that the board served the public’s interest by conducting meetings in accordance with state laws and effectively certifying midwives. The board adopted regulatory changes to improve the profession, but failed to pursue statutory changes due to concerns over related costs. Additionally, the audit found the peer review process was not effectively monitored by the board and improvements were needed over the Division of Corporations, Business and Professional Licensing’s (DCBPL) investigative process. In accordance with AS 08.03.010(c)(8), the board is scheduled to terminate on June 30, 2021. We recommend the legislature extend the board’s termination date two years, to June 30, 2023, which is significantly less than the eight-year maximum allowed in statute. The reduced extension is due to an issue identified during the audit that may impact the board’s ability to protect the public and the board’s reluctance to recommend statutory changes in the public’s best interest. The details of the issue are not included in this report to preserve the confidentiality of an ongoing investigation. The reduced extension reflects the need for continued oversight. Findings and Recommendations The board should recommend statutory changes that benefit the public. DCBPL’s chief investigator should ensure investigations are completed timely. The board should improve oversight of the peer review …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Big Game Commercial Services Board Why DLA Performed This Audit The audit’s purpose was to determine if there is a need for the council’s continued existence and whether its termination date should be extended. The council is set to sunset June 30, 2019, and will have one year from that date to conclude its administrative operations. Report Conclusions The audit concluded that the board served the public’s interest by conducting meetings in accordance with applicable laws, amending regulations to improve occupations under the board’s purview, and supporting changes by the Department of Law to improve the timeliness of the disciplinary process. Additionally, the board worked to eliminate the over $1 million deficit reported in the prior 2015 sunset audit. The audit also concluded that board licenses were not consistently supported by adequate documentation, a high number of investigations had unjustified periods of inactivity, and three board positions were vacant for an extended period. In accordance with AS 08.03.010(c)(9), the board is scheduled to terminate on June 30, 2019. We recommend that the legislature extend the board’s termination to June 30, 2025, which is two years less than the eight year maximum allowed for in statute. The reduced extension is mainly due to DCBPL staff failing to consistently issue licenses in accordance with laws and failing to conduct investigations in a timely manner. Findings and Recommendations The Division of Corporations, Business, and Professional Licensing’s (DCBPL) director should improve management oversight procedures to ensure required documentation is obtained, reviewed, and retained to support licensure. DCBPL’s chief investigator should increase oversight to improve the timeliness of investigations. The Office of the Governor, Boards and Commissions director should work with the board to identify potential applicants in a timely …

SUMMARY OF: A Sunset Review of the Department of Corrections, Board of Parole Why DLA Performed This Audit This audit determines whether there is a need for the board’s continued existence and whether the board’s termination date should be extended. The board is set to terminate June 30, 2020, and will have one year from that date to conclude its administrative operations. Report Conclusions The audit concluded that the board responded in an effective and efficient manner to significant changes in parole laws. During the audit period, the board conducted its meetings, made parole decisions, set parole conditions, and held revocation hearings in accordance with state law. The audit also concluded that administrative improvements are needed to ensure regulations are accurate and up to date, and all revocations are performed within statutory timelines. Additionally, the audit found that technological improvements may improve board operations. In accordance with AS 44.66.010(a)(2), the board is scheduled to terminate June 30, 2020. We recommend the legislature extend the board’s termination date five years to June 30, 2025, which is three years less than the eight year maximum allowed for in statute. The reduced extension is mainly in acknowledgment of recent changes to the board’s statutes as well as anticipated changes and the need for continued oversight. Findings and Recommendations The board’s executive director should improve procedures to ensure final revocation hearings are performed timely. The board’s executive director should work with the Department of Corrections’ commissioner to improve the quality of telephonic hearings. The board’s executive director should take steps to ensure regulations are properly …

SUMMARY OF: A Sunset Review of the Department of Natural Resources, Alaska Seismic Hazards Safety Commission Why DLA Performed This Audit The audit’s purpose was to determine if there is a need for the commission’s continued existence and whether its termination date should be extended. The commission is set to sunset June 30, 2020, and will have one year from that date to conclude its operations. Report Conclusions The audit found that there continues to be a public policy need for the commission’s existence. The commission brings together volunteer experts in earthquake-related fields (i.e. engineering and geology) and members of key government agencies to provide advice to policy makers on disaster preparedness and seismic hazard mitigation. Its activities during the audit period included establishing mitigation priorities, issuing recommendations to state agencies, providing advice to local governments and the governor, and helping school districts secure federal grant funding to assess the vulnerability of older buildings to significant structural damage during an earthquake. The commission also helped coordinate classes to train individuals on how to assess buildings and structures in the aftermath of a significant seismic event. One of the classes was held in September 2018, just a few months before southcentral Alaska experienced a magnitude 7.0 on-land earthquake. The audit also concluded that not all commission meetings were adequately public noticed and the commission’s strategic plan should be updated to incorporate the knowledge gained through recent seismic events. (Recommendations 1 and 2) In accordance with AS 44.66.010(a)(8) the commission is scheduled to terminate on June 30, 2020. We recommend that the legislature extend the commission’s termination date to June 30, 2028. Findings and Recommendations The commission’s chair should ensure procedures are implemented to publish meeting notices timely and accurately. The commission’s chair should update its strategic plan to reflect current goals and priorities based on …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, State Medical Board Why DLA Performed This Audit The audit was performed to determine if there is a continued need for the board and whether its termination date should be extended. The board is set to sunset June 30, 2020, and will have one year from that date to conclude its administrative operations. Report Conclusions The audit concluded the board served the public’s interest by effectively licensing physicians, osteopaths, podiatrists, physician assistants, and paramedics. The board monitored licensees and worked to ensure only qualified individuals practiced in Alaska. Furthermore, the board developed and adopted certain regulatory changes to protect the public, improve the licensing process, and improve the delivery of services. The audit also concluded the board did not serve the public interest by inconsistently reporting board license actions to the Federation of State Medical Boards (FSMB). In addition, the board did not adopt regulations to require licensees register in the controlled substance prescription database and did not adequately monitor licensees to ensure those with a DEA number registered with the controlled substance prescription database. In accordance with AS 08.03.010(c)(13), the board is scheduled to terminate on June 30, 2020. We recommend the legislature extend the board’s termination date to June 30, 2025, which is three years less than the eight year maximum allowed per statute. The reduced extension is mainly due to the failure of the board to consistently report license actions to the FSMB, adopt regulations governing registration in the controlled substance prescription database, and monitor compliance with the registration requirement. Findings and Recommendations The board should adopt regulations to provide guidance for registering with the controlled substance prescription database. The board should develop procedures to ensure licensees with a Drug Enforcement Administration (DEA) number register in the controlled substance prescription database. The board chair should work with DCCED’s Division of Corporations, Business, and Professional Licensing’s director to establish and implement procedures to ensure the board reports disciplinary actions in accordance with state …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Alaska Tourism Marketing Board Why DLA Performed This Audit The purpose of the audit was to determine if there is a need for the board’s continued existence and whether its termination date should be extended. The board is set to sunset June 30, 2018, and will have one year from that date to conclude its administrative operations. Report Conclusions The audit concludes the board operated in the public’s interest by cooperating with DCCED to plan and execute a destination tourism marketing campaign and making recommendations regarding tourism marketing and development. Additionally, as directed by the legislature, the board worked with the Alaska Travel Industry Association to develop a plan to phase out reliance on unrestricted general funds. Although the board served the public’s interest during the audit period, the board’s advice to DCCED regarding tourism marketing and development is no longer needed as responsibility for those activities has shifted to industry. In accordance with AS 44.66.010(a)(11), the board is scheduled to terminate on June 30, 2018. We do not recommend extending the board’s termination date. Findings and Recommendations There were no recommendations as part of the sunset …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Social Work Examiners Why DLA Performed This Audit The purpose of this audit was to determine if there is a need for the board’s continued existence and whether its termination date should be extended. The board is set to sunset June 30, 2018, and will have one year from that date to conclude its administrative operations. Report Conclusions The audit concluded that the board operated in the public’s interest by effectively licensing and regulating social workers. Board meetings were conducted in compliance with law, investigations were generally processed timely, and the board issued or changed regulations to improve the profession. In accordance with AS 08.03.010(c)(21), the board is scheduled to terminate on June 30, 2018. We recommend that the legislature extend the board’s termination to June 30, 2026. Findings and Recommendations The Division of Corporations, Business, and Professional Licensing’s director should improve procedures to ensure board required documentation is obtained prior to licensure.  The Office of the Governor, Boards and Commissions director should work with the board to identify potential applicants for the board’s vacant clinical social worker …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Alcoholic Beverage Control Board Why DLA Performed This Audit The purpose of the audit was to determine if there is a need for the board’s continued existence and whether its termination date should be extended. The board is set to sunset June 30, 2018, and will have one year from that date to conclude its administrative operations. Report Conclusions In all areas except licensing, the audit found the board was operating in the public’s interest. Meetings were conducted effectively, investigations were processed timely, and the board developed and adopted regulations necessary to implement statutes. The audit concluded the board should improve its procedures for issuing renewals, recreational site licenses, and beverage dispensary licenses that encourage tourism. Testing found these licenses were not consistently issued in accordance with statutes. Additionally, operational improvements are needed in enforcing laws, monitoring board-related local law enforcement activity, and processing refunds to municipalities. In accordance with AS 44.66.010(a)(1), the board is scheduled to terminate on June 30, 2018. We recommend the legislature extend the board’s termination date to June 30, 2022. Findings and Recommendations The authority to renew licenses should be limited to the board. The board should issue recreational site licenses in accordance with statutory requirements.  The board should issue beverage dispensary licenses in accordance with statutory requirements.  The board, AMCO director, and enforcement supervisor should work together to formally establish an enforcement plan to direct AMCO’s limited enforcement resources.  The board and AMCO director should implement a process to monitor and track complaints to ensure they are assessed for follow up action and investigated in a timely manner. The board and AMCO director should develop written procedures for updating the statewide database with restricted purchasers.  The board and AMCO director should improve procedures to ensure municipalities report violations of alcoholic beverage laws.  The AMCO director should develop and implement procedures to ensure refunds to municipalities are appropriately …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Pharmacy Why DLA Performed This Audit The purpose of the audit was to determine if there is a need for the board’s continued existence and whether its termination date should be extended. The board is set to sunset June 30, 2018, and will have one year from that date to conclude its administrative operations. Report Conclusions The audit concluded the board operated in the public interest by effectively licensing pharmacists, pharmacy interns, pharmacy technicians, in-state pharmacies, drug rooms, and wholesale distributors. Board meetings were conducted in accordance with applicable laws and the board was active in amending regulations to improve the industry. In accordance with AS 08.03.010(c)(16), the board is scheduled to terminate on June 30, 2018. In recognition of recent statutory changes that expands the board’s responsibilities in relation to the controlled substance prescription database, we recommend that the legislature extend the board’s termination only four years to June 30, 2022. Findings and Recommendations Division of Corporations, Business, and Professional Licensing’s (DCBPL) chief investigator should work with the director to improve the timeliness of investigations.  DCBPL’s director should improve procedures to ensure required licensure documentation is appropriately obtained and …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Marine Pilots Why DLA Performed This Audit The audit’s purpose was to determine if there is a need for the board’s continued existence and whether its termination date should be extended. The board is set to sunset June 30, 2019, and will have one year from that date to conclude its administrative operations. Report Conclusions The audit concludes the board is serving the public’s interest by effectively licensing marine pilots and deputy marine pilots and approving trainees and apprentices. Board meetings were conducted in compliance with laws, investigations were processed timely, and the board actively changed regulations to improve the industry and better protect the public. The audit also concludes the board should improve the process for issuing foreign pleasure craft exemptions. Testing found exemptions were not consistently issued in accordance with regulations. Additionally, the audit found one pilot association was not appropriately tracking drug test notifications. In accordance with AS 08.03.010(c)(10), the board is scheduled to terminate on June 30, 2019. We recommend that the legislature extend the boards’ termination date to June 30, 2027. Findings and Recommendations The board should ensure applicable documents are aboard foreign pleasure crafts in accordance with regulatory requirements. The board should ensure the Southeast Alaska Pilots’ Association improves its procedures for tracking drug test …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Barbers and Hairdressers Why DLA Performed This Audit The purpose of this audit was to determine if there is a need for the board’s continued existence and whether its termination date should be extended. The board is set to sunset June 30, 2019, and will have one year from that date to conclude its administrative operations. Report Conclusions The audit concluded that the board operated in the public’s interest by effectively licensing the various occupations under the board’s purview. The board monitored licensees and worked to ensure only qualified individuals practice in Alaska. In accordance with AS 08.03.010(c)(4), the board is scheduled to terminate on June 30, 2019. We recommend that the legislature extend the board’s termination date to June 30, …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Nursing Why DLA Performed This Audit The audit’s purpose was to determine if there is a need for the board’s continued existence and whether its termination date should be extended. The board is set to sunset June 30, 2019, and will have one year from that date to conclude its administrative operations. Report Conclusions Overall, the audit concluded the board served the public’s interest by conducting meetings in accordance with State laws, amending certain regulations to improve the nurse and CNA occupations, and effectively licensing nurses and CNAs. The audit also concluded that the board failed to serve the public’s interest by not adequately regulating the distance delivery of nursing services through technology, not adequately monitoring CNA training programs, and not notifying the appropriate entities when a licensee’s prescriptive authority was suspended, revoked, or surrendered. In addition, the audit found improvements were needed in the Division of Corporations, Business and Professional Licensing’s (DCBPL) investigative process. In accordance with AS 08.03.010(c)(14) the board is scheduled to terminate June 30, 2019. We recommend the legislature extend the board’s termination date six years to June 30, 2025, which is two years less than the eight year maximum allowed per statute. The reduced extension is mainly due to the failure of the board to regulate the distance delivery of nursing services through technology and the board’s re-approval of CNA training programs without adequate review. Additionally, the board failed to address three of the four prior sunset audit recommendations. Findings and Recommendations The board should adopt regulations to address the distance delivery of nursing services through technology. The board should take steps to ensure the appropriate entities are notified when a licensee’s prescriptive authority is suspended, revoked, or surrendered. The DCBPL chief investigator should ensure nurse investigations are adequately documented and performed timely. The board chair should take steps to ensure the required certified nursing aid (CNA) on-site training program reviews and self-evaluations are conducted prior to reapproving the …

SUMMARY OF: A Sunset Review of the Department of Health and Social Services, Statewide Suicide Prevention Council Why DLA Performed This Audit The audit’s purpose was to determine if there is a need for the council’s continued existence and whether its termination date should be extended. The council is set to sunset June 30, 2019, and will have one year from that date to conclude its administrative operations. Report Conclusions The audit found the council operated in the public’s interest by actively broadening the public’s awareness of suicide prevention, and coordinating the efforts of other suicide prevention entities including State agencies, regional groups, coalitions, and local communities. Additionally, the council fulfilled its statutory duty by issuing the 2018-2022 Suicide Prevention Plan and working closely with stakeholders to add and refine the plan’s strategies, resources, and indicators. The audit also concluded that administrative improvements were needed to ensure council meetings are adequately public noticed and the executive director is consistently evaluated on an annual basis. In accordance with AS 44.66.010(a)(7), the council is scheduled to terminate on June 30, 2019. We recommend that the legislature extend the council’s termination date to June 30, 2027. Findings and Recommendations The council’s executive director should develop and implement procedures to ensure public notices for meetings are published timely and accurately. The council chair should develop and implement written procedures to ensure performance evaluations are completed annually for the council’s executive …

SUMMARY OF: A Sunset Review of the Department of Health and Social Services, Statewide Suicide Prevention Council Why DLA Performed This Audit The purpose of this audit was to determine if there is a need for the board’s continued existence and whether its termination date should be extended. The board is set to sunset June 30, 2019, and will have one year from that date to conclude its administrative operations. Report Conclusions The audit concludes that the board operated in the public’s interest by effectively licensing and regulating dentists, dental hygienists, and dental assistants. The board monitored licensees and worked to ensure only qualified individuals practiced in Alaska. Furthermore, the board was active in amending regulations to improve the industry. In accordance with AS 08.03.010(c)(7), the board is scheduled to terminate on June 30, 2019. We recommend that the legislature extend the board’s termination date eight years to June 30, 2027. Findings and Recommendations The board president should take steps to correct a regulation error. DCCED’s Division of Corporations, Business, and Professional Licensing’s chief investigator, in consultation with the board, should implement controls to ensure the appropriate entities are notified when a licensee’s prescription authority is suspended or …

SUMMARY OF: A Sunset Review of the Department of Health and Social Services,Alaska Health Care Commission Why DLA Performed This Audit The purpose of this audit was to determine if there is a need for the commission’s continued existence and whether its termination date should be extended. The commission is set to sunset on June 30, 2017, and will have one year from that date to conclude its administrative operations. Report Conclusions Overall, the audit found the commission failed to operate in the public’s interest by not developing a statewide health plan. The prior sunset audit dated May 6, 2013, concluded that, without a statewide health plan, the actions of the commission may not effectively impact health care in Alaska. The prior audit recommended the commission coordinate with DHSS on development of a plan and to clearly define roles and responsibilities of the commission. Subsequent to the audit, no significant progress was made towards development of an actionable plan. The commission has been inactive since July 2015 due to a lack of funding. In accordance with AS 44.66.010(a)(9), the commission is scheduled to terminate on June 30, 2017. We do not recommend extending the commission’s termination date. Findings and Recommendations There were no new recommendations as part of the current sunset …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Professional Counselors Why DLA Performed This Audit The purpose of the audit was to determine if there is a need for the board’s continued existence and whether its termination date should be extended. The board is set to sunset June 30, 2018, and will have one year from that date to conclude its administrative operations. Report Conclusions The board is serving the public’s interest by effectively licensing and regulating professional counselors and certified counselor supervisors. The board monitors licensees and works to ensure only qualified individuals practice in Alaska. Furthermore, the board develops and adopts regulations to improve the professional counselor occupation. In accordance with AS 08.03.010(c)(6), the board is scheduled to terminate on June 30, 2018. We recommend that the legislature extend the board’s termination date to June 30, 2026. Findings and Recommendations All prior audit recommendations were resolved and there were no new recommendations as part of the current sunset …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Marital and Family Therapy Why DLA Performed This Audit The purpose of the audit was to determine if there is a need for the board’s continued existence and whether its termination date should be extended. The board is set to sunset June 30, 2018, and will have one year from that date to conclude its administrative operations. Report Conclusions The board is serving the public’s interest by effectively licensing and regulating marital and family therapists and approving marital and family therapist supervisors. The board monitors licensees and works to ensure only qualified individuals practice in Alaska. Furthermore, the board develops and adopts regulations to improve the marital and family therapist occupation. In accordance with AS 08.03.010(c)(11), the board is scheduled to terminate on June 30, 2018. We recommend that the legislature extend the board’s termination date to June 30, 2026. Findings and Recommendations All prior sunset audit recommendations were either resolved or the issues still outstanding were considered insignificant. There were no new recommendations as part of the current sunset …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Real Estate Commission Why DLA Performed This Audit The purpose of the audit was to determine if the commission should continue to exist and to what extent its termination date should be extended. The commission is set to sunset June 30, 2018, and will have one year from that date to conclude its administrative operations. Report Conclusions The audit concludes the commission is serving the public’s interest by effectively licensing and regulating real estate licensees and offices. The commission monitored licensees and worked to ensure only qualified individuals practice in Alaska. Furthermore, the commission developed and adopted regulations to improve the real estate industry and better protect the public. In accordance with AS 08.03.010(c)(19), the commission is scheduled to terminate on June 30, 2018. We recommend that the legislature extend the commission’s termination date to June 30, 2026. Findings and Recommendations The Division of Corporations, Business, and Professional Licensing’s chief investigator should continue to improve oversight to ensure cases are actively investigated and completed …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Certified Real Estate Appraisers Why DLA Performed This Audit The purpose of the audit was to determine if there is a need for the board’s continued existence and whether its termination date should be extended. The board is set to sunset June 30, 2018, and will have one year from that date to conclude its administrative operations. Report Conclusions The audit concludes the board is serving the public’s interest by certifying and licensing real estate appraisers. The board monitored certificate holders and licensees, and worked to ensure only qualified individuals were issued certificates and licenses in Alaska. Furthermore, the board developed and adopted regulations to comply with federal requirements, improve the real estate appraisal industry, and better protect the public. In accordance with AS 08.03.010(c)(20), the board is scheduled to terminate on June 30, 2018. We recommend that the legislature extend the board’s termination date to June 30, 2026. Findings and Recommendations Division of Corporations, Business, and Professional Licensing’s (DCBPL) director should continue to improve administrative support to the board. DCBPL’s director, in consultation with the board, should reduce fees to address the …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Psychologist and Psychological Associate Examiners Why DLA Performed This Audit The purpose of the audit was to determine if there is a need for the board’s continued existence and whether its termination date should be extended. The board is set to sunset June 30, 2018, and will have one year from that date to conclude its administrative operations. Report Conclusions Overall, the audit concludes the board served the public’s interest by effectively licensing and regulating psychologists and psychological associates. The board monitored licensees and worked to ensure only qualified individuals practice in Alaska. In accordance with AS 08.03.010(c)(18), the board is scheduled to terminate on June 30, 2018. We recommend that the legislature extend the board’s termination to June 30, 2026. Findings and Recommendations Division of Corporations, Business, and Professional Licensing’s (DCBPL) director, in consultation with the board, should reduce fees. DCBPL’s director should develop and implement procedures to ensure courtesy licensees comply with monthly reporting …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Marijuana Control Board Why DLA Performed This Audit The purpose of the audit was to determine if there is a need for the board’s continued existence and whether its termination date should be extended. The board is set to sunset June 30, 2018, and will have one year from that date to conclude its administrative operations. Report Conclusions The board is serving the public’s interest by effectively licensing marijuana establishments and developing and adopting regulations necessary to implement statutes that allow for the cultivation, manufacture, and sale of marijuana in Alaska. The audit makes four recommendations for operational improvements. In accordance with AS 44.66.010(a)(13), the board is scheduled to terminate on June 30, 2018. We recommend the legislature extend the board’s termination date to June 30, 2024. Findings and Recommendations The board members, Alcohol and Marijuana Control Office (AMCO) director, and enforcement supervisor should work together to formally establish an enforcement plan to direct limited enforcement resources. The board and the AMCO director should implement a process to monitor and track complaints to ensure they are assessed for follow up action and investigated in a timely manner. The AMCO director should develop written procedures for establishing the expiration dates of marijuana handler permits and ensure staff receive the appropriate training. The AMCO director should develop and implement procedures to segregate the duties for calculating and remitting fees to local …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Massage Therapists Why DLA Performed This Audit The purpose of this audit was to determine if there is a need for the board’s continued existence and whether its termination date should be extended. The board is set to sunset June 30, 2018, and will have one year from that date to conclude its administrative operations. Report Conclusions In all areas except licensing, the audit found the board was operating in the public’s interest. In general, meetings were conducted effectively, investigations were appropriately processed, and the board actively issued or changed regulations to improve the industry and better protect the public. The audit concluded the board and DCBPL staff should improve its licensing procedures. Testing found that applicants were not consistently issued licenses in accordance with statutes, regulations, and/or procedures. Additionally, improvements are needed to comply with the federal standards over criminal history record information obtained as part of the licensing process. In accordance with AS 08.03.010(c)(12), the board is scheduled to terminate on June 30, 2018. We recommend that the legislature extend the board’s termination date to June 30, 2022. Findings and Recommendations The Division of Corporations, Business, and Professional Licensing’s (DCBPL) director, in consultation with the board, should take action to improve procedures to ensure licensure requirements are met. DCBPL’s director should address the Federal Bureau of Investigations audit findings and concerns.  The director of the Office of the Governor, Boards and Commissions should work to fill the public member …

SUMMARY OF: A Performance Audit of the Department of Commerce, Community, and Economic Development, Board of Veterinary Examiners Why DLA Performed This Audit The purpose of the audit was to determine if there is a need for the board’s continued existence and whether its termination date should be extended. The board is set to sunset June 30, 2017, and will have one year from the date to conclude its administrative operations. Report Conclusions The board is serving in the public’s interest by effectively licensing and regulating veterinarians and veterinary technicians. The board monitors licensees and works to  ensure only qualified individuals practice. Furthermore, the board develops and adopts regulations  to improve the veterinarian and veterinary technician occupations in Alaska. In accordance with AS 08.03.010(c)(22), the board is scheduled to terminate on June 30, 2017. We recommend that the legislature extend the board’s termination date to June 30, 2025. Findings and Recommendations 1. The board chair should review the annual report for accuracy and completeness before final submission to the Department of Commerce, Community, and Economic …

SUMMARY OF: A Performance Audit of the Department of Commerce, Community, and Economic Development, State Board of Certified Direct-Entry Midwives Why DLA Performed This Audit The purpose of the audit was to determine if there is a need for the board’s continued existence and whether its termination date should be extended. The board is set to sunset June 30, 2017, and will have one year from the date to conclude its administrative operations. Report Conclusions The board is serving the public’s interest by effectively licensing and regulating certified direct-entry midwives and apprentice midwives. The board monitors licensees and works to ensure only qualified individuals practice. Furthermore, the board adopts regulations to improve the practice of midwifery. In accordance with AS 08.03.010(c)(8), the board is scheduled to terminate on June 30, 2017. We recommend that the legislature extend the board’s termination date to June 30, 2021. Findings and Recommendations 1. Division of Corporations, Business and Professional Licensing (DCBPL) management, in conjunction with the board, should increase licensing fees to eliminate the board’s operating deficit. 2. The DCBPL director should take steps to ensure license records are accurately recorded. 3. The legislature should consider alternate forms of regulating the midwifery …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, State Board of Registration for Architects, Engineers, and Land Surveyors (board) Why DLA Performed This Audit The purpose of the audit was to determine if there is a need for the board’s continued existence and whether its termination date should be extended. The board is set to sunset June 30, 2017, and will have one year from that date to conclude its administrative operations. Report Conclusions The board is serving the public’s interest by effectively registering and regulating architects, engineers, land surveyors, and landscape architects. The board monitors registrants and works to ensure only qualified individuals practice in Alaska. Furthermore, the board develops and adopts regulations to improve the architect, engineer, land surveyor, and landscape architect occupations. In accordance with AS 08.03.010(c)(3), the board is scheduled to terminate on June 30, 2017. We recommend that the legislature extend the board’s termination date to June 30, 2025. Findings and Recommendations All prior year recommendations were resolved and there were no new recommendations as part of the current sunset …

SUMMARY OF: A Sunset Review of the Department of Health and Social Services,Alaska Commission on Aging Why DLA Performed This Audit The purpose of this audit was to determine if there is a demonstrated public need for the commission’s continued existence and whether its termination date should be extended. Currently the commission will terminate on June 30, 2016, and will have one year from that date to conclude its administrative operations. Report Conclusions Overall, the audit concluded that the Alaska Commission on Aging (commission) is serving the public’s interest by helping older Alaskans lead dignified, independent, and useful lives through advocacy, outreach, and education. Furthermore, the commission meets the federal requirement that each state establish an advisory council to advise the state on aging matters. We recommend that the commission’s termination date be extended eight years to June 30, 2024. Analysis of Public Need The commission has operated in the public’s interest by formulating and approving a comprehensive statewide plan — the State Plan for Senior Services. The plan identifies and addresses the concerns and needs of older Alaskans, and fulfills a federal requirement necessary to receive Administration on Aging grant funding. The commission has also operated in the public’s interest by serving as an advocate for, and educator on, the needs of older Alaskans. The commission submitted over 50 recommendations to the legislature and governor regarding legislation and appropriations for programs or services that benefit older Alaskans. Furthermore, the commission collaborated with several state and local organizations on commission projects including development of the State Plan for Senior Services and sponsoring educational and outreach events. The audit identified two operational changes that would allow the commission to better serve the public’s interests. Findings and Recommendations The commission’s executive director should implement and follow procedures to public notice all commission meetings. The commission’s chairperson should review and approve the legislation watch list prior to …

SUMMARY OF: A Sunset Review of the Department of Corrections, Board of Parole Why DLA Performed This Audit The purpose of this audit was to determine if there is a demonstrated public need for the Board of Parole’s (board) continued existence and whether its termination date should be extended. The board is scheduled to terminate on June 30, 2016, and will have one year from that date to conclude its administrative operations. Report Conclusions Overall, the audit concluded that the board is serving the public’s interest by acting as the parole authority for the State. As such, the board fulfills the constitutional requirement that the State establish a parole system. Additionally, the audit concluded that the board conducts its business in a professional and efficient manner. Although there are several operational improvements needed, the audit found a demonstrated public need for the board’s continuing operation. We recommend the board’s termination date be extended six years to June 30, 2022. Analysis of Public Need The board operated in the public’s interest by making parole decisions including granting and denying discretionary parole, authorizing parole revocations or rescissions, and establishing conditions of parole. These decisions were made in the context of both maintaining public safety as well as promoting cost-effective incarceration. The board actively worked towards achieving the following key objectives: Serving as the parole authority for the State by considering applications for discretionary and special medical parole as needed; Imposing parole conditions for offenders scheduled to be released from prison custody and providing for supervision of those offenders; Taking action against parolees who violate conditions of their release; and Suggesting changes to regulatory requirements administered by the board. Findings and Recommendations The board’s executive director should improve procedures to ensure required documentation for parole hearings is accurate and consistently included in parole files. The board’s executive director in coordination with Department of Corrections (DOC) management should implement documentation standards to ensure all offender and victim notifications are made in accordance with statutory requirements. The board should ensure proposed regulations address all statutory requirements related to its duties. DOC’s Administrative Services Division director should take steps to ensure the Alaska Corrections Offender Management System complies with state information technology security standards and national best …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Real Estate Commission Why DLA Performed This Audit The purpose of this audit was to determine if there is a need for the commission’s continued existence and whether its termination date should be extended. The commission is set to sunset on June 30, 2016, and will have one year from that date to conclude its administrative operations. Report Conclusions Overall, the audit concluded that the Real Estate Commission is serving the public’s interest by effectively licensing real estate brokers, associate brokers, and salespersons. The commission has worked to improve operations and industry practices by modifying and adopting regulations. We conditionally recommend the commission’s termination date be extended six years to June 30, 2022. If the commission does not obtain a master errors and omissions insurance policy by January 2016, we recommend an extension of no more than four years. The lack of a master policy essentially removes the insurance requirement from all real estate licensees, thereby exposing consumers to financial losses suffered as a result of errors and omissions in real estate transactions. Findings and Recommendations The commission’s chair and the Department of Commerce, Community, and Economic Development, Division of Administrative Services director should work together to procure a master errors and omissions insurance policy for real estate licensees.  The Division of Corporations, Business and Professional Licensing’s chief investigator should take action to ensure cases are actively investigated and completed …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development,Big Game Commercial Services Board Why DLA Performed This Audit The purpose of the audit is to determine if there is a need for the board’s continued existence and whether its termination date should be extended. The board is set to sunset June 30, 2016, and will have one year from that date to conclude its administrative operations. Report Conclusions Overall, the audit concludes the board has provided reasonable assurance that individuals licensed to guide and/or outfit hunts, as well as transport hunters to and from hunt locations, in Alaska are qualified to do so. Additionally, the board’s regulation and licensing of qualified guides, guide-outfitters and transporters benefited the public’s safety and safeguarded the state’s wildlife resources. In recognition that the board reported an operating deficit of over $1 million as of April 30, 2015, we recommend extending the board only three years under the condition that the board demonstrate the ability to address its deficit during the legislative sunset review process. The board believes proposed regulations that increase licensing fees and create new record processing fees will address its deficit by the end of FY 17. If the board fails to demonstrate the ability to address its operating deficit, we recommend it be considered for termination. Findings and Recommendations The Division of Corporations, Business and Professional Licensing’s (DCBPL) director should ensure staff adhere to procedures designed to provide efficient and effective support to the board.  DCBPL’s director should take steps to improve the timeliness of investigations.  DCBPL’s director, in coordination with the board, should increase licensing fees to address the board’s operating deficit.  DCBPL’s director should ensure the transporter license renewal application form complies with …

SUMMARY OF: A Sunset Review on the Department of Commerce, Community, and Economic Development, Board of Certified Direct-Entry Midwives, June 30, 2014 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the Department of Commerce, Community, and Economic Development’s (DCCED) Board of Certified Direct-Entry Midwives (board). The purpose of this audit was to determine if there is a demonstrated public need for the board’s continued existence and if it has been operating in an effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether the board should be reestablished. Currently, under AS 08.03.010(c)(8), the board will terminate on June 30, 2015, and will have one year from that date to conclude its administrative operations. Report Conclusions Overall, the audit concluded that the board is serving the public’s interest by effectively licensing certified direct-entry midwives (CDM) and apprentices. Furthermore, the board worked to improve the profession by modifying and adopting midwifery regulations to conform with current standards of care. The audit also concluded that Division of Corporations, Business and Professional Licensing (DCBPL) staff failed to operate in the public’s interest by not pursuing timely disciplinary sanctions related to four CDM investigations. We recommend the board’s termination date be extended only two years to June 30, 2017. The reduced extension recommendation is due to significant deficiencies by DCBPL staff in pursing disciplinary sanctions. Findings and Recommendations DCCED’s commissioner should take immediate action to pursue disciplinary sanctions for CDM cases when warranted. DCBPL, in consultation with the board, should increase licensing fees to eliminate the board’s operating deficit. The board should communicate certificate requirements to continuing education providers to facilitate compliance with centralized licensing regulations. The board should approve apprentice permit applications in accordance with statutes. …

SUMMARY OF: A Sunset Review on the Department of Commerce, Community, and Economic Development, Alcoholic Beverage Control Board, May 30, 2014 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the Department of Commerce, Community, and Economic Development’s (DCCED) Alcoholic Beverage Control Board (board). The purpose of this audit was to determine if there is a demonstrated public need for its continued existence and if it has been operating in an effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether the board should be reestablished. Currently, under AS 44.66.010(a)(1), the board will terminate on June 30, 2015, and will have one year from that date to conclude its administrative operations. Report Conclusions We conclude that the board’s termination date should be extended. The board is serving the public’s interest by effectively licensing and regulating the manufacture, barter, possession, and sale of alcoholic beverages in Alaska. The board has demonstrated a need for its continued existence by protecting the general public through the issuance, renewal, revocation, and suspension of alcoholic beverage licenses. Protection has also been provided through investigations of suspected licensing violations and enforcement of the State’s alcoholic beverage control laws and regulations. We conditionally recommend that the board’s termination date be extended five years to June 30, 2020. If the marijuana voter initiative passes, we recommend a shorter extension of no more than three years as the initiative significantly expands the board’s duties. Findings and Recommendations The prior sunset audit included three recommendations. Two prior recommendations have been resolved, and the other has been partially resolved and is reiterated as parts of Recommendation Nos. 1 and 2. This report makes three new recommendations. The board’s director should ensure that all board meetings are properly published on the State’s Online Public Notice System. The board should notify local governing bodies of applications for new and transfer licenses within 10 days of receipt.  The board should issue catering permits in accordance with statutory requirements. The board should issue recreational site licenses in accordance with statutory requirements. The board should implement a process to monitor and track all complaints to ensure they are resolved in a timely …

SUMMARY OF: A Sunset Review on the Department of Commerce, Community, and Economic Development, Board of Marine Pilots (BMP or board), November 5, 2012 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed BMP’s activities. The purpose of this audit was to determine if there is a demonstrated public need for the board’s continued existence and if the board has been operating in an effective manner. This audit also addresses the recommendations made in the prior sunset audit. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether the board should be reestablished. Currently, under AS 08.03.010(c)(10), BMP will terminate on June 30, 2013, and will have one year from that date to conclude its administrative operations. Report Conclusions We conclude that BMP’s termination date should be extended. Regulating and licensing qualified marine pilots benefits the public’s safety and welfare, and protects the marine environment. The board provides reasonable assurance that individuals licensed to pilot passenger and cargo ships in Alaskan waters are qualified. We recommend that the board’s termination date be extended to June 30, 2019. The board has successfully resolved many of the issues identified in the prior sunset audit. This report makes one new recommendation to improve BMP operational activities. Findings and Recommendations Recommendation No. 1 The marine pilot coordinator should improve administration of BMP operational activities. While the board has successfully resolved many of the issues identified in the prior sunset audit, current analysis of BMP operational activities showed administrative deficiencies regarding public meeting notifications, licensing documentation, and oversight of the pilot associations’ drug and alcohol …

SUMMARY OF: A Sunset Review on the Department of Public Safety, Council on Domestic Violence and Sexual Assault, May 21, 2013 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the Council on Domestic Violence and Sexual Assault’s (council or CDVSA) activities. The purpose of this audit was to determine if there is a demonstrated public need for its continued existence and if it has been operating in an effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether the council should be reestablished. Currently, under AS 44.66.010(a)(5), the council will terminate on June 30, 2014, and will have one year from that date to conclude its administrative operations. Report Conclusions The council is serving in the public’s interest by funding and monitoring Alaskan domestic violence and sexual assault response programs and prevention activities. Additionally, the council effectively served as the central coordinator for related services throughout the State. However, areas for operational improvements were noted as discussed in the Findings and Recommendations. CDVSA is scheduled to terminate June 30, 2014. We recommend the council’s termination date be extended eight years to June 30, 2022. Findings and Recommendations The council should address its statutory responsibility to consult with the Department of Health and Social Services to formulate standards and procedures as required by AS 18.66.300. The council’s executive director should implement written procedures to ensure public notices are posted timely. The council’s executive director should improve grant award and monitoring policies and …

SUMMARY OF: A Sunset Review on the Department of Commerce, Community, and Economic Development, Board of Certified Real Estate Appraisers, June 10, 2013 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the Board of Certified Real Estate Appraisers’ (board or BCREA) activities. The purpose of this audit was to determine if there is a demonstrated public need for its continued existence and if it has been operating in an effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether the board should be reestablished. Currently, under AS 08.03.010(c)(19), the board will terminate on June 30, 2014, and will have one year from that date to conclude its administrative operations. Report Conclusions We conclude that BCREA’s termination date should be extended. Regulating and licensing real estate appraisers benefits the public’s interest. The board provides reasonable assurance that individuals licensed as real estate appraisers are qualified. We recommend the board’s termination date be extended only four years to June 30, 2018, which is half of the maximum allowed in state law. The reduced extension is in recognition of the increase in the board’s federally mandated responsibilities. In the upcoming years, federal law requires the board to expand its regulation responsibilities to include appraisal management companies. The Division of Corporations, Business and Professional Licensing (DCBPL) materially addressed the prior sunset audit recommendations; however, additional deficiencies were noted. This audit makes two recommendations to improve the administrative support to the board. Findings and Recommendations DCBPL’s director should continue efforts to improve the investigative case management system’s integrity and confidentiality. DCBPL’s director should take steps to improve administrative support to …

SUMMARY OF: A Sunset Review on the Department of Commerce, Community, and Economic Development, State Physical Therapy and Occupational Therapy Board, June 17, 2013 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the State Physical Therapy and Occupational Therapy Board’s (board) activities. The purpose of this audit was to determine whether there is a demonstrated public need for the board’s continued existence and whether it has been operating in an effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether the board should be reestablished. Currently, under AS 08.03.010(c)(16), the board will terminate on June 30, 2014, and will have one year from that date to conclude its administrative operations. Report Conclusions We conclude that the board’s termination date should be extended. The board is protecting the public’s interest by effectively licensing and regulating physical therapists, physical therapy assistants, occupational therapists, and occupational therapy assistants. The board monitors licensees and ensures that only qualified individuals practice. Furthermore, the board develops and adopts regulatory changes to improve the physical and occupational therapy professions in Alaska. We recommend that the board’s termination date be extended to June 30, 2022. The prior sunset audit included one recommendation which has been resolved. This report makes one new recommendation to the Division of Corporations, Business and Professional Licensing (DCBPL) to address various deficiencies in its investigations case management system. Findings and Recommendations DCBPL’s director should continue to improve the investigative case management system’s integrity and …

SUMMARY OF: A Sunset Review on the Department of Commerce, Community, and Economic Development, Board of Marital and Family Therapy, June 19, 2013 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the Board of Marital and Family Therapy (board or BMFT). The purpose of this audit was to determine if there is a demonstrated public need for the board’s continued existence and if it has been operating in an effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether BMFT should be reestablished. Currently, under AS 08.03.010(c)(11), the board will terminate on June 30, 2014, and will have one year from that date to conclude its administrative operations. Report Conclusions We conclude that BMFT’s termination date should be extended. Regulating and licensing marital and family therapists benefits the public’s safety and welfare. The board provides reasonable assurance that individuals licensed as marital and family therapists are qualified. We recommend that the board’s termination date be extended four years to June 30, 2018, which is half of the eight-year maximum extension provided in Alaska Statutes. The reduced extension recommendation is mainly due to the board not fully addressing the prior sunset audit recommendation to pursue regulation changes that are necessary to protect the public’s interest. Although the board has initiated one regulatory revision, it has not addressed the need for distance therapy and distance supervision. Findings and Recommendations BMFT should develop a strategy to address the need for distance therapy and distance supervision. The Office of the Governor and BMFT should work together to fill vacant board seats in a timely …

SUMMARY OF: A Sunset Review on the Department of Commerce, Community, and Economic Development, Board of Examiners in Optometry, June 30, 2013 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the Board of Examiners in Optometry (board or BEO). The purpose of this audit was to determine whether there is a demonstrated public need for BEO’s continued existence and whether it has been operating in an effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether the board should be reestablished. Currently, under AS 08.03.010(c)(14), the board will terminate on June 30, 2014, and will have one year from that date to conclude its administrative operations. Report Conclusions We conclude that the board’s termination date should be extended. BEO is serving the public’s interest by effectively licensing and regulating optometrists. The board monitors licensees and ensures that only qualified individuals practice. The board also develops and adopts regulatory changes to improve the optometry profession in Alaska. We recommend that the board’s termination date be extended to June 30, 2022. The prior sunset audit included two recommendations which have been resolved. This report makes one new recommendation to the Division of Corporations, Business and Professional Licensing (DCBPL or division) regarding its investigative support to the board. Improvements are needed to address various investigative case management system deficiencies. Findings and Recommendations DCBPL’s director should continue efforts to improve the investigative case management system’s integrity and …

SUMMARY OF: A Sunset Review on the Department of Commerce, Community, and Economic Development, Board of Chiropractic Examiners, June 6, 2013 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the Board of Chiropractic Examiners’ (board or BCE) activities. The purpose of this audit was to determine if there is a demonstrated public need for the board’s continued existence and if it has been operating in an effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether BCE should be reestablished. Currently, under AS 08.03.010(c)(5), the board will terminate on June 30, 2014, and will have one year from that date to conclude its administrative operations. Report Conclusions We conclude that BCE’s termination date should be extended. The board is protecting the public’s interest by effectively licensing and regulating chiropractors. BCE monitors licensees and ensures that only qualified individuals practice. Furthermore, the board develops and adopts regulatory changes to improve the chiropractic profession in Alaska. We recommend that the board’s termination date be extended eight years to June 30, 2022. The prior sunset audit included one recommendation which has been resolved. This report makes two new recommendations for improving board operations. Findings and Recommendations The Office of the Governor should make board appointments in compliance with statutory requirements. The Division of Corporations, Business and Professional Licensing’s director should continue efforts to improve the investigative case management system’s integrity and …

SUMMARY OF: A Sunset Review on the Department of Commerce, Community, and Economic Development, Regulatory Commission of Alaska, July 19, 2013 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the Regulatory Commission of Alaska’s (commission or RCA) activities. The purpose of this audit was to determine if there is a demonstrated public need for its continued existence and if it has been operating in an effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether the commission should be reestablished. Currently, under AS 44.66.010(a)(3), RCA will terminate on June 30, 2014, and will have one year from that date to conclude its administrative operations. Report Conclusions Overall, RCA is operating in the public’s interest. In our opinion, the commission fulfills a public need and is serving Alaskans by: Assessing utility and pipeline companies’ capabilities for safely serving the public; Evaluating regulated entities’ tariffs and charges; Verifying charges passed through to consumers from electric and natural gas utilities; Adjudicating disputes between ratepayers and regulated entities; and Providing consumer protection services. We recommend the legislature extend RCA’s termination date until June 30, 2022. Although the commission partially addressed case management system data deficiencies noted in the audit of RCA’s FY 11 annual report, continuing deficiencies were noted and further improvements are recommended. We also recommend the legislature consider clarifying the statutory timeline for rulemaking proceedings. Findings and Recommendations Recommendation No. 1 RCA’s chair should improve and enforce written procedures to ensure case management system data is accurate, consistent, and complete. Although RCA management developed written procedures for tariff filing and docket data entry during FY 12, testing results showed procedures were not consistently applied. The data errors can be attributed to a lack of adequate training and documentation of data review, and a lack of ongoing quality reviews to ensure case management system data is accurate, consistent, and complete. Recommendation No. 2 The legislature should consider clarifying AS 42.05.175(e) to ensure RCA fulfills legislative intent when processing regulatory dockets. The legislature should consider clarifying AS 42.05.175(e) to ensure RCA fulfills legislative intent when processing regulatory dockets. Currently, RCA interprets AS 42.05.175(e) to allow for two separate dockets during the regulatory process. If the legislature intends the entire regulatory deliberative process to be subject to the 730-day timeline, the legislature should consider clarifying Alaska …

SUMMARY OF: A Sunset Review on the Department of Health and Social Services, Alaska Health Care Commission, May 6, 2013 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the Alaska Health Care Commission (commission). The purpose of this audit was to determine if there is a demonstrated public need for its continued existence and if it has been operating in an effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether the commission should be reestablished. Currently, under AS 44.66.010(a)(9), the commission will terminate on June 30, 2014, and will have one year from that date to conclude its administrative operations. Report Conclusions Overall, the commission is operating in the public’s interest, but improvements in the development of a statewide health plan are needed to justify its continued existence. Without a statewide health plan, the actions of the commission may not effectively impact health care in Alaska. (See Recommendation No 1.) Deficiencies related to public notices and annual reports were also noted. (See Recommendation Nos. 2 and 3.) We recommend the commission’s termination date be extended three years to June 30, 2017, to provide adequate time to develop a statewide health plan. Findings and Recommendations The commission should coordinate with DHSS’ commissioner to identify each agency’s roles and responsibilities regarding developing a statewide health plan and pursue development accordingly. The commission chair should implement a policy to utilize DHSS public noticing procedures for commission meetings. The commission chair should implement procedures to ensure annual reports include all statutorily required …

SUMMARY OF: A Sunset Review on the Department of Natural Resources, Alaska Seismic Hazards Safety Commission, September 19, 2013 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the Alaska Seismic Hazards Safety Commission (commission or ASHSC). The purpose of this audit was to determine if there is a demonstrated public need for the commission’s continued existence and if the commission has been operating in an effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether the commission should be reestablished. Currently, under AS 44.66.010(a)(8), the commission will terminate on June 30, 2014, and will have one year from that date to conclude its administrative operations. Report Conclusions Overall, we conclude the commission is operating in the public’s interest, but improvements are needed to increase effectiveness. During the audit period, the commission served the public’s interest by issuing eight seismic hazards mitigation recommendations. As the State’s designated seismic hazard mitigation advisory commission, the ASHSC relies on other organizations to implement recommended actions. Six recommendations were issued to the State and legislature, and two were issued to other entities. The commission also gathered, analyzed, and disseminated information and assisted with seismic hazards safety mitigation training efforts. The audit identified several areas for operational improvements. (See Recommendation Nos. 1 through 4.) Recommendations include improving strategic planning documents; replacing chronically absent commission members; filling vacant positions in a timely manner; and ensuring commission recommendations identify the required actions and organizations responsible for implementation. Findings and Recommendations The commission should improve prioritization and accountability within its strategic planning documents. The commission should recommend replacing habitually absent members in a timely manner. The Office of the Governor and the commission should work together to fill all commission vacancies in a timely manner. The commission should ensure recommendations clearly identify the organization responsible for implementing an action and the action to be …

SUMMARY OF: A Sunset Review on the Department of Health and Social Services, Statewide Suicide Prevention Council (council), June 4, 2012 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the council. The purpose of this audit was to determine if there is a demonstrated public need for the council’s continued existence and if the council has been operating in an effective and efficient manner. As required byAS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether the council should be reestablished. Currently, under AS 44.66.010(a)(7), the council will terminate on June 30, 2013, and have one year from that date to conclude its administrative operations. Report Conclusions Overall, the council is operating in the public’s interest. The council actively seeks to broaden the public’s awareness of suicide as well as coordinates the efforts of other suicide prevention entities throughout the state. We recommend the council’s termination date be extended to June 30, 2019. The council has experienced notable improvements since its organizational alignment with the Alaska Mental Health Board (AMHB), and the Advisory Board on Alcoholism and Drug Abuse (ABADA). The AMHB and ABADA executive director’s leadership as well as staff support under the new structure are significant factors in the council’s improvements. While the council’s current organizational structure has proven beneficial, there is no formal agreement in place to ensure the executive director’s time and abilities will continue to be shared effectively between AMHB, ABADA, and the council. Findings and Recommendations The council should, in accordance with statute, appoint its own coordinator and conduct annual performance reviews. The council should monitor meeting attendance and inform the Office of the Governor of poor member attendance. The council should develop and monitor performance measures that support statutory duties and annually report …

SUMMARY OF: A Sunset Review on the Alaska Court System, Board of Governors of the Alaska Bar Association (board), July 11, 2012 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the board. The purpose of this audit was to determine if there is a demonstrated public need for its continued existence and if it has been operating in an effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether the board should be reestablished. Currently, under AS 08.03.010(c)(2), it will terminate on June 30, 2013 and will have one year from that date to conclude its administrative operations. Report Conclusions We conclude that the board’s termination date should be extended. The board, through the Alaska Supreme Court, protects the public by ensuring that persons licensed to practice law are qualified. It also provides for complaint investigation and has established a disciplinary process designed to promote competence and professionalism in licensed individuals. We recommend that the board’s termination date be extended to June 30, 2021. One recommendation was made to increase continuing legal education (CLE) for attorneys. CLE contributes to lawyer competence and benefits the public and the profession by ensuring that attorneys remain current regarding the law, the profession’s obligations and standards, and the management of their practices. Findings and Recommendations The board should recommend to the Alaska Supreme Court that mandatory minimum CLE for attorneys be …

SUMMARY OF: A Sunset Review on the Department of Education and Early Development (DEED or department) and the Department of Health and Social Services (DHSS), Special Education Service Agency (SESA or agency), June 22, 2012 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed SESA activities. The purpose of this audit was to determine if there is a demonstrated public need for its continued existence and if it has been operating in an effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether SESA should be reestablished. Currently, under AS 44.66.010(a)(6), SESA will terminate on June 30, 2013, and will have one year from that date to conclude its administrative operations. Report Conclusions In our opinion, SESA meets a valid public need by: (1) assisting school districts in providing students affected by low incidence disabilities (LID) an education that meets their unique needs; (2) affording opportunities to enhance the capabilities of school district teachers and paraprofessionals; and (3) providing LID and special education resources. We recommend the legislature extend SESA’s termination date until June 30, 2021. Findings and Recommendations Recommendation No. 1 DEED’s special education director and SESA management should collaborate to ensure SESA is operating and funded as intended by the legislature. DEED management has not actively assessed SESA activities and funding to ensure that the department and the agency are fulfilling legislative intent by providing appropriate services to children affected by LID. DEED management did not fulfill their oversight responsibility and effectively collaborate with SESA. Recommendation No. 2 SESA’s board president should revise board policies and procedures to improve SESA oversight and accountability. SESA’s board did not provide adequate oversight of certain SESA activities. Specific areas include: Lack of oversight of employee-related contracts. Lack of administrative ethics policies. Inadequate public notice of board meetings. Board work meetings are not publicly noticed or documented. Auditor’s Comments SESA’s organizational structure has created confusion regarding the oversight responsibility for funding and monitoring SESA’s LID Outreach Program. The confusion is rooted in SESA’s status as a nonprofit corporation with several oversight entities. Statutes designate DHSS’ Governor’s Council on Disabilities and Special Education (council) as SESA’s governing entity. However, the council does not have budgetary authority over SESA. As a component of special education, SESA’s LID program is funded through DEED as required by statute. Additionally, SESA’s corporate bylaws designate a separate governing board that is made up of no less than five and no more than seven council members. Bylaws also designate DEED’s special education director as a SESA board member. The organizational structure has led to confusion and conflicting opinions regarding which entity is responsible for SESA’s budget and operational oversight. The council does not pursue increasing SESA’s LID program funding through the budgetary process because SESA is statutorily funded by DEED. DEED management does not consider itself authorized to monitor or increase funding for SESA’s LID program because SESA reports to the council. The legislature should consider evaluating statutes relating to SESA to clarify oversight …

SUMMARY OF: A Sunset Review on the Department of Commerce, Community, and Economic Development, State Medical Board(board), September 18, 2012 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the board. The purpose of this audit was to determine if there is a demonstrated public need for its continued existence and if it has been operating effectively. Alaska Statute 08.03.010(c)(12) states the board will terminate on June 30, 2013. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether the board should be reestablished. Our audit objectives were as follows. Determine if the board’s termination date should be extended. Determine if the board is operating in the public’s interest. 3. Determine if the board has exercised appropriate, regulatory oversight of osteopaths, podiatrists, physicians, physician assistants, and paramedics. Provide a current status of recommendations made in prior board-related audits. Report Conclusions In our opinion, the board is serving the public’s interest by effectively licensing and regulating osteopaths, podiatrists, physicians, physician assistants, and paramedics. The board is also serving the public’s interest by monitoring the profession and ensuring only qualified individuals are licensed to practice medicine. The board is scheduled to terminate June 30, 2013. We recommend the board’s termination date be extended seven years to June 30, 2020. Findings and Recommendations The Division of Corporations, Business and Professional Licensing’s (DCBPL) director should continue to address deficiencies in the investigative case management system. DCBPL’s director should implement procedures to ensure board disciplinary actions are reported in accordance with state and federal law. DCBPL’s director should ensure continuing medical education reviews comply with state …

SUMMARY OF: A Sunset Review on the Department of Commerce, Community, and Economic Development, Board of Public Accountancy (BPA or board), June 1, 2012 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed BPA activities. The purpose of this audit was to determine if there is a demonstrated public need for the board’s continued existence and if it has been operating effectively. Alaska Statute 08.03.010(c)(1) states the board will terminate on June 30, 2013. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether BPA should be reestablished. Our audit objectives were as follows. Determine if the board’s termination date should be extended. Determine if the board is operating in the public’s interest. Determine if the board has exercised appropriate, regulatory oversight of certified public accountants (CPA) and licensed public accounting firms. Provide a current status of recommendations made in prior board-related audits. Report Conclusions In our opinion, the board’s termination date should be extended. BPA is serving the public’s interest by effectively licensing and regulating CPAs. The board is also serving the public’s interest by monitoring the profession and ensuring only qualified individuals practice as CPAs. BPA is proactive in shaping the future of the accounting profession through member participation on national committees which set professional standards. Furthermore, the board successfully developed and adopted regulatory changes to improve the public accountancy profession in Alaska. The board is scheduled to terminate June 30, 2013. If no action is taken by the legislature, BPA will have one year from that date to conclude its administrative operations. We recommend the board’s termination date be extended eight years to June 30, 2021. Findings and Recommendations Recommendation No. 1 The Division of Corporations, Business and Professional Licensing (division) director should continue to address deficiencies in the investigative case management system. The division has taken steps to address previously noted findings; however, deficiencies in the case management system remain. A review of BPA cases found key information, such as priority codes, case open dates, and resolution codes, was missing from the case management system. Additionally, two cases were listed as open on the system for over a year beyond their actual closure dates. The noted deficiencies hamper the division’s ability to provide adequate investigative support to the …

SUMMARY OF: A Sunset Review on the Department of Natural Resources, Alaska Seismic Hazards Safety Commission (ASHSC), June 15, 2011 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the ASHSC. The purpose of this audit was to determine if there is a demonstrated public need for its continued existence and if it has been operating in an effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether the ASHSC should be reestablished. Currently, under AS 44.66.010(a)(8), the ASHSC will terminate on June 30, 2012, and will have one year from that date to conclude its administrative operations. Report Conclusions The ASHSC’s termination date should be extended until June 30, 2016. Overall, we found the ASHSC is operating in the public’s interest. The ASHSC has gathered and disseminated information; facilitated discussions and partnerships with various members of state, local, and federal government as well as private entities concerning seismic hazards and risk mitigation; encouraged efforts to address seismic risk mitigation; and brought attention to seismic hazards. However, improvements are needed to increase the ASHSC’s effectiveness and efficiency. Although the organization has been active in addressing a number of its statutory objectives, it lacks measureable outcomes to improve seismic hazards risk mitigation that correspond to commission activities. Additionally, the ASHSC has made only two formal policy recommendations in six years. By not analyzing its progress on a regular basis, the commission cannot readily identify areas in need of improvement, ways to efficiently manage its goals, or areas in need of greater attention. Findings and Recommendations 1. The ASHSC should develop a strategic plan to guide its efforts to mitigate seismic hazard risk in Alaska. 2. The ASHSC should develop procedures to ensure meetings are published on the Alaska Public Notice System in a timely manner. 3. The ASHSC should follow the adopted rules of procedure and recommend immediate replacement of habitually absent members. 4. The Office of the Governor and the ASHSC should work to fill appointments to all commission seats in a timely …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Big Game Commercial Services Board, September 13, 2011 Purpose of the Report In accordance with Titles 24 and 44 of the Alaska Statutes (sunset legislation), we have evaluated the activities of the Big Game Commercial Services Board (board) to determine if there is a demonstrated public need for its continued existence and if it has been operating in an efficient and effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether the board should be reestablished. Currently, AS 08.03.010(c)(9) states that the board will terminate on June 30, 2012, and will have one year from that date to conclude its administrative operations. Our audit objectives were as follows. 1. Determine if the termination date of the board should be extended. 2. Determine if the board is operating in the public’s interest. 3. Determine if the board has exercised appropriate, regulatory oversight of licensed guide-outfitters and transporters. Report Conclusions In our opinion, the termination date of the board should be extended. The regulation and licensing of qualified, registered guide-outfitters and transporters benefits the public’s safety and welfare as well safeguards the State’s wildlife resources. The board has provided reasonable assurance that the individuals licensed to guide and/or outfit hunts as well as transport hunters to and from hunt locations in Alaska are qualified to do so. The board has also successfully developed and adopted regulatory changes to improve the big game commercial services industry in Alaska. In our opinion, the board serves an important public purpose. We recommend the board’s termination date be extended for four years to June 30, 2016. The recommended extension date is half of the eight-year maximum allowed in statute because the department and the board did not fully address the previous sunset audit’s findings and because of other operational support issues identified in the findings and recommendations portion of this report. Except for these deficiencies, the board has met the various statutory sunset criteria. Findings and Recommendations 1. The Division of Corporations, Business and Professional Licensing’s (division) director should ensure procedures are developed and that division staff adhere to them in order to provide efficient and effective support to the board’s day-to-day operations. 2. The division director should ensure staff adhere to investigative case management procedures and develop additional procedures and reporting tools as necessary. 3. The division, in conjunction with the board, should increase licensing fees and/or reduce expenditures to mitigate the board’s current and projected operating deficits. 4. The board should consider modifying regulatory first aid requirements to provide consistency between guide-outfitter licensee types. 5. The board should reconsider the electronic accumulation of information gathered from hunt records and transporter reports. 6. The division director should ensure controls over the database security of hunt records and the physical custody of hunt records and transporter reports are …

SUMMARY OF: A Sunset Review on the Department of Commerce, Community, and Economic Development (DCCED), Regulatory Commission of Alaska (RCA), October 16, 2010 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the RCA. The purpose of this audit was to determine if there is a demonstrated public need for its continued existence and if it has been operating in an effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether the RCA should be reestablished. Currently, under AS 44.66.050(a)(3), the RCA will terminate on June 30, 2011, and will have one year from that date to conclude its administrative operations. Report Conclusions In our opinion, the RCA fulfills a public need and is serving Alaskans by: Assessing the capabilities of utility and pipeline companies to safely serve the public; Evaluating tariffs and charges made by regulated entities; Verifying the pass-through charges to consumers from electric and natural gas utilities; Adjudicating disputes between ratepayers and regulated entities; Providing consumer protection services; and Performing financial reviews of utilities for the State’s power cost equalization program. Under AS 44.66.010(a)(3), the RCA is scheduled to terminate June 30, 2011. We recommend the legislature extend the RCA’s termination date until June 30, 2019. Findings and Recommendations The prior sunset audit recommended improvements in three areas: (1) establishing timelines for matters not covered by statute; (2) establishing standards for certain aspects of discovery; and (3) clarifying terms used in statute that relate to established timelines for certain formal proceedings. In May 2007, HB 209 amended the statutory timelines in AS 42.05.175 to include a new section for other adjudicated matters. The amendment also modified the timeframes from months to days. The concerns related to this part of the prior audit recommendation have substantially been addressed. The concerns related to discovery standards have not been addressed, but the RCA is currently in the process of evaluating industry and public input on discovery regulations. The third part of the prior audit recommendation states that the RCA should clarify terms used in statute that relate to established timelines for certain formal proceedings. Specific terms include complete applications, tariff filings, formal complaints and petitions. The RCA adopted new regulations specific to complete and incomplete applications. The RCA management stated that no regulations were adopted for the terms complete tariff filings, formal complaints, and petitions. The prior recommendation also suggested that an alternative solution could be to clarify terms by developing the practice of issuing an order to memorialize the date when the initial record is considered complete. The RCA did implement this practice by issuing an initiating order on each matter which calculates and identifies the statutory deadline. Parties disputing the calculation of the statutory deadline may petition the RCA for reconsideration within 15 days of the initiating order. Under this revised procedure, the statutory deadline is known and communicated to all parties early in the proceeding. In summary, the overall recommendation has been partially …

SUMMARY OF: A Sunset Review on the Department of Commerce, Community, and Economic Development (DCCED), Board of Dental Examiners (BDE), September 30, 2010 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of BDE. The purpose of this audit was to determine if there is a demonstrated public need for its continued existence and if it has been operating in an effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether the BDE should be re-established. Currently, under AS 08.03.010(c)(7), BDE will terminate on June 30, 2011, and will have one year from that date to conclude its administrative operations. Report Conclusions BDE should continue to regulate dentists and dental hygienists. The board is serving the public’s interest by promoting the competence and integrity of those who provide services to the public as licensed dentists and dental hygienists. We recommend the legislature extend BDE’s termination date to June 30, 2019. DCCED’s, Division of Corporation, Business and Professional Licensing’s (DCBPL) investigation unit did not address all investigations in a timely manner. Findings and Recommendations 1. DCBPL’s chief investigator should take steps to ensure complaints and cases are investigated …

SUMMARY OF: A Sunset Review on the Department of Commerce, Community, and Economic Development (DCCED), Board of Barbers and Hairdressers (BBH), September 30, 2010 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of BBH to determine if there is a demonstrated public need for its continued existence and if it has been operating in an efficient and effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether BBH should be reestablished. Currently, under AS 08.03.010(c)(4), the board will terminate on June 30, 2011, and will have one year from that date to conclude its administrative operations. Report Conclusions BBH should continue to regulate barbers, hairdressers, estheticians, manicurists, tattooists/permanent cosmetic colorists, and body piercers. The board is serving the public interest by promoting the competence and integrity of those who provide services to the public under these professions. We recommend the legislature extend the board’s termination date to June 30, 2019. DCCED, Division of Corporations, Business and Professional Licensing’s investigation unit did not address all investigations in a timely manner. The current public board member is a licensed practitioner and therefore does not meet the statutory requirements. Findings and Recommendations 1. The division’s chief investigator should take steps to ensure complaints and cases are investigated timely. 2. The current public board member should either surrender her license or be removed from the public board member …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Nursing (BON), September 30, 2010 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of BON to determine if there is a demonstrated public need for its continued existence and if it has been operating in an effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether BON should be reestablished. Currently, under AS 08.03.010(c)(13), BON will terminate on June 30, 2011, and will have one year from that date to conclude its administrative operations. Report Conclusions BON is operating in an efficient and effective manner and should continue to regulate the professions it governs. We believe the board is safeguarding the public interest by ensuring the competence and integrity of those who present themselves to the public for the professions regulated by BON: licensed registered nurses, licensed practical nurses (LPN), advanced nurse practitioners (ANP), certified registered nurse anesthetists, certified nurse aides, and nurse and nurse aide training programs. BON has conducted its business in a satisfactory manner. It continues to propose changes to regulations to improve the board’s effectiveness and to ensure that professionals are properly licensed. Under AS 08.03.010(c)(13), BON will terminate on June 30, 2011. If not extended by the legislature, under AS 08.03.020, BON will have a one-year period to administratively conclude its affairs. We recommend that the legislature extend the board’s termination date to June 30, 2019. Findings and Recommendations BON should take steps to ensure all appropriate entities are notified when an ANP’s authority to write prescriptions has been revoked or suspended. The BON chairman should take steps to ensure that the required training program reviews are being conducted. The Division of Corporations, Business, and Professional Licensing’s chief investigator should take steps to ensure that complaints and cases are investigated timely. The director of Boards and Commissions, Office of the Governor, should fill the LPN position with an LPN currently involved in institutional nursing …

SUMMARY OF: A Sunset Review on the Department of Commerce, Community, and Economic Development (DCCED), Board of Pharmacy (BOP), November 12, 2009 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of BOP. The purpose of this audit was to determine if there is a demonstrated public need for its continued existence and if it has been operating in an effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether BOP’s termination date should be extended. Currently under AS 08.03.010(c)(15), BOP is scheduled to terminate on June 30, 2010. If the legislature does not extend the board’s termination date, BOP will have one year to conclude its administrative operations. Report Conclusions The termination date for BOP should be extended until June 30, 2018. The board is safeguarding the public interest by ensuring the competence of individuals who present themselves to the public as pharmacists, pharmacist interns, and pharmacist technicians through licensing and regulatory requirements. The board also has an integral role in the regulation of pharmacies, drug rooms, and wholesale distributors and should continue to regulate those entities. Findings and Recommendations 1. BOP should approve collaborative protocols in accordance with regulation. 2. DCCED’s professional licensing administrative officer should improve administrative support. 3. BOP and staff within the Office of the Governor should work together to increase the pool of qualified applicants available for board appointments to ensure full …

SUMMARY OF: A Sunset Review on the Department of Commerce, Community, and Economic Development (DCCED), Board of Psychologist and Psychological Associate Examiners (BPPA), October 28, 2009 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of BPPA. The purpose of this audit was to determine if there is a demonstrated public need for its continued existence and if it has been operating in an effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether BPPA should be reestablished. Currently under AS 08.03.010(c)(18), BPPA will terminate on June 30, 2010. If the legislature does not extend the termination date for the board, BPPA will have one year from that date to conclude its administrative operations. Report Conclusions BPPA is operating in an efficient and effective manner and should continue to regulate the psychology profession. The board is safeguarding the public interest by ensuring the competence and integrity of those who present themselves to the public as psychologists and psychological associate examiners. We recommend the legislature extend the board’s termination date to June 30, 2018, the maximum extension allowed in statute. Findings and Recommendations 1. DCCED Division of Corporations, Business and Professional Licensing’s administrative officer should take steps to ensure courtesy licensees comply with reporting requirements. 2. The division’s professional licensing administrative officer should take steps to improve administrative support. 3. BPPA and staff within the Office of the Governor should work together to increase the pool of qualified applicants available for board appointments to ensure full …

SUMMARY OF: A Sunset Review on the Department of Commerce, Community, and Economic Development (DCCED), Board of Certified Real Estate Appraisers (BCREA), October 30, 2009 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of BCREA. The purpose of this audit was to determine if there is a demonstrated public need for its continued existence and if the board has been operating in an effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether BCREA’s termination date should be extended. Currently, under AS 08.03.010(c)(20), BCREA will terminate on June 30, 2010. If the legislature does not extend the termination date for the board, BCREA will have one year from that date to conclude its administrative operations. Report Conclusions The use of state certified real estate appraisers will be a continuing requirement for Alaska’s financial institutions to qualify for federal deposit insurance and to participate in selling mortgage loans to federal government-sponsored enterprises. Failure to maintain a real estate appraiser certification program that meets federal requirements could cause the financial institutions – and by extension, the citizens of the State – to lose the opportunity to participate in a number of federally sponsored real estate loan programs and the ability to obtain federal deposit insurance. In this context, we recommend that the legislature extend BCREA’s termination date to June 30, 2014. The recommended termination date is half of the 8 year maximum allowed in statute to recognize that DCCED and the board failed to address findings issued by the Appraisal Subcommittee (ASC). ASC identified two deficiencies that needed to be addressed in order to come into substantial compliance with Title XI of the 1989 Financial Institutions Reform, Recovery, and Enforcement Act. DCCED and BCREA have satisfactorily addressed only one of the two deficiencies. Findings and Recommendations 1. BCREA and DCCED should take timely corrective action in response to ASC findings. 2. The division’s professional licensing administrative officer should take steps to improve administrative support. 3. BCREA and staff within the Office of the Governor should work together to increase the pool of qualified applicants available for board appointments to ensure full …

SUMMARY OF: A Sunset Review on the Department of Public Safety, Alcoholic Beverage Control Board, August 14, 2009 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the Alcoholic Beverage Control Board (ABC Board or the Board) to determine if there is a demonstrated public need for its continued existence and if it has been operating in an effective and efficient manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether the ABC Board should be reestablished. Currently, under AS 44.66.010(a)(1), the Board will terminate on June 30, 2010 and will have one year from that date to conclude its administrative operations. The primary objective of this audit was to determine whether there is a public need for the Board and if its existence should be extended. The secondary objective was to determine if the ABC Board is serving the public interest in regards to licensing/permitting functions, administrative activities, board activities, and enforcement activities by reviewing these major functions for effectiveness and efficiency of operations. Report Conclusions In our opinion, the ABC Board should continue to regulate the manufacture, sale, barter, and possession of alcoholic beverages in Alaska in order to protect the public’s health, safety, and welfare. The Board has demonstrated a need for its continued existence by providing protection to the general public through the issuance, renewal, revocation, and suspension of liquor licenses. Protection has also been provided through active investigation of suspected licensing violations and enforcement of the State’s alcoholic beverage control laws and regulations. With the exceptions noted in the Findings and Recommendations section of this report, the ABC Board is operating in the public interest. However, improvements are needed to improve the effectiveness and efficiencies of its operations. This is the third audit performed in the last seven years in which we have recommended a stronger internal control environment be implemented to include written policies and operating procedures, as well as a strategic plan governing enforcement activities. Although the current director has taken immediate action to make improvements to the ABC Board, we are nonetheless concerned that certain issues in the last three audits have not yet been addressed. Therefore, we recommend that AS 44.66.010(a)(1) be amended to extend the termination date of the Alcoholic Beverage Control Board to June 30, 2014. Findings and Recommendations Recommendation No. 1 The ABC Board members and director should establish quantifiable and objective enforcement goals and develop a clear plan by which they will direct its enforcement resources to most efficiently and effectively accomplish those goals in a verifiable manner. There is no enforcement strategy to prioritize and apply resources in a cohesive fashion to enforce the alcoholic beverage laws. The agency does not know if inspecting and checking half the licenses is a good or bad outcome for their efforts, an effective or efficient use of their resources, or in the best interest of the public. The ABC Board continues to be without a systematic strategy to ensure resources are used effectively and efficiently to enforce the alcoholic beverage laws. The ABC Board members and director should make it a priority to develop and implement goals for enforcement activities that have tangible metrics. Recommendation No. 2 The ABC Board members and director should develop and enforce written policies and procedures to ensure the staff’s compliance with state laws and decisions made by the board and director. There are instances of non-compliance and non-enforcement with state laws, overpayments to municipalities, possible nonpayment of fees by license holders, and incomplete and inaccurate tracking of data. The ABC Board staff’s lack oversight and accountability over their activities to ensure compliance with state laws and decisions made by the board and director. The ABC Board members and director should ensure written policies and procedures are developed, and followed by staff to ensure compliance with state laws and directives from the board and …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Marital and Family Therapy, September 21, 2009. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes, we have reviewed the activities of the Board of Marital and Family Therapy (BMFT). As required by state law, the legislative committees of reference are to consider this report when determining whether to extend the termination date for BMFT. Currently under AS 08.03.010(c)(11), the board will terminate on June 30, 2010. If the legislature does not extend the termination date for the board, BMFT will have one year to conclude its administrative operations. Report Conclusions BMFT should continue to regulate marital and family therapists and associates. Except for the significant issue of postponing regulation changes, the board is operating efficiently and effectively. BMFT is serving the public interest by promoting the competence and integrity of those who provide services to the public as licensed marital and family therapists and associates. The termination date for BMFT should be extended four years – until June 30, 2014. This extension term is half of the eight-year maximum allowed per statute in recognition that BMFT has not met its statutory responsibility for initiating regulation changes. BMFT has not pursued regulation changes because it has been in a deficit position for over 10 years and has not wanted to further weaken its financial position by incurring the costs associated with changing regulation. BMFT’s financial deficit has gradually decreased. The deficit at the beginning of FY 05 was $75,400 versus a deficit of $29,200 at the beginning of FY 09. The deficit has been a continual challenge for the board. The board believes the low number of licenses is the result of the high cost of licensure ($775). There were several deficiencies in the administrative support provided to BMFT by staff within the Department of Commerce, Community, and Economic Development, Division of Corporations, Business and Professional Licensing. Information contained in the annual reports was often inaccurate and incomplete. Methodologies used to account for BMFT revenues and expenditures were inconsistent and, in some cases, inaccurate. These deficiencies were caused by an unqualified staff member and a lack of written procedures for support functions. Findings and Recommendations 1. BMFT should actively pursue regulation changes that are necessary to protect the public interest. 2. The Division of Corporations, Business and Professional Licensing’s professional licensing administrative manager should take steps to improve administrative support. 3. The Office of the Governor should make the necessary appointments to keep BMFT at full …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Professional Counselors, September 30, 2009 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes, we have reviewed the activities of the Board of Professional Counselors (BPC). As required by state law, the legislative committees of reference are to consider this report when considering whether to extend the termination date for BPC. Currently under AS 08.03.010(c)(17), the board will terminate on June 30, 2010. If the legislature does not extend the termination date for the board, BPC will have one year to conclude its administrative operations. Report Conclusions BPC should continue to regulate professional counselors. The board is serving the public interest by promoting the competence and integrity of those who provide services to the public as licensed professional counselors. We recommend the legislature extend the board’s termination date to June 30, 2018. The Department of Commerce, Community, and Economic Development, Division of Corporations, Business and Professional Licensing’s investigation unit did not address all investigations in a timely manner. Investigators inconsistently recorded information in the case management system. Several deficiencies were noted in the administrative support provided to BPC by the division’s staff. The information contained in the annual reports was often inaccurate and incomplete. The methodologies used to account for BPC revenues and expenditures were inconsistent and, in some cases, inaccurate. Furthermore, important information was not forwarded to investigative staff. Findings and Recommendations 1. The division’s professional licensing administrative officer should take steps to improve administrative support. 2. The division’s chief investigator should establish procedures to ensure investigators consistently enter information into the case management system and should take steps to ensure complaints/cases are investigated timely. 3. The division’s professional licensing supervisors should take steps to ensure salient investigative information is forwarded to the investigative section. 4. The Office of the Governor should take steps to make the necessary appointments to keep BPC at full …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community and Economic Development, Board of Social Work Examiners, September 30, 2009 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes, we have reviewed the activities of the Board of Social Work Examiners (BSWE). As required by state law, the legislative committees of reference are to consider this report when considering whether to extend the termination date for BSWE. Currently under AS 08.03.010(c)(6), the board will terminate on June 30, 2010. If the legislature does not extend the termination date for the board, BSWE will have one year to conclude its administrative operations. Report Conclusions BSWE should continue to regulate clinical, master, and baccalaureate social workers. The board is serving the public interest by promoting the competence and integrity of those who provide services to the public as licensed social workers. BSWE continues to enforce and propose changes to regulations to improve BSWE’s effectiveness and ensure that social workers are appropriately licensed. Several deficiencies were noted in the administrative support provided to BSWE staff within the Department of Commerce, Community, and Economic Development Division of Corporations, Business and Professional Licensing. The information contained in the annual reports was often inaccurate and incomplete. The methodologies used to account for BSWE revenues and expenditures were inconsistent and, in some cases, inaccurate. Findings and Recommendations 1. The division’s professional licensing administrative officer should take steps to improve administrative …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Public Accountancy. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statues, we have reviewed the activities of the Board of Public Accountancy (board). As required by AS 44.66.050(a), the legislative committees of reference are to consider this report during the legislative oversight process involved in determining if the board should be reestablished. Currently, AS 08.03.010(c)(1) states that the board will terminate on June 30, 2009. If the legislature does not extend the termination date before then, the board will have one year to conclude its administrative operations. Report Conclusions In our opinion, the termination date for the board should be extended. The board is serving the public interest by effectively licensing and regulating certified public accountants. Moreover, the board is serving the public interest by policing the profession and ensuring that only properly qualified individuals practice in Alaska as certified public accountants. The board has promoted and effectively assisted in updating the statutes governing the practice of public accounting. As statutes were updated, the board produced regulations to further define the new requirements affecting each professional under its purview. When the board discovered omissions in statute that acted to block an avenue to licensure that should have been grandfathered into the new rules, the board immediately requested a legislative “fix” and assisted with testimony during the legislative session in order to mitigate this omission. As a result, fifteen candidates who had been pursuing licensure under the old statute gained a legitimate avenue to become licensed. The board was able to re-establish a Fairbanks site for the certified public accountant exam. However, a site in Southeast Alaska is still out of reach due to cost. The board has also improved the application process to take the Certified Public Accountants exam by contracting for on-line services from the National Association of State Boards of Accountancy. The decision to contract these services has had the added benefit of redirecting staff time to important problem-solving and licensure activities. The board has been proactive in shaping the future of the accounting profession by working with committees of national professional societies that set professional standards. Alaska Statute 08.03.010(c)(1) requires the Board of Public Accountancy be terminated on June 30, 2009. Under AS 08.03.020, if the termination date is not extended by the legislature, the board will have a one-year period to administratively conclude its affairs. Although AS 08.03.020(c) allows the legislature to extend the termination date of the board for up to eight years, we recommend the legislature extend the board’s termination date for four years, to June 30, 2013. This recommendation is offered based on the board’s discussions concerning future services that may be out-sourced, possible changes in board structure and new statutes and regulations that may be pursued in the near future. Findings and Recommendations Recommendation No. 1 Vacant board positions should be filled in accordance with AS 08.04.040. Recommendation No. 2 The board, in concert with the Professional Licensing section, should review current and projected funding needs with the intent of reducing fees. Recommendation No. 3 The Investigation Section should implement an effective case tracking …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Veterinary Examiners. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes, sunset legislation, we have reviewed the activities of the Board of Veterinary Examiners to determine if there is a demonstrated public need for the its continued existence and if it has been operating in an efficient and effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether the board should continue to exist. Report Conclusions Under AS 08.03.010(c)(21), the Board of Veterinary Examiners (BVE or board) will terminate on June 30, 2009. If the legislature does not take action to extend the board’s termination date, AS 08.03.020 provides that the board will have one year in which to conclude its administrative operations. The regulation and licensing of veterinarians and veterinary technicians benefits the public. BVE has demonstrated an ability to conduct its affairs in an efficient manner. The board continues to propose changes to regulations to improve the effectiveness of the board and ensure that veterinarians and veterinarian technicians licensed in the State of Alaska are competent and capable of maintaining the integrity of the profession. In our opinion, the termination date of Board of the Veterinary Examiners should be extended to June 30, 2017. Findings and Recommendations Recommendation No. 1 The Department of Commerce, Community and Economic Development, Division of Corporations, Business and Professional Licensing, in conjunction with the Board of Veterinary Examiners, should review licensing fees as provided by statute and consider decreasing fees. The Office of the Governor should fill vacant seats on the Board of Veterinary Examiners in a timely …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development State Board of Registration for Architects, Engineers, and Land Surveyors. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes, sunset legislation, we have reviewed the activities of the State Board of Registration for Architects, Engineers, and Land Surveyors (BRAELS or board). The purpose of this audit was to determine if there is a demonstrated public need for the continued existence of the board. Report Conclusions Under AS 08.03.010(c)(3), the State Board of Registration for Architects, Engineers, and Land Surveyors will terminate on June 30, 2009. If the legislature does not take action to extend the board’s termination date, AS 08.03.020 provides that the board will have one year in which to conclude its administrative operations. In our opinion, the termination date for the board should be extended. BRAELS serves a public purpose and has demonstrated an ability to conduct its business in a satisfactory manner. The registration of qualified architects, engineers, land surveyors, and landscape architects benefits the public’s safety and welfare. We recommend that the legislature extend the termination date of the board until June 30, 2017. Findings and Recommendations Recommendation No. 1 The Department of Commerce, Community, and Economic Development Division of Corporations, Business, and Professional Licensing, in conjunction with BRAELS, should review registration fees as provided by statute and consider decreasing fees. The director of Corporations, Business, and Professional Licensing should ensure that BRAELS registrants that are Corporations, Limited Liability Companies (LLC’s), and Limited Liability Partnerships (LLP’s) are licensed in accordance with state regulations. The Office of the Governor should fill vacant seats on the State Board of Registration for Architects, Engineers, and Land Surveyors in a timely …

SUMMARY OF: A Sunset Review of the Board of Governors of the Alaska Bar Association, November 4, 2008. Purpose of the Report In accordance with the intent of Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have performed a review of the activities of the Board of Governors of the Alaska Bar Association (board). The purpose of this audit was to determine if there is a demonstrated public need for the continued existence of the board. There are four objectives of our report. They are: To determine if the termination date for the board should be extended. To determine if the board is operating in the public’s interest. To determine if the board has exercised appropriate oversight of licensed members of the Alaska Bar Association. To provide a current status on the recommendations made in the prior report. Report Conclusions In our opinion, the termination date of the Board of Governors of the Alaska Bar Association should be extended. The regulation and licensing of qualified attorneys contributes to the protection of the public’s welfare. The board, through the Alaska Supreme Court, protects the public by ensuring that persons licensed to practice law are qualified. It also provides for the investigation of complaints and has established a disciplinary process designed to promote licensed individuals to act in a competent and professional manner. Chapter 58, SLA 2005 amended AS 08.03.020(c) to increase from four to eight years the period for which a board scheduled for termination may be continued or reestablished by the legislature. As such, we recommend that the legislature extend the termination date of the board to June 30, 2017. We have also made recommendations that, if implemented, will improve the effectiveness of the board’s goals and operations. See the Findings and Recommendations section of this report. Findings and Recommendations The board’s prior sunset audit reported several administrative weaknesses. One of those recommendations has been resolved. The unresolved issues are reiterated in this report. The board should recommend to the Alaska Supreme Court that mandatory minimum continuing legal education (CLE) for attorneys be adopted..The board voted at their September 7, 2006 meeting to send the mandatory CLE rule, as published, to the Alaska Supreme Court. Based on this rule, the Alaska Supreme Court amended Alaska Bar Rule 65 through Supreme Court Order No. 1640, to require all members to complete three credit hours of mandatory ethics continuing legal education (MECLE) per year. The mandatory ethics requirement does not fully achieve the goal of promoting competency and professionalism in members of the Alaska Bar Association (Bar). Although ethics education is part of the goal, requiring CLE as opposed to encouraging voluntary legal education will strengthen the public’s confidence that attorneys are professional and competent. The board should consider developing a database of disciplined lawyers in the Bar’s website.Although some steps have been taken in response to this recommendation, attorney discipline information is not yet available via link from the Bar’s website. We continue to believe the board should develop a database of disciplined lawyers to which the public is provided access via the Bar’s website. The board should adhere to existing public notice requirements for all meetings or modify the bylaws to clearly address conference call board meeting procedures and public notice …

SUMMARY OF: A Sunset Review of the Statewide Suicide Prevention Council, Department of Health and Social Services, November 4, 2008. Purpose of the Report In accordance with Titles 24 and 44 of the Alaska Statutes, we have reviewed the activities of the Statewide Suicide Prevention Council (SSPC or council) to determine if there is a demonstrated public need for its continued existence and if it has been operating in an efficient and effective manner. Report Conclusions Overall, we found that the council is operating in the public interest and spearheading efforts that are necessary to address the public health concern of suicide. Therefore, we recommend the legislature extend the termination date of the council to June 30, 2013. The four year extension is recommended because of issues discussed in the Findings and Recommendations. Findings and Recommendations The council’s prior audit contained four recommendations. Three of the four recommendations have either been resolved or are no longer current issues. The prior recommendation regarding timely appointments to the council is re-addressed below as Recommendation No. 2. Recommendation No. 1 TSSPC should, in accordance with statutes, appoint its own coordinator and perform annual performance reviews. The current SSPC coordinator was not appointed in accordance with the statutes. Effective July 1, 2008, the Department of Health and Social Services (DHSS) assigned SSPC coordinator responsibilities to the Prevention and Early Intervention section manager in the Division of Behavioral Health (DBH). This SSPC coordinator appointment was not made in accordance with the statutes and appears to diminish SSPC’s autonomy and independent voice with the governor and legislature. We recommend that the council either accept the current coordinator through a formal vote or initiate actions to hire a new coordinator. In addition, it is critical that the council conduct annual performance evaluations as required by statute, particularly if the coordinator is a DBH employee. Only through the council’s interest in remaining autonomous can its independent voice be assured. Recommendation No. 2 The legislature should consider modifying the composition of council membership.. The composition of the council’s membership is established in AS 44.29.300 and includes very specific qualifications which have created difficulties in filling the positions. Vacancies combined with low attendance rates make it difficult for the council to establish a quorum at its meetings. The legislature should consider changes to AS 44.29.300 to broaden the qualifications of council members to ensure that appointees are interested in the work of the council and can make the time commitment necessary to serve. Additionally, consideration should be given to making legislative members non-voting to prevent potential quorum …

SUMMARY OF: A Sunset Review of the Department of Health and Social Services, Alaska Commission on Aging, July 3, 2007. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the Alaska Commission on Aging. Under AS 44.66.010(a)(4), the Alaska Commission on Aging (ACoA or commission) will terminate on June 30, 2008. If the legislature does not take action to extend the termination date, the commission will go into a wrap-up year to conclude its affairs and will terminate on June 30, 2009. The purpose of this audit is to determine if there is a demonstrated public need for the continued existence of the commission. Report Conclusions In our opinion, the Alaska Commission on Aging is helping older Alaskans lead dignified, independent, and productive lives. We recommend the legislature adopt legislation extending ACoA’s termination date to June 30, 2016 Findings and Recommendations The legislature should consider amending state law to reflect ACoA’s current mission. The grant administration responsibilities for ACoA, as defined in state law [1], are no longer performed by the commission; rather, these duties are now being done by the Department of Health and Social Services (DHSS), Division of Seniors and Disabilities Services (DSDS). However, Alaska statutes have not been updated to accurately reflect these changes. As a result, ACoA has not accomplished some of its statutory duties and responsibilities as currently written. The ACoA chairman and DHSS’ commissioner should pursue changes to Alaska statutes so they are reflective of ACoA’s current role.   [1] AS 47.45.24(a)(7-8), AS 47.65.010-050, and AS …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Real Estate Commission, July 3, 2007. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the Real Estate Commission (REC or commission). As required by state law, the legislative committees of reference shall consider this report during the legislative oversight process to determine whether the commission should be reestablished. Currently, AS 08.03.010(c)(19) states that the commission will terminate on June 30, 2008, and will have one year from that date to conclude its administrative operations. Report Conclusions In our opinion, the Real Estate Commission is serving a public purpose and has demonstrated an ability to operate in a satisfactory manner. The regulation and licensing of real estate professionals provides necessary public protection in the buying and selling of residential and commercial properties. The commission carries out its responsibilities to educate both the public and licensees in a professional, competent, and efficient manner. Additionally, active investigation of complaints and licensure actions, when appropriate, provides assurance that licensed professionals are competent and ethical. In accordance with AS 08.03.010(c)(19), REC is scheduled to terminate on June 30, 2008. Under AS 08.03.020, the commission has one year after its termination date to administratively conclude its affairs. We recommend the legislature extend the commission’s termination date to June 30, 2016. Findings and Recommendations Prior Audit Recommendation No. 1 The legislature should consider amending the statutes related to the Real Estate Surety Fund (RESF) to provide more complete, effective, and efficient consumer protection to claimants. In the prior sunset review we recommended: 1) the maximum claim limit for individual and aggregate claims reimbursed by the RESF be increased; 2) modify the appeal notification requirements of licensees involved in a claim from a “need to locate and notify” to “making a good faith effort to locate” the licensee; and 3) mobile home transactions be subject to RESF claims when licensed real estate professionals are involved. This recommendation was partially implemented. Individual claims for reimbursement were raised from $10,000 to $15,000 and the appeal notification standard, for licensees involved in RESF claims, has been changed to making a good faith effort to locate. We recommend that the legislature consider raising the maximum aggregate claim amount as well as making mobile home transactions subject to RESF claims when licensed real estate professionals are involved. Recommendation No. 2 The director of Boards and Commissions, Office of the Governor, should verify board members satisfy all statutory requirements prior to being appointed. During 2007, a board member was appointed to the commission without meeting the professional experience requirements outlined in statute. Alaska Statute 08.88.041(a) requires brokers and associate brokers to be licensed in Alaska for at least three years before being appointed to the commission. This board member was an associate broker for less than two years prior to his appointment. Recommendation No. 3 The division should increase licensing fees to eliminate the commission’s current operating deficit. As of May 31, 2007, the commission had an operating deficit of $147,211. The deficit is caused by revenues not covering all of the commission’s expenditures for a two-year licensing period. Alaska Statute 08.01.065(c) requires fees, for an occupation, be set at a level to approximate the related regulatory …

SUMMARY OF: A Sunset Review of the Department of Corrections, Board of Parole, August 28, 2007. Purpose of the Report In accordance with the intent of Titles 24 and 44 of the Alaska Statutes, we reviewed the activities of the Board of Parole to determine if the board is operating in the best interest of the public and carries out a public purpose. As required by AS 44.66.050(a), the committee of reference is to consider this report during the legislative oversight process as it determines whether the board should be reestablished, or for how the long the termination date for the board should be extended. Currently, under AS 44.66.010(a)(2) the board will terminate on June 30, 2008, and will have one year from that date to conclude its affairs. Report Conclusions Under AS 33.16, the Board of Parole serves as the parole authority for the State. As such, the board fulfills the Alaska Constitution requirement that the State establish a parole system. The board’s primary responsibilities include determining a prisoner’s suitability for discretionary parole and setting conditions for individuals receiving parole. Another major responsibility of the board is the holding of parole revocation hearings. The board conducts its business in a professional manner. Although we have concerns about the board’s accessibility to the general public and accountability over how effectively it is operating (see Recommendation No. 1), we believe there is a demonstrated public need for the Board of Parole. Accordingly, the termination date of the board should be extended. Currently, the board is scheduled to terminate operations on June 30, 2008. If the legislature does not extend the termination date for the board, it will have one year from that date to conclude operations. We recommend that the legislature extend the board’s termination date to June 30, 2016. Findings and Recommendations The Board of Parole should increase public accessibility to, and accountability for, its administrative actions and operations.For more than four years, the board has not had a meeting that provided an opportunity for the public to observe or comment on the board’s activities. Additionally, since 2001 the board has not formally issued a statistical report summarizing how effective the board has been at achieving operating objectives.The board should improve its accessibility and accountability to the public in two important ways: The board should hold a general session meeting, open to the public, at least once a year. The board should periodically report on its activities and the results of those activities to the legislature and the Office of Management and Budget. Such actions would assist the board in: improving public accessibility, increasing accountability, improving its administration, and achieving greater compliance with operational expectations reflected in state law. Prior Audit Recommendations The following two prior audit recommendations have both been appropriately resolved and addressed: The Board of Parole should develop a formal Memorandum of Understanding (MOU) with the Department of Corrections to formally reflect the de facto partial “delegation” of the board’s responsibilities under statute for the notification of victims of their right to comment at parole hearings. The board should seek reauthorization from the governor for compensation of board members. Such reauthorization should be structured in a manner that accurately reflects the tasks performed by the Board of Parole.The following prior audit recommendation has been partially implemented, and improvements were apparent in this review: The board should initiate procedures that allow for a review of the risk assessment form to ensure that all mathematical calculations are performed …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Big Game Commercial Services Board, August 16, 2007. Purpose of the Report In accordance with Titles 24 and 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the Big Game Commercial Services Board (board) to determine if there is a demonstrated public need for its continued existence and if it has been operating in an efficient and effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether the board should be reestablished. Currently, AS 08.03.010(c)(22) states that the board will terminate on June 30, 2008 and will have one year from that date to conclude its administrative operations. Our report objectives were as follows: To determine whether there is a public need for the board and if its existence should be extended. To review the board’s major functions of licensing and investigations for effectiveness in meeting public need and for efficiency of operation. Report Conclusions In our opinion, the termination date of the board should be extended. The board has demonstrated a need for its continued existence for regulating and licensing qualified, registered guide-outfitters and transporters which benefits the public’s safety and welfare as well as protection of the state’s wildlife resources. The board has also successfully developed and adopted regulatory changes to improve the big game commercial services industry in Alaska. As indicated in the Analysis of Public Need section of this report, the board has met the various statutory sunset criteria, generally, in an effective and efficient manner; exceptions are discussed in the Findings and Recommendations section. In our opinion, the board serves an important public purpose. Based on the operational deficiencies identified and the limited time the board has functioned since reinstatement, we recommend the board continue in statute and its termination date be extended for four years until June 30, 2012. Findings and Recommendations The director of the Division of Corporations, Business, and Professional Licensing (DCBPL) should ensure division staff adheres to statute, regulations, and policy and procedures for efficient and effective support of the board’s day-to-day operations. The division’s director should ensure case management procedures are adhered to by staff to accurately reflect case status on the case management system in support of the board’s operations. The board and the division should review licensing fees and regulatory costs, and increase fees to cover the annual operating costs to eliminate the anticipated deficit. At the end of FY 07, the board had an estimated operating deficit of $52,000. The board should make appropriate changes to regulations which require proof of current first aid certification for all guide-outfitters, under board purview, for both initial and renewed licenses. The board should cease the electronic accumulation of information gathered from hunt records and transporter reports. Staff resources were ill-spent recording historic licensee reports into an electronic database. The cost versus the benefit of capturing information from reports is …

SUMMARY OF: A Sunset Review Follow Up of the Board of Governors of the Alaska Bar Association, November 28, 2005, (Audit Control No. 41-20040-06), September 15, 2006. Purpose of the Report In accordance with the intent of Title 24 and Title 44 of the Alaska Statutes (sunset legislation), and a special request from the Legislative Budget and Audit Committee, we have performed a follow up of our prior audit, Board of Governors of the Alaska Bar Association, November 28, 2005, (Audit Control No. 41-20040-06). There are three specific objectives of our report. They are: To provide a current status on the recommendations made in the prior report. To provide updated financial and occupational statistics information. To provide information on organizational, budgeting/appropriation, and disciplinary structure alternatives existing in other states. In addition, we will report anything that comes to our attention during this review that would change our prior report conclusions and analysis of public need. Report Conclusions The objective of our prior audit, Board of Governors of the Alaska Bar Association, November 28, 2005, (Audit Control No. 41-20040-06) was to determine if the Board of Governors of the Alaska Bar Association (Board) should continue to exist, primarily based on the results discussed in the Analysis of Public Need section of the report. The conclusion of the prior report was that the termination date of the Board of Governors of the Alaska Bar Association should be extended. Nothing came to our attention during our current assessment that would give rise to a change in our conclusion or recommendation to extend the termination date until June 30, 2014. In response to the specific objectives of this audit, we have reiterated and provided a current status of the three recommendations made in our prior audit, Board of Governors of the Alaska Bar Association, November 28, 2005, (Audit Control No. 41-20040-06). These recommendations, if implemented, will improve the effectiveness of the Board’s goals and operations. We have also incorporated the financial information and occupational statistics, from Appendices A, B, C, and D in our prior audit, with updates for more current periods and more recent activities. See Appendices A, B, C, and D of this report. And finally we have included, for discussion, information on possible organizational alternatives from a limited review of other states in the Additional Auditor Comments section of this report. Findings and Recommendations The Council’s prior sunset audit reported several administrative weaknesses. Two of those recommendations have been resolved. Those issues that have not been resolved are reiterated in this report. The Board should recommend to the Alaska Supreme Court that mandatory minimum continuing legal education (CLE) for attorneys be adopted.The Board voted at their September 7, 2006 meeting to send the mandatory CLE rule, as published in April 2006, to the Alaska Supreme Court. In effect, they have now implemented our prior recommendation. The Board should consider developing a database of disciplined lawyers in the association’s website.Although some steps have been taken in response to this recommendation, attorney discipline information is not yet available via link from the Alaska Bar Association website. We continue to believe the Board should develop a database of disciplined lawyers to which access is provided the public via the association’s website. We encourage continued efforts in this area. The Board should adopt a due date for the annual report to ensure it is made available to the Supreme Court, the legislature and the public on a timely basis.The Board voted at their September 7, 2006 meeting to amend their Standing Policies to set April 15 as the due date for the completion of the preceding year’s annual report. In effect, they have now implemented our prior …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Certified Direct-Entry Midwives, September 11, 2006. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the Board of Certified Direct-Entry Midwives (board). As required by state law, the legislative committees of reference shall consider this report during the legislative oversight process to determine whether the board should be reestablished. Currently, AS 08.03.010(c)(8) states that the board will terminate on June 30, 2007, and will have one year from that date to conclude its administrative operations. Report Conclusions In our opinion, the termination date for the Board of Certified Direct-Entry Midwives should be extended. The board is operating in the public interest by promoting the competence and integrity of those who hold themselves out to the public as qualified and competent direct entry midwives. The board proposes changes to regulations to improve its effectiveness and to ensure that midwives and apprentice midwives are licensed in the State of Alaska. Alaska Statute 08.03.010(c)(8) requires that the Board of Certified Direct-Entry Midwives be terminated on June 30, 2007. Under AS 08.03.020, the board has a one-year period to administratively conclude its affairs. We recommend that the legislature extend the board’s termination date until June 30, 2015. Analysis of Public Need Since inception of the board in 1992, biennial licensing fees for this occupation have increased significantly. During this audit review period, the biennial licensing fees increased 55% to $2,088 and are not expected to decease for the next licensing period. Currently, the licensing fees established for this board are the highest of any other licensed profession. The fees are high because of the limited number of licensed midwives and unpredictable legal and investigative costs. High licensing fees may, to some individuals, represent a barrier of entry into a profession. However, licensing data for this board shows that fees have not stopped the growth in the number of individuals being licensed as midwives or entering into the apprenticeship program. As long as licensing fees remain high, the board should monitor for any substantial negative impact the fees have on the number of direct-entry midwives practicing in …

SUMMARY OF: A Sunset Review of the Department of Public Safety, Alcoholic Beverage Control Board, August 31, 2006. Purpose of the Report In accordance with Titles 24 and 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the Alcoholic Beverage Control Board (ABC Board or the board) to determine if there is a demonstrated public need for its continued existence and if it has been operating in an efficient and effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether the ABC Board should be reestablished. Currently, under AS 44.66.010(a)(1), the board will terminate on June 30, 2007 and will have one year from that date to conclude its administrative operations. Our report objectives were as follows: To determine whether there is a public need for the board and if its existence should be extended. To review the board’s major functions of licensing, inspections, and investigations for effectiveness in meeting public need and for efficiency of operation Report Conclusions In our opinion, the termination date of the ABC Board should be extended. The board should continue to regulate the manufacture, sale, barter, and possession of alcoholic beverages within the State of Alaska in order to protect the public’s health, safety, and welfare. The board has demonstrated a need for its continued existence by providing protection to the general public through the issuance, renewal, revocation, and suspension of liquor licenses. Protection has also been provided through active investigation of suspected licensing violations and enforcement of the state’s alcoholic beverage control laws and regulations. As indicated in the Analysis of Public Need section of this report, the ABC Board has met the various statutory sunset criteria. With the exceptions noted in the Findings and Recommendations section of this report, the board is effectively and efficiently meeting its statutory responsibilities and is operating in the public interest. Beginning FY 04, the board was reorganized under the Department of Public Safety and improvements have been made in the regulatory aspect of the board’s operations. However, the board lacks an overall strategy for accomplishing its enforcement goals. In addition, certain operational improvements are needed to allow for greater public participation and to improve the overall efficiency with which the board performs its administrative functions. We recommend that Alaska Statute 44.66.010(a)(1) be amended to extend the termination date of the Alcoholic Beverage Control Board to June 30, 2013. Findings and Recommendations The ABC Board and director should strengthen the control environment over alcohol regulatory functions. Internal controls at the ABC offices are weak in a number of areas including the licensing and permitting functions, revenue sharing payments, licensee fee collection activities (including wholesaler fee collections), and the licensing database. Weaknesses are due to the lack of well-designed controls and/or the circumvention and neglect of established controls. The ABC Board and director should develop and implement an overall plan for enforcement activities to ensure the effective allocation of their resources. The ABC Board lacks a systematic strategy for scheduling inspections and compliance checks to ensure effective enforcement. Increase in the number of regulatory inspections has not resulted in a significantly greater percentage of licensees being inspected. The ABC Board director should ensure compliance with public notice requirements and establish procedures to ensure board meeting records are complete and accurate. Board meetings were not consistently advertised, affected parties were not promptly notified of statutory and regulatory changes, and the board minutes were inadequately documented. The legislature should consider amending Title IV to remove the voting ability of the board’s director. To ensure an appropriate balance of government, the legislature should amend AS 04.06.060 to remove the director’s voting ability. Auditor Comments The legislature may want to reevaluate the general wholesales license fee structure. The ABC Board could assist by proposing new volume fee brackets that take into consideration the current and projected future sales. The statutory structure for general wholesale license fees is based on a progressive tax rate; however, because of the increase in the sales volumes of the wholesalers, the licensee fee structure is actually regressive. Wholesale volume fees have not changed since 1980. Alcohol sales are increasing at a much faster rate than the volume fees collected. The current structure has a regressive effect and puts low-volume wholesalers at a competitive …

SUMMARY OF: A Special Report on the Department of Commerce, Community, and Economic Development, Board of Marine Pilots, Sunset Review, October 13, 2006. Purpose of the Report In accordance with Titles 24 and 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the Board of Marine Pilots (BMP or the board) to determine if there is a demonstrated public need for its continued existence and if it has been operating in an efficient and effective manner. As required by AS 44.66.050(a), this report shall be considered by the committee of reference during the legislative oversight process in determining whether BMP should be reestablished. Currently, under AS 44.66.010(a)(1), the board will terminate on June 30, 2007 and will have one year from that date to conclude its administrative operations. Our report objectives were as follows: To determine whether there is a public need for the board and if its existence should be extended. To review the board’s major functions of licensing, inspections, and investigations for effectiveness in meeting public need and for efficiency of operation Report Conclusions In our opinion, BMP serves an important public purpose. The termination date of BMP should be extended for six years until June 30, 2013. Under AS 08.03.010(10), BMP will terminate on June 30, 2007. If the legislature does not take action to extend the board’s termination date, then AS 08.03.020 provides the board one year in which to conclude its administrative operations. The regulation and licensing of qualified marine pilots benefit the public’s safety and welfare as well as protection of the environment. The board provides reasonable assurance that the individuals licensed to pilot passenger and cargo ships in Alaskan waters are qualified to do so. However, over the past four years the board has been hindered in effectively executing its statutory requirement to arbitrate over the rate setting process. Findings and Recommendations BMP’s administration of the mandatory drug and alcohol testing is still not consistent with established regulatory standards and needs improvement. Specifically, BMP should establish more informative and comprehensive reporting requirements so that the marine pilot coordinator (MPC) can confirm that an appropriate number of licensed pilots are consistently being subjected to random testing. BMP should take a more active role in administering the drug testing program. Procedures and processes should be established through enhanced regulations to clarify the role of the pilot associations in meeting compliance requirements. Additionally, the board, through the MPC should actively monitor the pilot associations. BMP should propose mandatory random drug testing regulations over trainees and apprentices seeking a Deputy Marine pilot’s license. Further, BMP should establish procedures to ensure adequate coverage of the marine pilot coordinator’s critical investigation functions during a vacancy or extended periods of absence. The board should also consider changes to continuing professional education. Additionally, the legislature should consider statutory changes to direct the usage of pleasure craft exemption fees. AUDITOR COMMENTS BMP and the Department need to consider alternatives available to remedy difficulties the board has encountered with rate setting. Rate setting has hindered the efficiency of board operations and has increased legal costs incurred by the State on behalf of the board. Conflicting public policy in statute is as follows: Inherent in this makeup is a balance of licensed pilots with an equal number of industry members. The legislature also specifically exempted the board from the Administrative Procedures Act (AS 44.62) resulting in the responsibility of hearing rate setting issues being retained by the board and not automatically assigned to an administrative law judge when there is a dispute. Application of Alaska’s Executive Branch Ethics Act (AS 39.52) has caused a disruption of the voting balance on rate setting …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, State Medical Board, October 3, 2006. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the State Medical Board (board). As required by state law, the legislative committees of reference shall consider this report during the legislative oversight process to determine whether the board should be reestablished. Currently, AS 08.03.010 (c)(12) states that the board will terminate on June 30, 2007, and will have one year from that date to conclude its administrative operations. Report Conclusions In our opinion, the termination date for the State Medical Board should be extended. The regulation and licensing of qualified physicians and other health care professionals is essential to protecting the public’s health, safety, and welfare. State health care consumers rely on the diligence of the board and staff to promote the provision of quality health care. The board serves this public interest by establishing minimum educational and work experience requirements that individuals must meet to become licensed physicians, osteopaths, podiatrists, paramedics and physician assistants. The board further serves this public interest by investigating complaints against licensed professionals and taking disciplinary licensing action when appropriate. The board has satisfactorily carried out its responsibilities in a manner consistent with statutes, good administrative practice, and the public interest. Alaska Statute 08.03.010(c)(12) requires that the State Medical Board be terminated on June 30, 2007. Under AS 08.03.020, the board has a one-year period to administratively conclude its affairs. We recommend that the legislature extend the board’s termination date until June 30, 2013. Findings and Recommendations Recommendation No. 1 The board should update regulatory language to reflect current license-by-examination practices Current license by examination practices are not in accordance with regulatory language. Regulation 12 AAC 40.020(a) reads “[T]he written examination is administered twice yearly in Alaska … .” However, candidates may sit for the computerized examination up to three times within a 12-month period. The State Medical Board has contracted with the Federation of State Medical Boards (FSMB) to administer the computerized examination. Candidates schedule testing directly with FSMB and may test at any time throughout the year at an approved testing center. Due to other pressing matters, updating the regulatory language has not been a priority of the board. Outdated regulatory language is misleading to readers seeking information regarding licensing procedures in the State of Alaska. As such, 12 AAC 40.020(a) should be updated to reflect current examination …

SUMMARY OF: A Sunset Review of the Department of Public Safety, Council on Domestic Violence and Sexual Assault, November 23, 2005. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the Council on Domestic Violence and Sexual Assault (Council). The purpose of this audit was to determine if there is a demonstrated public need for the continued existence of the Council. Report Conclusions Aside from the operational concerns addressed in this report, the Council is serving a public need and is operating in the public’s interest. Currently, AS 44.66.010(a)(5) requires the Council to be terminated on June 30, 2006. We recommend the legislature extend the Council’s termination date to June 30, 2014. Findings and Recommendations The Council’s prior sunset audit reported several administrative weaknesses. Two of those recommendations have been resolved. Those issues that have not been resolved are reiterated in this report. Recommendation No. 1. The Council should address its statutory responsibilities to consult with the Department of Education and Early Development and the Department of Health and Social Services. Alaska Statute 18.66.050(3) and AS 18.66.050(12) discuss the Council working with state departments, to develop standards and procedures and education programs. However, due to limited staffing and the Council’s focus on grant maintenance and monitoring, the Council has been unable to fully address these statutory mandates. Given the significance of these mandates, we recommend that the Council take immediate action and implement procedures to address both statutes. Recommendation No. 2. The legislature should amend the Council on Domestic Violence and Sexual Assault’s statutes related to appointment of council members. Since the last audit, AS 18.66.020 has not been revised and the Alaska Network on Domestic Violence and Sexual Assault (Network) continues to get funding from the Council. However, of the last five public members appointed to the Council, only two were recommended by the Network. To avoid any appearance of a conflict of interest between public member appointments and receiving funding, we continue to recommend that the legislature amend AS 18.66.020 to: (1) eliminate the mandate for the Network to recommend individuals to the governor for appointment to the council, and (2) eliminate the requirement for the governor to consult with the Network on the appointment or reappointment of the council’s public …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Regulatory Commission of Alaska, October 20, 2006. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the Regulatory Commission of Alaska (RCA or commission). Under AS 44.66.050(a), the legislative committees of reference are to consider this report during the legislative oversight process to determine whether the commission should be reestablished. Currently, AS 44.66.010(a)(3) requires the commission to terminate on June 30, 2007. If the legislature takes no action to extend the termination date, the commission will have one year from that date to conclude its operations. Report Conclusions In our opinion RCA meets a valid public policy need and is serving Alaskans by: (1) assessing the capabilities of utility and pipeline companies to safely and capably serve the public; (2) evaluating tariffs and charges made by regulated entities; (3) verifying the pass-through charges to consumers from electric and natural gas utilities; (4) adjudicating disputes between ratepayers and regulated entities; (5) providing consumer protection services; and, (6) performing financial review for the State’s power cost equalization program. RCA has demonstrated the commission serves a public need. Under AS 44.66.010(a)(3), RCA is scheduled to terminate June 30, 2007. We recommend the legislature adopt legislation extending RCA’s termination date to June 30, 2015. Findings and Recommendations In our previous sunset audit we made three recommendations. The first recommendation was for RCA to propose legislation to clarify statutes imposing statutory timelines on certain proceedings. In legislation extending the termination date for RCA, the legislature adopted statutes setting specified timelines for the commission to follow in making certain kinds of decisions. The statutory timelines apply to about half of the regulatory decisions made by the commission. In Recommendation No. 1 of this review, we recommend the commission consider adopting further timelines for other actions not covered in statute. A second recommendation stated RCA’s chair should ensure that publication of notices of formal proceedings is monitored. While there are still some operational deficiencies with ensuring all public notices have appropriately been made, RCA consistently meets basic public notice requirements related to its decision making process. The concerns related to this prior audit recommendation have substantially been addressed. The third prior recommendation suggested RCA either require smaller water and sewer utilities to be certificated or establish a meaningful exemption system by regulation. RCA adopted the necessary regulations in February 2004. The following recommendation is based on the current sunset review. Recommendation No. 1 RCA should proceed with the development of regulations that would enhance the efficiency, accountability, and transparency of the commission’s decision making process. In late 2004, RCA held public meetings that invited comments on possible regulation changes that would improve the way in which the commission operated. In the early part of 2005, based on comments from staff in addition to those received from regulated utilities and pipeline companies at the 2004 meetings, RCA adopted a regulation projects plan. This work plan is reviewed on a regular basis. Many of the projects would establish more accountability standards for RCA operations. In the course of our review, we identified three areas where adoption of regulations would promote improved efficiency, accountability, and transparency of RCA’s decisions. All areas we identified for improvement were included in the commission’s 2005 regulation projects plan – although, as of the date of this report, the commission has not started the process of developing the necessary regulations. Our identified improvement areas include: (1) establishment of additional timelines; (2) adoption of rules related to discovery; and, (3) defining when a record is considered complete and the given timeline starts. The commission has been very proactive in soliciting feedback from the public, and the utility and pipeline companies, which are involved with RCA on an ongoing basis. While this process has identified key areas where RCA could improve its operations, the priority for implementation has to date been given to other matters. For the three issues discussed—directly related to promoting efficiency, accountability, and transparency of RCA’s decision making—we recommend that the commission take the next step and schedule the necessary hearing …

SUMMARY OF: A Sunset Review of the Department of Natural Resources, Alaska Seismic Hazards Safety Commission, October 22, 2004 Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes, we have reviewed the activities of, and circumstances surrounding, the Alaska Seismic Hazards Safety Commission (ASHSC). As required by AS 44.66.050(a), the legislative committees of reference are to consider this report during the legislative oversight process involved in determining if the commission should be reestablished. Currently, AS 44.66.010(a)(21) states that the commission will expire on June 30, 2005. If the legislature does not extend the termination date for the commission, ASHSC will have one year to conclude its administrative operations. Report Conclusions Under state law, the burden of demonstrating a continuing public need for a given board, commission, or agency that is subject to termination rests with the entity subject to sunset review [1]. Accordingly, since the commission has not been active since it was created in 2002, it is difficult to make the argument there is a demonstrated public need for the commission’s termination date to be extended. Since there is no functioning commission, we recommend that the legislature not extend the termination date of the commission. By not extending the termination date, the commission will have one year to administratively conclude its operations, and will cease to exist at June 30, 2006. When the commission was created it received overwhelming support from the legislature. Additionally, other western states that are prone to earthquakes have created boards and commissions with duties similar to that of ASHSC. If there is legislative interest in continuing the commission, we offer a recommendation regarding ASHSC’s composition that would enhance its operational effectiveness. Findings and Recommendations Recommendation No. 1 The legislature should consider, if it extends the termination date of the Alaska Seismic Hazards Safety Commission, altering the composition of the board to provide more representation of local government. Much of the testimony heard in support of the commission’s enabling legislation stressed the importance of communicating policy and possible mitigation measures that could be taken by all levels of government. A major area of concern involved the development of local community zoning ordinances and building code requirements to minimize the impact that the seismic shock would have on residential, government, and commercial buildings. We contacted numerous local government building officials in the State regarding how the recommendations of the Alaska Seismic Hazard Safety Commission could be put in place through local building codes. Most communities have a building code advisory commission that makes recommendations about local construction codes. A modification of the code generally involves making local exceptions to the “standard” code, which most communities have adopted by reference. The commission would benefit from additional representation by local government for two primary reasons: The mitigation of seismic hazards refers to studying, identifying, and prioritizing actions that could be taken to reduce the impact of earthquakes. The most cited tangible mitigation measure has been modification of zoning and building codes. Accordingly, the actual implementation of many of the commission’s earthquake mitigation recommendations would have to be done by local governments. Having local representatives as part of the commission may facilitate the implementation of the commission’s recommendations. Many local governments adopted the International Building Code (IBC) and have, therefore, already been involved in deciding if they believe it is in the public’s interest to update local codes in conformity with IBC changes. Having more local government members would bring, to the commission, a sense of the local concerns about adding or modifying existing local ordinances for improved earthquake mitigation factors.   Footnote: 1 – AS 44.66.050(b) states During a public hearing, the board, commission or agency shall have the burden of demonstrating a public need for its continued existence or the continuation of the program, and the extent to which any change in the manner of exercise of its functions or activities may increase efficiency of administration or operation consistent with the public interest. [emphasis …

SUMMARY OF: A Sunset Review of the Alaska Court System, Board of Governors of the Alaska Bar Association, November 28, 2005. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes, we have reviewed the activities of the Board of Governors of the Alaska Bar Association (Board). As required by AS 44.66.050(a), the legislative committees of reference are to consider this report during the legislative oversight process involved in determining if the Board should be reestablished. Currently, AS 08.03.010(c)(2) states that the Board will terminate on June 30, 2006. If the legislature does not extend the termination date, the Board will have one year to conclude its administrative operations. Report Conclusions In our opinion, the termination date for the Board of Governors of the Alaska Bar Association should be extended. The Board, through the Supreme Court, protects the public by ensuring that persons licensed to practice law are qualified. It also provides for the investigation of complaints and has established a discipline process designed to ensure that those licensed act in a competent and professional manner. Alaska Statute 08.03.010(c)(2) requires that the Board of Governors of the Alaska Bar Association be terminated on June 30, 2006. Under AS 08.03.020, the board has a one-year period to administratively conclude its affairs. We recommend the legislature extend the Board’s termination date to June 30, 2014. Findings and Recommendations The Council’s prior sunset audit reported several administrative weaknesses. Two of those recommendations have been resolved. Those issues that have not been resolved are reiterated in this report. Recommendation No. 1. The Board should recommend to the Alaska Supreme Court that mandatory minimum continuing legal education (CLE) for attorneys be adopted. Continuing legal education for attorneys is only voluntary rather than required. The Supreme Court adopted a voluntary CLE under Bar Rule 65 in 1999. It encouraged all active members of the Alaska Bar Association (Bar) to complete at least 12 credit hours of approved CLE, including one credit hour of ethics. Many professions require continuing education to maintain licensure in Alaska. For example, Alaska licensed dentists, doctors, pharmacists, and psychologists are all required to meet minimum continuing education standards. Overall, we believe a mandatory minimum continuing legal education requirement will enhance the membership’s continued professional competence and raise the public’s confidence in attorneys. The Board should encourage the Supreme Court to adopt an Alaska Bar Rule requiring mandatory minimum continuing legal education. Recommendation No. 2. The Board should consider developing a database of disciplined lawyers in the association’s website. While current procedures are adequate, the Board could increase efficient and effective communication of lawyer discipline to the public by publishing their discipline list on their website. The Board should consider developing a database for the Bar’s website of the discipline imposed against lawyers. It will enhance public notification and client protection through increased accessibility of discipline information. Recommendation No. 3. The Board should adopt a due date for the annual report to ensure it is made available to the Supreme Court, the Legislature and the public on a timely basis. The Board’s annual reports for the three years 2002 through 2004 were not prepared timely1. The adoption of a specific due date by the Board in its bylaws or standing policies should ensure the timely preparation of the Board’s annual report. Auditor’s Comment The attorney discipline system of the Bar is a self-regulatory function. Self-regulation has always been viewed skeptically by the citizenry. A majority of the board members is elected by the membership. The following options should be considered in a move away from attorney self-regulation: Disciplinary investigation performed by Alaska Court System employees. Place disciplinary function under the Supreme Court with a Disciplinary Board appointed by the court. Footnotes 1 – We considered completion of the annual report to be untimely if it was not completed within four months after the end of the calendar …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, State Physical Therapy and Occupational Therapy Board, September 17, 2005. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the State Physical Therapy and Occupational Therapy Board (board). As required by state law, the legislative committees of reference are to consider this report when considering whether to extend the termination date for the board. Currently under AS 08.03.010(c)(16), the board will terminate on June 30, 2006. If the legislature does not extend the termination date for the board, it will have one year to conclude its administrative operations. Report Conclusions In our opinion, the State Physical Therapy and Occupational Therapy Board is operating in the public’s best interest and should continue to regulate physical and occupational therapists. The board is safeguarding the public interest by promoting the competence and integrity of those who hold themselves out to the public as qualified and competent physical therapists, occupational therapists, physical therapy assistants, and occupational therapy assistants. The board serves a public purpose and has demonstrated an ability to conduct its business in a satisfactory manner. The board continues to propose changes to regulations to improve its effectiveness and ensure that physical therapists, occupational therapists, physical therapy assistants, and occupational therapy assistants are licensed in the State of Alaska. Alaska Statute 08.03.010(c)(16) requires that the State Physical Therapy and Occupational Therapy Board be terminated on June 30, 2006. Under AS 08.03.020, the board has a one-year period to administratively conclude its affairs. We recommend that the legislature extend the board’s termination date until June 30, 2014. Findings and Recommendations Recommendation No. 1 The Office of the Governor should recruit candidates and make appointments to the board in a timely manner. Board appointments are not filled timely due to a lack of candidates. AS 08.01.020 requires that board appointments be made by the governor. The statute does not specify a time period for filling board vacancies; however, six months is a reasonable time period to appoint a board member following a term expiration date or board vacancy. Since January 2004, three of seven board members have served beyond their appointed terms; another seat has remained vacant for an extended period of time. Currently, one board seat has remained vacant for 17 months. In another instance, a board member has continued to serve 17 months beyond the maximum two successive terms allowed by statute. Additionally, two other board members served 14 months beyond the termination date of their board terms before new appointments were made. Failure to both fill board vacancies and replace outgoing board members hinders a board’s operations, exceeds legal term limits, and creates an imposition on individuals to stay until a successor is appointed. We recommend that the Office of the Governor recruit candidates and make board appointments in a timely …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Chiropractic Examiners, September 26, 2005. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the Board of Chiropractic Examiners (board). As required by state law, the legislative committees of reference are to consider this report when considering whether to extend the termination date for the board. Report Conclusions In our opinion, the Board of Chiropractic Examiners is operating in the public’s best interest and should continue to regulate chiropractors. Except as noted in the paragraph below, the board serves a public purpose and has demonstrated an ability to conduct its business in a satisfactory manner. The board continues to propose changes to regulations to improve its effectiveness and ensure that chiropractors are licensed in the State of Alaska. Outside of the licensing and examination functions, the board has been ineffective in serving the interest of the public. Too much of the board’s time is spent discussing and developing statutory and regulatory changes that will have little to no impact on the public, but instead benefit the profession. Discussion topics include school sports physicals and independent medical examinations. Alaska Statute 08.03.010(c)(5) requires that the Board of Chiropractic Examiners be terminated on June 30, 2006. Under AS 08.03.020, the board has a one-year period to administratively conclude its affairs. We recommend that the legislature extend the board’s termination date until June 30, 2014. Findings and Recommendations Recommendation No. 1 The board should improve the efficiency of its operations by ensuring board meeting discussions are limited to topics within its purview and are of benefit to the public overall. The efficiency of the board is hindered by its misaimed efforts. The board repeatedly discusses topics outside of its purview, which has resulted in wasted time, increased costs, and more meetings than necessary each year. In an effort to improve board efficiency, we recommend the following: Limit agenda discussion items; exclude topics outside of chiropractic examiners’ jurisdiction.In recent years, the board spent an inordinate amount of time discussing topics that would best be left to state or national chiropractic organizations. Agenda items repeatedly discussed included the regulation of independent medical examinations (IME) and the performance of school sports physicals. From August 2000 through January 2005, the board conducted 17 meetings. IMEs were discussed at 14 of the 17 meetings; school sports physicals were discussed at 9 of the meetings. These discussions have continued over time because the board believes regulation of these areas is within its jurisdiction.A 1991 attorney general (AG) opinion explicitly states that chiropractors are not statutorily authorized to perform school sport physicals. An AG’s opinion relating to the chiropractic regulation of IMEs does not exist. On several occasion, however, the board has been informed by Department of Law (DOL) staff that they do not have statutory authority to regulate IMEs. Further, DOL staff have informed the board that legislative changes are necessary before chiropractic examiners can regulate IMEs and before they can perform school sports physicals. Reduce the number of board meetings held each year.As discussed above, the board spends a large amount of time repeatedly discussing items outside of its purview, as authorized in statute, resulting in increased operational costs. Specific increased costs include: contractual costs for DOL expertise; personal services costs for Division of Corporations, Business and Professional Licensing staff services; and board meeting costs. We recommend that the board improve its operational efficiency by ensuring meeting discussions are limited to topics within its purview and are of benefit to the public overall. Additionally, we recommend that the board decrease the number of meetings held each year from three to two, in an effort to reduce operational …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Examiners in Optometry, September 27, 2005. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the Board of Examiners in Optometry (BEO). As required by state law, the legislative committees of reference are to consider this report when considering whether to extend the termination date for BEO. Currently under AS 08.03.010(c)(14), the board will terminate on June 30, 2006. If the legislature does not extend the termination date for the board, BEO will have one year to conclude its administrative operations. Report Conclusions In our opinion, the termination date for BEO should be extended. The board is operating in the public interest by effectively regulating the individuals who hold themselves out to the public as licensed optometrists. The board adopted regulatory changes and supported legislation that improved BEO’s oversight process and have promoted more effective regulation of licensed optometrists. Alaska Statute 08.03.010(c)(14) requires that BEO be terminated on June 30, 2006. Under AS 08.03.020(a), the board has a one-year period to administratively conclude its operations. We recommend the legislature extend the board’s termination date to June 30, 2014. Findings and Recommendations Recommendation No. 1 The Division of Corporations, Professional and Business Licensing (division), in conjunction with the Board of Examiners in Optometry, should decrease licensing fees to eliminate the board’s current and projected operating surplus. Evidence shows the board is accumulating a growing surplus each year. At the end of FY 04 and FY 05, the board had an operating surplus of $13,541 and $56,760, respectively. Alaska Statute 08.01.065(c) requires that fees for an occupation be set to approximate the regulatory costs related to that occupation. Given the growing surplus, it is evident that BEO revenues have exceeded board costs for several years without the division and BEO recommending necessary licensing and other fee adjustments. There has been a steady decrease in board costs since FY 02. Review of board expenditures for the period FY 02 through FY 05 shows travel and contractual costs have decreased each year since FY 02 and personal services costs are down following a spike occurring in FY 03. In general, total expenditures have decreased slightly each year since FY 02, while revenues have steadily increased each renewal year during this time period. Recommendation No. 2 The legislature should consider amending the optometry statutes to ensure they support diagnostic use of pharmaceutical agent endorsements. BEO issues pharmaceutical agent use (only) license endorsements under 12 AAC 48.021, which is not consistent with AS 08.72.175. Regulation 12 AAC 48.025, Pharmaceutical Agent Prescription and Use Endorsement, specifically authorizes the board to issue a TPA, or Therapeutic Pharmaceutical Agent endorsement. This endorsement authorizes a licensee to prescribe and use pharmaceutical agents as specified by AS 08.72.175. Comparatively, regulation 12 AAC 48.021 authorizes the board to issue a license endorsement to use topically applied pharmaceutical agents for diagnostic examination purposes only. The endorsement, commonly referred to as a DPA, or Diagnostic Pharmaceutical Agent endorsement, is not authorized by statute. A 1992 amendment to AS 08.72.175 expanded the license endorsement authority of the board from “use” to “prescribe and use,” thereby causing regulation 12 AAC 48.021, Pharmaceutical Agent Use Endorsement, to become void. A discord between statute and regulation governing optometry endorsements is …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Registration for Architects, Engineers, and Land Surveyors, October 6, 2004. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes, we have reviewed the activities of the Board of Registration for Architects, Engineers, and Land Surveyors (BRAELS). As required by AS 44.66.050(a), the legislative committees of reference are to consider this report during the legislative oversight process involved in determining if the board should be reestablished. Currently, AS 08.03.010(c)(3) states that the board will terminate on June 30, 2005, and will have one year from that date to conclude its affairs. If the legislature does not extend the termination date for the board, BRAELS will have one year to conclude its administrative operations. Report Conclusions In our opinion, the termination date for the Board of Registration for Architects, Engineers, and Land Surveyors should be extended. The board is operating in the public interest by effectively regulating the individuals who hold themselves out to the public as registered architects, engineers, land surveyors, and landscape architects. Alaska Statute 08.03.010(c)(3) requires BRAELS to be terminated on June 30, 2005. If no action is taken by the legislature, under AS 08.03.020, the board will have a one-year period to administratively conclude its affairs. We recommend the legislature extend the board’s termination date to June 30, 2009. Findings and Recommendations Prior Audit Recommendation No. 1 The legislature should consider changes to the statutes mandating that BRAELS require continuing professional education of its licensees. At the time of the prior review, no statutory or regulatory provision existed requiring registered professionals to obtain specified continuing education (CE) as a condition for registration renewal. The purpose of requiring continuing education for licensed professionals is to promote professional practices consistent with current standards and information. The board supported the idea of voluntary continuing education for registrants; however, it did not have a consensus to make such CE mandatory. Legislative Audit’s Current Position The prior finding has been partially resolved. The board received statutory authority to adopt regulations requiring CE for professionals it regulates. The board, however, has yet to adopt any mandatory CE regulations. We continue to recommend the board either develop appropriate mandatory CE requirements for its professional registrants or the legislature considers making such requirements mandatory by statute. Recommendation No. 2 BRAELS should arrange for a comprehensive study regarding the public benefits and related off-setting costs that may be involved with recognizing additional engineering specialties in the State’s licensing structure. Individuals have appeared before BRAELS in recent years asking that the board expand the registrant categories and, accordingly, the number of people who can use the PE designation in commercial practice. Most specifically, individuals who have received accredited academic training in the field of environmental engineering or were recognized as a PE in another jurisdiction after passing only the NCEES environmental engineering examination, have sought BRAELS registration. To date, the board has shown no inclination to seek legislative changes to the current engineering licensure process. We suggest BRAELS consider partnering with State professional organizations and/or the engineering schools affiliated with the University of Alaska to conduct a study. The study could comprehensively address public policy benefits and costs which would provide guidance whether the number of PE specialties should be expanded. Recommendation No. 3 The legislature should consider making the landscape architect representative to BRAELS a full, voting …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Barbers and Hairdressers, October 14, 2004. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes, we have reviewed the activities of the Board of Barbers and Hairdressers (BBH). As required by AS 44.66.050(a), the legislative committees of reference are to consider this report during the legislative oversight process involved in determining if the board should be reestablished. Currently, AS 08.03.010(c)(4) states that the board will terminate on June 30, 2005. If the legislature does not extend the termination date for the board, BBH will have one year to conclude its administrative operations. Report Conclusions In our opinion, the termination date for the Board of Barbers and Hairdressers (BBH) should be extended. BBH is effectively regulating the various professions under its purview – barbers, hairdressers, estheticians, manicurists, body piercers, and tattooists. The board is safeguarding the public interest by ensuring individuals have met the minimum educational and experience requirements before being licensed. BBH serves a public purpose and has demonstrated an ability to conduct its business in a satisfactory manner. The board continues to make changes to regulations to improve the effectiveness of its oversight. Since the last sunset review, BBH has developed a new set of regulations related to tattooists and body piercers. Under Alaska Statute 08.03.010(c)(4), the Board of Barbers and Hairdressers will be terminated on June 30, 2005. If this termination date is not extended, the board has a one-year period to administratively conclude its affairs. We recommend the Legislature extend the board’s termination date to June 30, 2011. Findings and Recommendations The legislature should consider implementing legislation to allow the board to delegate administration of the State’s practical examination to training schools or apprentice supervisors. To be licensed as a barber, hairdresser, esthetician, or an instructor, an individual must successfully complete two types of examinations. The first is a written examination which is objectively scored and covers subject matter that is central to the primary public policy rationale for licensing the professions involved – licensees have access to, and must know how to safely use, the various chemicals involved in hair care and cosmetology treatments. The second examination is a practical examination which requires the applicant to demonstrate they have mastered the various skills related to the license they are seeking. The legislature last extended the termination date of the Board of Barbers and Hairdressers (BBH) in 2001. After its deliberations regarding the extension legislation (SB 53), the Senate Labor and Commerce Committee developed the following statement of intent: The Legislature requests that the Board carefully consider the option of self-testing by the various vocations regulated by the Board and that it consider a pilot program of self-testing. The Legislature specifically requests the Board to research and investigate the results of self-testing in Washington and Oregon. In response to this legislative intent BBH researched the feasibility of, and developed draft regulations to implement, a delegated testing program for the State’s practical examinations for barbers, hairdressers, estheticians, and instructors. BBH did develop draft regulations to implement a delegated, self-testing program for the practical examination covering four of the licenses issued by the board. When BBH forwarded the proposed regulations to the Department of Law for review and approval, the board was advised it did not have the necessary statutory authority to implement such a change. The current board does not support this revision to the examination process. Therefore, we suggest the legislature implement another course of action. The Division of Occupational Licensing should, after consulting with the Department of Law, provide the legislature with suggested statutory language that not only give BBH the authority to delegate the administration of the practical examination, but also mandates the board to take such …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Veterinary Examiners, October 29, 2004. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes, we have reviewed the activities of the Board of Veterinary Examiners (BVE). As required by state law, the legislative committees of reference are to consider this report when considering whether to extend the termination date for BVE. Currently under AS 08.03.010(c)(21), the board will terminate on June 30, 2005. If the legislature does not extend the termination date for the board, BVE will have one year to conclude its administrative operations. Report Conclusions In our opinion, the termination date for the Board of Veterinary Examiners (BVE) should be extended. The board is operating in the public interest by effectively regulating the individuals who hold themselves out to the public as practitioners of veterinary medicine. BVE serves a public purpose and has demonstrated an ability to conduct its business in a satisfactory manner. The board continues to propose changes to regulations improving access to licensure without compromising the competency of practice. Alaska Statute 08.03.010(c)(21) requires the Board of Veterinary Examiners be terminated on June 30, 2005. If not extended, under law the board would have a one-year period to administratively conclude its affairs. We recommend the legislature extend the board’s termination date to June 30, 2009. Findings and Recommendations Recommendation No. 1 BVE should ensure the completeness and timeliness of its required annual reports. Under AS 08.01.070(10), BVE is required to submit “… an annual performance report to the department [Commerce, Community, and Economic Development] stating the board’s accomplishments, activities, and needs.” Annual reports for FY 01, FY 02, and FY 03 were submitted on time to the department. However, pertinent standard information was not included in several of the reports. Noted omissions included budget reports, investigative reports, continuing education enforcement reports, and perhaps most importantly, BVE’s operating goals and objectives for the upcoming year(s). Text stating that these items were to be “added later” was included for the omitted sections, but the reports were never updated. The FY 04 annual report does include all the essential elements. Accordingly, we recommend BVE take steps to ensure that each annual report is complete and timely, in order to meet the intended purpose of both the general licensing reporting statute and the board’s specific reporting statute.   Analysis of Public Need The board has served the public through its examination and licensing of qualified applicants. As recommended in the prior sunset audit report1, the board adopted regulations that clarified what serves as a passing score on the national examination. The change resolved our concerns about the ambiguity in the previous regulatory language. The board also provided for easier access to licensure by examination, expanding the nature and type of transcripts it would accept as part of the license application. In addition, the board is reviewing regulations pertaining to licensing of veterinary technicians that would permit individuals who trained in Canada to be more readily licensed in Alaska. In the previous sunset review we reported BVE’s operations had been impeded by a delay in the distribution of a handbook to veterinarians regarding how to handle various public health threats. The delay was attributable to a policy difference with the Department of Health and Social Services related to the appropriate handling and disposal of rabid animals. The board worked with the Division of Public Health in order to ensure its policy was consistent with guidance issued by the national veterinary organizations. Subsequently, this handbook has been distributed to all interested parties and is available upon request. Footnote: 1 – Division of Legislative Audit’s report Department of Community and Economic Development, Board of Veterinary Examiners Sunset Review, October 20, 2000, Audit Control No. …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Public Accountancy, October 25, 2004. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes, we have reviewed the activities of the Board of Public Accountancy (BOPA). As required by AS 44.66.050(a), the legislative committees of reference are to consider this report during the legislative oversight process involved in determining if the board should be reestablished. Currently, AS 08.03.010(c)(1) states that the board will terminate on June 30, 2005. If the legislature does not extend the termination date for the board, BOPA will have one year to conclude its administrative operations. Report Conclusions In our opinion, the termination date for the Board of Public Accountancy (BOPA) should be extended. The board is serving a public interest by operating in an effective manner in its licensing and regulation of certified public accountants and public accountants. The board is acting in the public interest by promoting the competence and integrity of those who hold themselves out to the public as certified public accountants (CPAs) or public accountants (PAs). The board continues to make regulation changes, improving its effectiveness of monitoring CPAs and PAs licensed in the State of Alaska; making sure they are competent and capable of maintaining the integrity of the profession. The board is proactively attempting to restore testing sites to Juneau and Fairbanks for the Uniform Certified Public Accountant Examination – which have been closed with the implementation of a new testing process by the American Institute of Certified Public Accountants. Alaska Statute 08.03.010(c)(1) requires the Board of Public Accountancy be terminated on June 30, 2005. Under AS 08.03.020, if the termination date is not extended by the legislature, the board will have a one-year period to administratively conclude its affairs. We recommend the legislature extend the board’s termination date to June 30, 2009. Findings and Recommendations BOPA should continue to be proactive in providing better access to its primary licensing examination – the Uniform Certified Public Accountant Examination (CPA Exam). In 2004, the manner in which the CPA Exam is administered in Alaska was changed. Previously, the examination was administered twice a year at a minimum of three testing sites typically located in Anchorage, Fairbanks, and Juneau. The examination spread over two and one-half days; although individuals, who passed previous segments, only had to sit for the parts they had yet to successfully pass. In 2004, in conjunction with changes of format and structure that were made nationally by the American Institute of Certified Public Accounts (AICPA), the examination was changed to an all-computerized format that could be taken in whole or in parts up to three, and eventually four, times a year. By increasing the availability of the examination across the full year, access for applicants was improved. However, as the new testing regimen was implemented in Alaska, this improved access was offset to a large degree by the restriction in the number of available testing sites. Under the new testing regimen, applicants can only take the examination at one test site located in Anchorage. Such circumstances make taking the examination much more expensive for applicants in the Interior and Southeast Alaska. Applicants from these regions must now travel to Anchorage, arrange for transportation and accommodations, in addition of having to pay a higher examination fee. BOPA has adopted a resolution requesting that more testing sites be made available in Alaska for the CPA Exam. BOPA is actively working with NASBA, negotiating on the board’s behalf, to modify the existing contract to provide for more test sites. The board, representatives of the University of Alaska, the state professional society, CPA firms – as well as individual CPAs – recognized the problems involved with having only one test site in Alaska. Individually, and in tandem, some of these groups have been trying to work with NASBA and Prometric to set up an additional testing site. A central tenet of occupational licensing is that regulatory boards for given professions primarily exist to provide public and consumer protection without unduly restricting or limiting entry into the regulated profession. Accordingly, the board must continue to be proactive, and NASBA should be proactive with the AICPA, to be sure the licensing procedures conform with the public policy objectives of occupational regulation and …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Social Work Examiners, October 27, 2004. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes, we have reviewed the activities of the Board of Social Work Examiners (BSWE). As required by state law, the legislative committees of reference are to consider this report when considering whether to extend the termination date for BSWE. Currently under AS 08.31.010(c)(6), the board will terminate on June 30, 2005. If the legislature does not extend the termination date for the board, BSWE will have one year to conclude its administrative operations. Report Conclusions In addition to developing our conclusion regarding extending the termination date for the Board of Social Work Examiners, we also analyzed the operating costs of the board. Such analysis was done to evaluate possible cost savings that might be generated by consolidation of behavioral health boards along the lines suggested in the 2002 letter of intent. Further discussion of our conclusions follows. The termination date of the Board of Social Work Examiners should be extended In our opinion, the termination date for the Board of Social Work Examiners should be extended. The board is operating in an efficient and effective manner and should continue to regulate clinical, master, and baccalaureate social workers. BSWE is serving the public interest by promoting the competence and integrity of those who provide services to the public as licensed social workers. BSWE has demonstrated a capability of conducting its business in a satisfactory manner. The board continues to propose changes to regulations to improve the effectiveness of the board and ensure that social workers are licensed in the State of Alaska. Alaska Statute 08.03.010(c)(6) requires BSWE be terminated on June 30, 2005. If not extended by the legislature, under AS 08.03.020, the board will have a one-year period to administratively conclude its affairs. We recommend the legislature extend the board’s termination date to June 30, 2010. Board consolidation provides minimal savings over current BSWE costs We analyzed various aspects of consolidating all licensing boards related to behavioral health. From the perspective of efficiency and effectiveness, the most tangible benefit of consolidation for BSWE would be a minor cost savings for each licensee. Due to the way costs are accumulated and distributed to various boards, direct costs with the most variability, and thus most likely to be affected by possible consolidation, are those associated with board meetings. Rather than separate boards meeting three to four times a year, consolidation would result in one board, albeit likely a larger one, holding the same number of meetings possibly lasting longer than one day. In recent years, BSWE has spent relatively little on conducting meetings. This likely can be attributed to all of the current, and much of the historical, membership of the board being from the Anchorage bowl. Since most of the meetings have been held in the Anchorage area, travel and per diem costs have been minimal. Of the $47,000 average annual operating costs for BSWE, we estimate less than $3,000 are related to board meeting costs. We project little, if any, administrative savings for licensed social workers if the board was consolidated with other behavioral health boards. Accordingly, we conclude that for Social Work Examiners, board consolidation is unlikely to result in any significant savings that would reduce board operating costs and, by extension, licensing …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Psychologists and Psychological Associate Examiners, October 27, 2004. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes, we have reviewed the activities of the Board of Psychologists and Psychological Associate Examiners (BPPA). As required by state law, the legislative committees of reference are to consider this report when considering whether to extend the termination date for BPPA. Currently under AS 08.31.010(c)(18), the board will terminate on June 30, 2005. If the legislature does not extend the termination date for the board, BPPA will have one year to conclude its administrative operations. Report Conclusions In addition to developing our conclusion regarding extending BPPA’s termination date, we also analyzed the operating costs of the board. Such analysis was done to evaluate possible cost savings that might be generated by consolidation of various behavioral health boards. The Board of Psychologist and Psychological Associate Examiners should be extended In our opinion, BPPA is operating in an efficient and effective manner and should continue to regulate the psychology profession. We believe the board is safeguarding the public interest by ensuring the competence and integrity of those who hold themselves out to the public as psychologists and psychological associates. BPPA serves a public purpose and has demonstrated an ability to conduct its business in a satisfactory manner. Alaska Statute 08.03.010(c)(18) requires the Board of Psychologist and Psychological Associate Examiners be terminated on June 30, 2005. If the legislature takes no action, under AS 08.03.020, BPPA will have a one-year period to administratively conclude its affairs. We recommend the legislature extend the board’s termination date to June 30, 2010. Board consolidation provides minimal savings over current BPPA costs We analyzed various aspects of consolidating all licensing boards related to behavioral health. From the perspective of efficiency and effectiveness, the most tangible benefit of consolidation for BPPA would be a minor cost savings for each licensee. By state law, BPPA is required to hold a minimum of three meetings each year. In recent years the board has spent relatively little on conducting meetings. This likely can be attributed to the fact that the five-person board, effectively, had only three members attending meetings on a regular basis. As a result, travel and per diem costs have been minimal. Out of the $81,000 average annual operating cost, less than 7.5 percent, or an estimated $5,000, is related to board meeting costs. As a result we project little, if any, administrative savings for psychologists and associates in the consolidation of the boards. In a survey of licensees, more than 75 percent who responded said their biggest complaint of the licensing process was their licensing fees were too high. However, when asked if they would favor board consolidation if it resulted in lower fees, roughly the same percentage (72.7 percent) of the 128 respondents stated they would still be opposed to such action. Given the results of the survey, combined with the lack of any significant financial savings in board costs, we conclude that consolidating the Board of Psychologists and Psychological Associates with other behavioral health boards would not increase efficiency or effectiveness in the board’s operation. Findings and Recommendations Recommendation No. 1 The Division of Occupational Licensing, in conjunction with the Board of Psychologist and Psychological Associate Examiners, should increase licensing fees to eliminate the board’s current and projected operating deficits. At the end of FY 04, the board had an operating deficit of almost $75,000. Based on expenditures and revenues to date, we project that it is likely the board will be in a deficit again at the end of FY 05. The major contributing factor to the deficit is that board costs have exceeded license renewal fee revenues, without the board and the Division of Occupational Licensing putting in place the necessary licensing and other fee adjustments. Alaska Statute 08.01.065(c) requires fees be set to approximate the regulatory costs related to that occupation. Recommendation No. 2 The Office of the Governor should take steps to expedite appointments, most importantly the public member seat, to the Board of Psychologists and Psychological …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Marital and Family Therapy, November 1, 2004. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes, we have reviewed the activities of the Board of Marital and Family Therapy (BMFT). As required by state law, the legislative committees of reference are to consider this report when determining whether to extend the termination date for BMFT. Currently under AS 08.03.010(c)(11), the board will terminate on June 30, 2005. If the legislature does not extend the termination date for the board, BMFT will have one year to conclude its administrative operations. Report Conclusions In addition to developing our conclusion regarding extending the termination date for BMFT, we also analyzed the operating costs and other factors related to the operations of the board. Various nonfinancial factors were considered in order to assess the advisability of consolidating BMFT with other behavioral health boards, along the lines suggested in the 2002 letter of intent. Further discussion of our conclusions follows. BMFT should be consolidated with the Board of Professional Counselors In our opinion, BMFT should not be reestablished by the legislature. Rather, we recommend the licensing of qualified professionals be continued through consolidation with the Board of Professional Counselors (BPC). Our recommendation is based upon the following factors: Number of BMFT licensees has significantly declined. Some BMFT licensees hold licenses with other boards. Scope of practice and educational requirements are similar for therapists and counselors. Survey results show mixed reactions to consolidating boards. BMFT is in a chronic-deficit position. Combination of these two professions under a single board is the most common regulatory model. The new consolidated board should be established for four years. In our opinion, the termination date for the consolidated board covering marital and family therapists, along with professional counselors, should be established for June 30, 2009. Both boards have been actively working in the public’s interest by promoting the competence of individuals who hold themselves out to the public as marital and family therapists or professional counselors. BMFT has testified in favor of statutory changes and adopted regulatory changes that made therapists more accountable to their clients and the general public. The board has also substantially curtailed its operating costs, in an attempt to minimize its current negative balance position. Alaska Statute 08.03.010(c)(11) requires BMFT to be terminated on June 30, 2005. If the legislature takes no action, under AS 08.03.020, the board has a one-year period to administratively conclude its affairs. We recommend the legislature combine BMFT with BPC and the consolidated board’s termination date be set at June 30, 2009. If the legislature elects not to consolidate the board, we recommend the Board of Marital and Family Therapy be extended to June 30, 2010. Findings and Recommendations The Board of Marital and Family Therapy and Board of Professional Counselors should be combined into a single oversight and licensing board. The Division of Occupational Licensing (OccLic), in conjunction with the Board of Marital and Family Therapy, should increase licensing fees to eliminate the board’s current and projected operating deficit. At the end of FY 04, BMFT had an operating deficit of more than $75,000. Based on expenditures and revenues to date, we project that it is likely BMFT will, again, be in a deficit at the end of FY 05. BMFT has reduced its direct operating costs to less than $10,000 in FY 04 compared to more than the $20,000 incurred for both FY 03 and FY 02. The Office of the Governor should take steps to make the necessary appointments to keep the Board of Marital and Family Therapy at full …

SUMMARY OF: A Sunset Review of the Department of Health and Social Services Statewide Suicide Prevention Council, November 15, 2004. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the Statewide Suicide Prevention Council (SSPC). The purpose of this audit was to determine if there is a demonstrated public need for the continued existence of the council. Legislative intent requires consideration of this report during the legislative oversight hearings to determine whether the termination date of the Statewide Suicide Prevention Council should be extended. The law currently specifies the council will terminate on June 30, 2005. Report Conclusions Our primary conclusion is the termination date of the council should be extended. We recommend that the legislature extend the termination date for the council to June 30, 2009. We also have concluded that the Department of Health and Social Services (DHSS) hindered the efforts of the council by providing inadequate financial information to the council and by diverting almost 20 percent of the council’s FY 04 funding for non-related expenditures. Findings and Recommendations The Division of Behavioral Health (DBH) Community-based Suicide Prevention Program coordinator should ensure prevention programs conform to the Statewide Suicide Prevention Plan.Now that SSPC has a statewide suicide prevention plan in place, we believe the various community-based suicide prevention plans, at a minimum, should be consistent with the statewide plan. Developing procedures that require grant applicants to certify and explain how their grant activities and community plans are consistent with the state plan will provide more assurance that this particular state funding is being implemented in a manner consistent with the centrally-developed state plan.Accordingly, we recommend DBH modify the grant application process as necessary, requiring communities to read the statewide prevention plan and certify their local plan is consistent with the state plan. Further, we recommend that DBH report to SSPC regarding these grant applications and talk about how the various community-based efforts are consistent with the council’s plan. The Administrative Manager for DHSS Boards and Commissions and staff to the Statewide Suicide Prevention Council should develop a more formalized, informative system of reporting financial information to the council.Eighty percent of the FY 04 operating budget for the council was either lapsed or spent for items that were not directly related to suicide prevention activities. While it is unclear whether DHSS management actively prohibited the council from spending much of their funding, it is clear SSPC did not receive consistent and informative financial reports from the department.Accordingly, we recommend the administrative manager develop a comprehensive, informative format for tracking and reporting expenditure activity for SSPC and develop understandable, reliable reports on a consistent basis to assist the council in the use of its appropriated funding. The council should ensure it provides public notice of all council meetings.Since its inception in 2001, the council did not give adequate public notice of two of its 12 meetings. No public notice was provided on either the State of Alaska’s online public notice system or through publication in widely-circulated state newspapers. Additionally, the agendas for three of the council meetings did not provide periods for public comment.We recommend the council ensure that all meetings are publicly noticed, ensure that the method of notice is consistent and provide opportunity for public comment. We also recommend the council consider posting its meeting schedule on SSPC website. The Office of the Governor should make appointments to the council in a timely manner.SSPC activities were also hampered by delays in appointments made to the council. We recommend the Office of the Governor makes appointments to the council in a timely …

SUMMARY OF: A Sunset Review of the Department of Education and Early Development, Special Education Service Agency, December 18, 2003. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the Department of Education and Early Development, Special Education Service Agency (SESA). The purpose of this audit was to determine if there is a demonstrated public need for the continued existence of this agency. Report Conclusions Alaska Statute 44.66.010(a)(14) requires that the Special Education Service Agency (SESA) be terminated on June 30, 2004 with AS 44.66.010(b) providing for a one-year wrap up period. If no action is taken by the legislature, the agency will be dissolved as of June 30, 2005. We find that SESA has delivered a sufficient quantity and quality of service to justify the agency’s continuation in the public interest. We further support SESA’s continuation in its present form as a nonprofit corporation for the immediate future. However, we also believe that much has changed in SESA’s operating environment since our last review almost a decade ago. This is a turning point for SESA, and some important redirection of its efforts is needed to ensure its sustainability in the years ahead. At this point, SESA’s existing structure appears to be the most capable means for implementing the redirection detailed in our Findings and Recommendations section of the report. We recommend that AS 44.66.010(a)(14) be amended to extend SESA’s termination date to June 30, 2008. Findings and Recommendations In our prior review, we noted the need for the enabling statute to reflect any changes in the funding formula used by the Department of Education and Early Development (DEED). In 1998, SESA’s statutory funding formula was modified as part of legislation that overhauled the state’s support for public schools. SESA should transition to videoconferencing as the norm for delivery of its service. SESA’s management should spearhead a state special education training consortium to formally advance the capabilities of school district personnel. SESA should apply for a federal subsidy of up to 90 percent of its telecommunications expense. SESA’s management should aggressively pursue opportunities for more diversified funding. SESA should continue to enhance the availability of its specialized library to the general public. DEED and the Governor’s Council should appoint representatives who will attend SESA board meetings. As a statutorily-created entity of state government, SESA should investigate the necessity of filing tax returns and paying excise …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Professional Counselors, November 2, 2004. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes, we have reviewed the activities of the Board of Professional Counselors (BPC). As required by state law, the legislative committees of reference are to consider this report when considering whether to extend the termination date for BPC. Currently under AS 08.03.010(c)(17), the board will terminate on June 30, 2005. If the legislature does not extend the termination date for the board, BPC will have one year to conclude its administrative operations. Report Conclusions In addition to developing our conclusion regarding extending the termination date for BPC, we also analyzed the operating costs and other factors related to the operations of the board. Various nonfinancial factors were considered in order to assess the advisability of consolidating BPC with other behavioral health boards. Further discussion of our conclusions follows BPC should be consolidated with the Board of Marital and Family Therapy In our opinion, BPC should not be reestablished by the legislature. Rather, we recommend the licensing of qualified professionals be continued through consolidation with the Board of Marital and Family Therapy (BMFT). We base our recommendation, which in part stems from circumstances involving BMFT, on the following factors: Number of BMFT licensees has significantly declined. Some BPC licensees also hold licenses with BMFT. Scope of practice and educational requirements are similar for therapists and counselors. BMFT is in a chronic-deficit position. Survey results show mixed reactions to consolidating boards. Similar professions on a board enhance public representation. Combination of these two professions under a single board is the most common regulatory model. The new consolidated board should be established for four years. In our opinion, the termination date for the consolidated board covering professional counselors, along with marital and family therapists, should be established for June 30, 2009. Both boards have been actively working in the public’s interest by promoting the competence of individuals who hold themselves out to the public as marital and family therapists or professional counselors. BPC has consistently carried out its responsibilities in the public interest and has demonstrated an ability to conduct its business in a satisfactory manner. The board continues to propose changes to statutes and regulations improving the proficiency of practitioners licensed in Alaska. Alaska Statute 08.03.010(c)(17) requires BPC to be terminated on June 30, 2005. If the legislature takes no action, under AS 08.03.020, the board has a one-year period to administratively conclude its affairs. We recommend the legislature combine BPC with BMFT and establish June 30, 2009 as termination date for the new board. If the legislature elects not to consolidate the board, we recommend the Board of Professional Counselors be extended to June 30, 2010. Findings and Recommendations Recommendation No. 1 The Board of Professional Counselors and Board of Marital and Family Therapy should be combined into a single oversight and licensing board. BPC was created by the 1998 Legislature. At that time there was interest expressed by various legislators of placing professional counselors’ licensing and regulation under the already existing BMFT. After legislative discussions and questioning, it was decided to create a separate Board of Professional Counselors – in part because of concern that one-time “start-up” costs should be borne entirely by counselors rather than made part of the costs paid by marital and family therapists. As part of the sunset review we considered the merits of combining BPC with one or more of the boards involved with behavioral health, such as BMFT, the Board of Psychologist and Psychological Associate Examiners, and the Board of Social Work Examiners Based on our review we recommend that the Board of Professional Counselors and Board of Marital and Family Therapy be consolidated into one board maintaining licensure of each profession separately. However, at some future time because of the similarity of education and practice, a combined board may want to consider a single counseling license with an endorsement to practice a specialty – such as marital and family …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community and Economic Development, Division of Occupational Licensing, Board of Pharmacy, September 3, 2004. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes, we have reviewed the activities of the Board of Pharmacy (BOP). As required by AS 44.66.050(a), the legislative committees of reference are to consider this report during the legislative oversight process involved in determining if the board should be reestablished. Currently, AS 08.03.010(c)(15) states that the board will terminate on June 30, 2005. If the legislature does not extend the termination date for the board, BOP will have one year to conclude its administrative operations. Report Conclusions In our opinion, the termination date for the Board of Pharmacy should be extended. The board is safeguarding the public interest by ensuring the competence of individuals who hold themselves out to the public as pharmacists, pharmacist interns, and pharmacist technicians through reasonable licensing and regulatory requirements. The board also has a role in the regulation of pharmacies, drug rooms1, and wholesale distributors. The board adopted regulatory changes that have improved the board’s oversight process and promoted more effective regulation of licensed pharmacists and pharmacies. Alaska Statute 08.03.010(c)(15) requires the Board of Pharmacy be terminated on June 30, 2005. Under AS 08.03.020, the board has a one-year period to administratively conclude its affairs. We recommend the Legislature extend the board’s termination date to June 30, 2010. Findings and Recommendations Recommendation No. 1 The Division of Occupational Licensing, in conjunction with the Board of Pharmacy, should increase licensing fees to eliminate the board’s current and projected operating deficits. At the end of FY 03, the board had an operating deficit of $65,100. Based on expenditures and revenues to date, we project that it is likely the board will be in a deficit again at the end of FY 04. The major contributing factor to the deficit is that board costs have exceeded license renewal fee revenues without the board and Division of Occupational Licensing (OccLic) putting in place the necessary licensing and other fee adjustments. Alaska Statute 08.01.065(c) requires fees for an occupation be set at a level to approximate the related regulatory costs. Although BOP did increase licensing fees in June 2004, another increase is necessary to eliminate the deficit and to meet annual operating costs of the board. Accordingly, we recommend the department and the board review the regulatory costs and licensing fees to ensure BOP fees are sufficient eliminate the deficit and to meet annual operating costs of the board and regulation of the profession. Recommendation No. 2 The Division of Occupational Licensing should rescind the requirement to provide a photograph with each license application. The Division of Occupational Licensing has eliminated questions on the licensing application requiring personal information. However, a notarized photograph is still required to accompany the licensing application. OccLic has continued with the requirement because of the stipulations made by the National Association of Boards of Pharmacy (NABP). When applying for a license, an individual must also submit a NABP application to BOP. In the past, NABP required OccLic staff to compare the photo on the NABP form to the photograph submitted with the state application. OccLic staff indicates they are not sure this is still a requirement. If the NABP photo comparison requirement is still in place, we recommend OccLic continue to solicit photographs for that purpose. However, the photographs should be kept in a separate file from one reviewed by the board. This separation would eliminate a factor that could have an impact on an individual receiving a license outside of technical qualifications. Taking such action provides greater assurance that the board will consistently be in compliance with equal employment opportunity statutes and regulations. Footnote 1 – The term drug room refers to a situation, which requires licensure from the Board of Pharmacy, where an institutional facility that does not maintain a pharmacy but prepares and administers prescription drugs from bulk supplies for patients receiving treatment within the …

SUMMARY OF: A Sunset Review of the Department of Commerce, Community, and Economic Development, Board of Dental Examiners, August 5, 2004. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes, we have reviewed the activities of the Board of Dental Examiners (BDE). As required by state law, the legislative committees of reference are to consider this report when considering whether to extend the termination date for BDE. Currently under AS 08.03.010(c)(7) the board will terminate on June 30, 2005. If the legislature does not extend the termination date for the board, BDE will have one year to conclude its administrative operations. Report Conclusions In our opinion, the termination date for the Board of Dental Examiners should be extended. The board is operating in the public interest by effectively regulating the individuals who hold themselves out to the public as licensed dentists and dental hygienists. The board has adopted regulatory changes and supported legislation that improved the board’s oversight process and has promoted more effective regulation of licensed dentists and dental hygienists. Alaska Statute 08.03.010(c)(7) requires the Board of Dental Examiners be terminated on June 30, 2005. If the legislature does not extend the termination date, the board will have a one-year “wrap-up” period to administratively conclude its operations. We recommend the legislature extend the termination date of the board until June 30, 2011. Implementation of our recommendation would require the legislature to exercise some discretion permitted by state law. Alaska Statute 08.03.020(c) provides for the following: A board scheduled for termination … may be continued or reestablished by the legislature for a period not to exceed four years unless the board is continued or reestablished for a longer period… [emphasis added] Two factors influence our recommendation that the legislature extend the board to June 30, 2011. First, the board has operated effectively and in the public’s interest over the past four years. Secondly, this extension would work towards smoothing out the number of boards and commissions that come under sunset in a particular year. Typically, there are four to six boards and/or commissions scheduled for a legislative sunset review; however, in 2005 there are 12 boards scheduled for sunset. Nonstandard extension dates will allow for a more even distribution of organizations going through the sunset process in any given year. Analysis of Public Need The board licenses applicants in two ways, by examination and by credentials. Licensure by credentials requires that the applicant document their previous work history as a dentist or dental hygienist as basis for receiving a state license to practice. In prior reports we have expressed concerns that licensure by credential has been unnecessarily cumbersome and difficult. The board adopted new and revised old regulations related to licensure by credentials that have made this process less restrictive. Further, the board adopted new regulations that expanded continuing education requirements and provided for the issuance of licenses in a more uniform and consistent manner. The Board of Dental Examiners supported passage of HB 81 by the 22nd Legislature (Chapter 24 SLA 01) which accomplished changes to several statutes related to dentistry. Two significant changes of particular benefit to the public included: the acceptance of passing scores of an exam administered by the Central Regional Dental Testing Service an increase in the civil fine penalty from $5,000 to $25,000 per violation Previously, candidates could only qualify for licensure by an exam that was administered by the Western Regional Examining Board. The Central and Western regions agree the exams are comparable, and per legislative testimony there is statistical evidence to support the claim. Additionally, acceptance of another exam benefits the State by reducing barriers to entry for dentists from other states wishing to relocate here. The increase in the civil fine penalty parallels an increase that was also adopted for the Medical Board (included in separate …

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SUMMARY OF: A Sunset Review of the Department of Community and Economic Development,Board of Dispensing Opticians, September 12, 2003. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the Board of Dispensing Opticians. The purpose of this audit was to determine if there is a demonstrated public need for the continued existence of the Board of Dispensing Opticians. Report Conclusions Under AS 44.66.050(d)(4), part of a sunset review is to provide “an assessment of alternative methods of achieving the purposes of the program.” In the prior audit we considered the merits of regulating opticians through a registration process and placing primary reliance on the successful completion of nationally recognized examinations to ensure competency. Most states do not “regulate” or license opticians at all. According to the Opticians Association of America, only 22 states license dispensing opticians. Texas has a voluntary registration program – which allows the individual to advertise as a “registered optician” if they have met certain established criteria related to competency. Such an approach may be a viable alternative for Alaska. Under this approach, an individual could advertise as being a registered optician once they provided proof to the Division of Occupational Licensing (OccLic) that they had met the necessary testing and continuing education requirements. Presumably, such designation would have some commercial advantages, assuring consumers the practitioner had met an established standard of competency. The future operational viability of the board is questionable. In the long term, the number of new applicants seeking licensure as opticians may be reduced significantly due to creation of the optician assistant designation. Combined with fiscal instability brought on by licensing fee revenues insufficient to cover the operating costs of the board, the long-term viability of the Board of Dispensing Opticians(BDO) is problematic. Given these concerns, we recommend the legislature not extend the termination date for the board. Accordingly, the board will terminate operations at June 30, 2005.In our view, the public can be adequately protected by competition in the marketplace, ongoing supervision of assistants, or professional standards already established for practicing opticians and ophthalmologists. Findings and Recommendations If the legislature decides to extend the termination date for the Board of Dispensing Opticians (BDO), we believe it is important for the board to take the following two actions. Recommendation No. 1 The board should develop and propose legislation to clarify statutes related to the various aspects of dispensing optician licensing. Opticianry statutes should be amended to address the following concerns: The amount of apprentice training hours necessary for licensure should be clarified. Currently, AS 08.71.110(a)(2)(A) states an individual must complete “at least 1,800 hours of training as an apprentice…”. In regulation, BDO specifies the individual complete a board-approved course, accumulate 1,800 hours of training, and pass the necessary examinations to be licensed in dispensing spectacles. The regulations also state that in order for an individual to be licensed to dispense contact lenses they must complete an additional 1,800 hours and pass the relevant national examination. State law makes no distinction related to these endorsements. Modification of apprentice registration requirements at AS 08.71.160. Recognition, in statute, of a process to license individuals from other jurisdictions. Recommendation No. 2 The Division of Occupational Licensing in conjunction with the board should increase optician’s licensing fees to eliminate the cumulative deficit. Another increase in optician’s licensing fees is necessary to eliminate the cumulative deficit. Licenses are renewed every two years; therefore, the revenue generated in the renewal year must be sufficient to fund most of the board’s costs of the nonrenewal or subsequent year. The recent increase in licensing renewal fees for dispensing opticians and optician’s apprentices appears to be sufficient to cover the board’s costs for the two-year period. Depending on the amount of revenue collected in the nonrenewal year, the increased licensing fee may also reduce a small portion of the board’s continuing deficit. Alaska Statute 08.01.065(c) requires fees for an occupation to be set to approximate the regulatory costs for the occupation. We recommend the board and OccLic review the regulatory costs and licensing fees to ensure that BDO sufficiently eliminates the cumulative deficit and meets annual operating …

SUMMARY OF: A Sunset Report on the Department of Community and Economic Development, Board of Certified Real Estate Appraisers, July 17, 2003. Purpose of the Report In accordance with the intent of Titles 24 and 44 of the Alaska Statutes, we have reviewed the activities of the Board of Certified Real Estate Appraisers (BCREA) to determine if the termination date for the board should be extended. As required by AS 44.66.050(a), the legislative committee of reference shall consider this report as part of the oversight process in determining if BCREA should be reestablished. Currently, AS 08.03.010(c)(20) specifies that BCREA will terminate on June 30, 2004 and will have one year from that date to conclude its administrative operations. Report Conclusions In our opinion, the termination date of BCREA should be extended. The use of state certified real estate appraisers will be a continuing requirement for Alaska’s financial institutions to qualify for federal deposit insurance and to participate in selling mortgage loans to federal government-sponsored enterprises(1). Failure to maintain a real estate appraiser certification program that meets federal requirements could cause the financial institutions – and by extension, the citizens – of the State to not only lose the opportunity to participate in a number of federally-sponsored real estate loan programs, but also the ability to obtain federal deposit insurance. In this context, we recommend that the legislature extend BCREA’s termination date to June 30, 2008.   1 – Government-sponsored enterprises include such entities as the Federal Home Loan Mortgage Corporation (generally referred to as “Freddie Mac”) and the Federal National Mortgage Association (generally referred to as “Fannie …

SUMMARY OF: : A Sunset Review of the Department of Community and Economic Development, Division of Occupational Licensing, Real Estate Commission Purpose of the Report In accordance with the intent of Titles 24 and 44 of the Alaska Statutes, we have reviewed the activities of the Real Estate Commission (REC) to determine if the termination date for the commission should be extended. As required by AS 44.66.050(a), the legislative committee of reference shall consider this report as part of the oversight process in determining if REC should be reestablished. Currently, AS 08.03.010(c)(19) specifies that REC will terminate on June 30, 2004, and will have one year from that date to conclude its administrative operations. Report Conclusions In our opinion, the termination date for REC should be extended. The commission serves a public purpose and has demonstrated an ability to operate in a satisfactory manner. The regulation and licensing of real estate professionals provides necessary public protection in the buying and selling of residential and commercial properties. The commission carries out its responsibilities to educate both the public and REC licensees in a professional, competent, and efficient manner. Additionally, active investigation of complaints and licensure actions, when appropriate, provides assurance that licensed professionals are competent and ethical. We recommend that legislation be enacted to extend the commission’s termination date to June 30, 2008. Findings and Recommendations 1. The legislature should amend the statutes related to the Real Estate Surety Fund (RESF) to provide more complete, effective, and efficient consumer protection to claimants. RESF provides consumers reimbursement for financial losses they may have suffered from a real estate transaction attributable to “fraud, misrepresentation, deceit, or the conversion of trust funds…” on the part of an REC licensee. Claims for reimbursement are subject to a hearing process administered in accordance with the state’s administrative procedures act. In order to make the RESF operate in a manner consistent with the fund’s evident purpose, we recommend the legislature amend state laws related to the fund in order to: Increase the limits on reimbursement of claims to $20,000 per transaction and the associated maximum payment per licensee to $100,000. Only require the Division of Occupational Licensing (OccLic) to make reasonable efforts to provide right-of-appeal notification. Specify that mobile home transactions are subject to RESF …

SUMMARY OF: A Sunset Review of the Department of Community and Economic Development, Regulatory Commission of Alaska, November 26, 2002. Purpose of the Report In accordance with Title 24 and Title 44 of the Alaska Statutes (sunset legislation), we have reviewed the activities of the Regulatory Commission of Alaska (RCA). The purpose of this audit was to determine if there is a demonstrated public need for the continued existence of this Commission. In a special session in June 2002, legislative committees conducted extensive oversight hearings that focused on RCA’s workload and the utilities’ complaints of slow processing of their requests. The legislature responded to these complaints by enacting statutory deadlines for RCA decisions in several categories of cases. The governor signed that legislation in August. As the new timelines are just now beginning to take effect, it is premature to conduct a workload study of RCA processes or survey utility companies on whether they believe RCA has improved. These issues will be included in the next sunset audit of RCA. Legislative intent requires consideration of this report during the legislative oversight hearings to determine whether the termination date of the Regulatory Commission of Alaska should be extended. The law currently specifies that the Commission will terminate on June 30, 2003. Report Conclusions Except for the limitation discussed above, we conclude that RCA is operating in an efficient and effective manner and the public interest is being served by requiring public utilities and pipelines to be certificated and economically regulated by RCA. The regulatory process stabilizes the availability of utility services. Economic regulation by the Commission ensures that, despite the absence of competition, utilities provide service at reasonable rates. In two years, the impact of the new statutes on both the utilities and the public can be meaningfully evaluated. We thus recommend that Alaska Statute 44.66.010(a)(4) be amended to extend the termination date of the Regulatory Commission of Alaska to June 30, 2005. Findings and Recommendations In our previous sunset audit, we made three recommendations. We noted RCA’s lack of published procedures and criteria as to when its public advocacy section would be assigned to a case and how its intervention would be accomplished. RCA has now considered public comments and drafted proposed regulations that adequately address our concerns. We recommend that RCA diligently pursue its current plan to forward the proposed regulations to the Department of Law regulations attorney by December 2002. We also reported last year that 65 piped water systems and 65 piped sewer systems did not have the required certificate to operate a utility. RCA indicates its intention to ultimately address this matter through regulations that distinguish among the requirements imposed upon water-related utilities of various sizes and settings. We further recommended that RCA improve its procedures for assuring that the newspaper notices of its formal proceedings are printed in an accurate and timely manner. Our fieldwork shows that this problem remains uncorrected. Finally, an outstanding recommendation from our 1998 sunset review concerned the implementation of a management information system with a number of components. This recommendation was subsequently incorporated as a requirement within RCA’s enabling legislation. The management information system has now been substantially implemented, though on a piecemeal basis spread among a variety of systems rather than on a single, fully-integrated mainframe. This overall system also included an employee time tracking component mandated by statute. RCA should propose legislation to clarify statutes enacted last session. RCA’s chair should ensure that the publication of notices of formal proceedings is monitored. RCA should either require smaller water and sewer utilities to be certificated or establish a meaningful exemption system by …

SUMMARY OF: A Special Report on the Department of Revenue, Alcoholic Beverage Control Board, Sunset Review, November 29, 2002. Purpose of the Report In accordance with Titles 24 and 44 of the Alaska Statutes, we have reviewed the activities of the Alcoholic Beverage Control Board (ABC Board or the board). As required by AS 44.33.050(a), the committee of reference is to consider this report during the legislative oversight process to determine whether the board should be reestablished. Currently, under AS 44.66.010(a)(1), the board will terminate on June 30, 2003 and will have one year from that date to conclude its administrative operations. To determine if the termination date of the board should be extended. To determine if the board is operating in the public interest. The assessment of the operations and performance of the board was based on AS 44.66.050(c). This statute sets out criteria that are to be used in determining a demonstrated public need for the board. Report Conclusions In our opinion, the Alcoholic Beverage Control Board should continue to regulate the manufacture, sale, barter, and possession of alcoholic beverages in Alaska in order to protect the public’s health, safety, and welfare. The board has provided protection to the general public through the issuance, renewal, and temporary suspension of liquor licenses. Protection has also been provided through investigations of suspected licensing violations and enforcement of the state’s alcoholic beverage control laws and regulations. As indicated in the Analysis of Public Need section of the report, the ABC Board has met the various statutory criteria. With the exceptions noted in the Findings and Recommendations section, the board is effectively and efficiently meeting its statutory responsibilities and is operating in the public interest. The ABC Board is organized under statute as a regulatory and quasi-judicial agency; however, it appears to be spending a disproportionate amount of time and resources on police efforts rather than on the regulatory function. We recommend that Alaska Statute 44.66.010(a)(1) be amended to extend the life of the Alcoholic Beverage Control Board to June 30, 2006. This three-year extension will give the board ample time to correct the deficiencies noted in this report and it will trigger a timely follow-up audit to determine if these deficiencies have been fully addressed. Findings and Recommendations The legislature should consider having the Department of Public Safety conduct criminal investigations, rather than the ABC Board.Title IV was revised in 1999 to have ABC Board staff investigate violations of gambling and prostitution on licensed premises. The Department of Public Safety is better equipped to handle these types of investigations. There would be significant inefficiencies in attempting to turn ABC into a four-officer, statewide police force. The ABC Board should seek an amendment to Title IV to allow the board to summarily suspend liquor licenses..Currently the ABC Board does not have the power to summarily suspend a liquor license prior to revocation. Since revocation does not take effect until all due process rights have been exhausted, licensees whose liquor licenses have been revoked may be able to operate for two or more years after the revocation was imposed. Summarily suspending a license involves the immediate cessation of alcohol sales by a licensee while the board pursues revocation of the license. This process provides greater protection to the public while still providing due process rights to the licensee. This power would be similar to that held by other occupational licensing boards and would be used when continued operation by a licensee would pose a clear and immediate danger to the public. The ABC Board should conduct routine background checks on all licensees as they renew their licenses or should track licensees through the public safety information system. The director should ensure that all fines are collected and deposited into the General Fund. The ABC Board and its director should provide goals for the enforcement staff. The director should upgrade the ABC Board licensing database. The director should require staff to prepare and maintain procedural manuals. The ABC Board members should urge the governor’s office to fill board vacancies within the 30-day timeline required by …