SB0074B -1- CSSB 74(FIN) New Text Underlined [DELETED TEXT BRACKETED] 33-LS0138\U CS FOR SENATE BILL NO. 74(FIN) IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-THIRD LEGISLATURE - FIRST SESSION BY THE SENATE FINANCE COMMITTEE Offered: 4/19/23 Referred: Rules Sponsor(s): SENATOR WILSON A BILL FOR AN ACT ENTITLED "An Act relating to an interstate physical therapy licensure compact; relating to the 1 licensure of physical therapists, physical therapist assistants, occupational therapists, 2 and occupational therapy assistants; and providing for an effective date." 3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4 * Section 1. AS 08.84.010(b) is amended to read: 5 (b) The board shall control all matters pertaining to the licensing of physical 6 therapists, physical therapist assistants, occupational therapists, and occupational 7 therapy assistants and the practice of physical therapy and the practice of occupational 8 therapy. The board shall 9 (1) pass upon the qualifications of applicants; 10 (2) provide for the examination of applicants; 11 (3) issue temporary permits and licenses to persons qualified under this 12 chapter; 13 (4) suspend, revoke, or refuse to issue or renew a license under 14 33-LS0138\U CSSB 74(FIN) -2- SB0074B New Text Underlined [DELETED TEXT BRACKETED] AS 08.84.120; 1 (5) keep a current register listing the name, business address, date, and 2 number of the license of each person who is licensed to practice under this chapter; 3 (6) adopt regulations under AS 44.62 (Administrative Procedure Act) 4 necessary to carry out the purposes of this chapter, including regulations establishing 5 qualifications for licensure and renewal of licensure under this chapter; 6 (7) implement the Interstate Physical Therapy Licensure Compact 7 under AS 08.84.188. 8 * Sec. 2. AS 08.84.030 is amended to read: 9 Sec. 08.84.030. Qualifications for licensing. (a) To be eligible for licensure 10 by the board as a physical therapist or physical therapist assistant, an applicant, unless 11 a graduate of a foreign school of physical therapy located outside the United States, 12 shall 13 (1) have graduated from a professional physical therapy education 14 program that includes supervised field work and is accredited by a national 15 accreditation agency approved by the board; 16 (2) pass, to the satisfaction of the board, an examination prepared by a 17 national testing service approved by the board to determine the applicant's fitness for 18 practice as a physical therapist or physical therapist assistant, or be entitled to 19 licensure without examination as provided in AS 08.84.060; [AND] 20 (3) meet qualifications for licensure established in regulations adopted 21 by the board under AS 08.84.010(b); and 22 (4) have been fingerprinted and have provided the fees required 23 by the Department of Public Safety under AS 12.62.160 for criminal justice 24 information and a national criminal history record check; the fingerprints and 25 fees shall be forwarded to the Department of Public Safety to obtain a report of 26 criminal justice information under AS 12.62 and a national criminal history 27 record check under AS 12.62.400. 28 (b) To be eligible for licensure by the board as an occupational therapist or 29 occupational therapy assistant, an applicant, unless a graduate of a foreign school of 30 occupational therapy located outside the United States, shall 31 33-LS0138\U SB0074B -3- CSSB 74(FIN) New Text Underlined [DELETED TEXT BRACKETED] (1) have graduated from a professional occupational therapy education 1 program that includes supervised field work and is accredited by a national 2 accreditation agency approved by the board; 3 (2) pass, to the satisfaction of the board, an examination prepared by a 4 national testing service approved by the board or an examination recognized by a 5 national accreditation agency approved by the board to determine the applicant's 6 fitness for practice as an occupational therapist or occupational therapy assistant, or be 7 entitled to licensure without examination under AS 08.84.060; [AND] 8 (3) meet qualifications for licensure established in regulations adopted 9 by the board under AS 08.84.010(b); and 10 (4) have been fingerprinted and have provided the fees required 11 by the Department of Public Safety under AS 12.62.160 for criminal justice 12 information and a national criminal history record check; the fingerprints and 13 fees shall be forwarded to the Department of Public Safety to obtain a report of 14 criminal justice information under AS 12.62 and a national criminal history 15 record check under AS 12.62.400. 16 * Sec. 3. AS 08.84.032 is amended to read: 17 Sec. 08.84.032. Foreign-educated applicants. (a) To be eligible for licensure 18 by the board as a physical therapist or physical therapist assistant, an applicant who is 19 a graduate of a school of physical therapy that is located outside the United States 20 shall 21 (1) have completed, to the satisfaction of the board, a resident course 22 of study and professional instruction substantially equivalent to a professional physical 23 therapy education program that is accredited by a board-approved national 24 accreditation agency in the United States; 25 (2) have completed, to the satisfaction of the board, an internship 26 under the continuous direction and immediate supervision of a physical therapist in an 27 institution that ordinarily provides physical therapy and is approved by the board, for 28 that period of time specified by the board, and furnish documentary evidence of 29 compliance with this paragraph; 30 (3) pass an examination recognized by the board that measures the 31 33-LS0138\U CSSB 74(FIN) -4- SB0074B New Text Underlined [DELETED TEXT BRACKETED] competence of the applicant in the English language if the applicant's physical 1 therapist or physical therapist assistant education program was not taught in English; 2 (4) have met applicable requirements under 8 U.S.C. 1101 - 1503 3 (Immigration and Nationality Act), unless a United States citizen; 4 (5) pass the examination approved by the board under 5 AS 08.84.030(a)(2); 6 (6) pay the fee required under AS 08.84.050; [AND] 7 (7) meet additional qualifications for licensure established in 8 regulations adopted by the board under AS 08.84.010(b); and 9 (8) have been fingerprinted and have provided the fees required 10 by the Department of Public Safety under AS 12.62.160 for criminal justice 11 information and a national criminal history record check; the fingerprints and 12 fees shall be forwarded to the Department of Public Safety to obtain a report of 13 criminal justice information under AS 12.62 and a national criminal history 14 record check under AS 12.62.400. 15 (b) To be eligible for licensure by the board as an occupational therapist or 16 occupational therapy assistant, an applicant who is a graduate of a school of 17 occupational therapy that is located outside the United States shall 18 (1) have completed, to the satisfaction of the board, a resident course 19 of study and professional instruction substantially equivalent to a professional 20 occupational therapy education program that is accredited by a board-approved 21 national accreditation agency in the United States; 22 (2) have completed, to the satisfaction of the board, supervised field 23 work equivalent to that required under AS 08.84.030(b); 24 (3) pass an examination recognized by the board that measures the 25 competence of the applicant in the English language if the applicant's occupational 26 therapist or occupational therapy assistant education program was not taught in 27 English; 28 (4) have met applicable requirements under 8 U.S.C. 1101 - 1503 29 (Immigration and Nationality Act), unless a United States citizen; 30 (5) pass an examination approved by the board under AS 08.84.030(b); 31 33-LS0138\U SB0074B -5- CSSB 74(FIN) New Text Underlined [DELETED TEXT BRACKETED] (6) pay the fee required under AS 08.84.050; [AND] 1 (7) meet additional qualifications for licensure established in 2 regulations adopted by the board under AS 08.84.010(b); and 3 (8) have been fingerprinted and have provided the fees required 4 by the Department of Public Safety under AS 12.62.160 for criminal justice 5 information and a national criminal history record check; the fingerprints and 6 fees shall be forwarded to the Department of Public Safety to obtain a report of 7 criminal justice information under AS 12.62 and a national criminal history 8 record check under AS 12.62.400. 9 * Sec. 4. AS 08.84 is amended by adding a new section to read: 10 Sec. 08.84.034. Exemption from criminal justice information and criminal 11 history record check. A physical therapist, physical therapist assistant, occupational 12 therapist, or occupational therapy assistant holding a valid license under this chapter 13 on July 1, 2024, is exempt from the requirements of AS 08.84.030(a)(4) and (b)(4) and 14 08.84.032(a)(8) and (b)(8), but is otherwise subject to this chapter. 15 * Sec. 5. AS 08.84.050 is amended to read: 16 Sec. 08.84.050. Fees. The Department of Commerce, Community, and 17 Economic Development shall set fees under AS 08.01.065 for the following: 18 (1) application; 19 (2) license by examination; 20 (3) license by acceptance of credentials; 21 (4) renewal; 22 (5) temporary permit; 23 (6) limited permit; 24 (7) compact privilege. 25 * Sec. 6. AS 08.84.150(a) is amended to read: 26 (a) It is unlawful for a person to practice physical therapy without being 27 licensed under this chapter unless the person is 28 (1) a student in an accredited physical therapy program; 29 (2) a graduate of a foreign school of physical therapy fulfilling the 30 internship requirement of AS 08.84.032, and then only unless under the continuous 31 33-LS0138\U CSSB 74(FIN) -6- SB0074B New Text Underlined [DELETED TEXT BRACKETED] direction and immediate supervision of a physical therapist; [OR] 1 (3) issued a limited permit under AS 08.84.075; or 2 (4) granted a compact privilege under AS 08.84.188. 3 * Sec. 7. AS 08.84 is amended by adding a new section to read: 4 Article 3A. Interstate Physical Therapy Licensure Compact. 5 Sec. 08.84.188. Compact enacted. The Interstate Physical Therapy Licensure 6 Compact as contained in this section is enacted into law and entered into on behalf of 7 the state with all other states and jurisdictions legally joining it in a form substantially 8 as follows: 9 SECTION 1. PURPOSE 10 The purpose of this Compact is to facilitate interstate practice of physical therapy with 11 the goal of improving public access to physical therapy services. The practice of physical 12 therapy occurs in the state where the patient or client is located at the time of the patient/client 13 encounter. The Compact preserves the regulatory authority of states to protect public health 14 and safety through the current system of state licensure. This Compact is designed to achieve 15 the following objectives: 16 (1) Increase public access to physical therapy services by providing for 17 the mutual recognition of other member state licenses; 18 (2) Enhance the states' ability to protect the public's health and safety; 19 (3) Encourage the cooperation of member states in regulating multi-20 state physical therapy practice; 21 (4) Support spouses of relocating military members; 22 (5) Enhance the exchange of licensure, investigative, and disciplinary 23 information between member states; and 24 (6) Allow a remote state to hold a provider of services with a compact 25 privilege in that state accountable to that state's practice standards. 26 SECTION 2. DEFINITIONS 27 As used in this Compact, and except as otherwise provided, the following definitions 28 shall apply: 29 (1) "Active duty military" means full-time duty status in the active 30 uniformed service of the United States, including members of the National Guard and 31 33-LS0138\U SB0074B -7- CSSB 74(FIN) New Text Underlined [DELETED TEXT BRACKETED] Reserve on active duty orders pursuant to 10 U.S.C. Chapter 1209 and 1211. 1 (2) "Adverse action" means disciplinary action taken by a physical 2 therapy licensing board based upon misconduct, unacceptable performance, or a 3 combination of both. 4 (3) "Alternative program" means a non-disciplinary monitoring or 5 practice remediation process approved by a physical therapy licensing board. This 6 includes substance abuse issues. 7 (4) "Compact privilege" means the authorization granted by a remote 8 state to allow a licensee from another member state to practice as a physical therapist 9 or work as a physical therapist assistant in the remote state under its laws and rules. 10 The practice of physical therapy occurs in the member state where the patient or client 11 is located at the time of the patient/client encounter. 12 (5) "Continuing competence" means a requirement, as a condition of 13 license renewal, to provide evidence of participation in, and/or completion of, 14 educational and professional activities relevant to practice or area of work. 15 (6) "Data system" means a repository of information about licensees, 16 including examination, licensure, investigative, compact privilege, and adverse action. 17 (7) "Encumbered license" means a license that a physical therapy 18 licensing board has limited in any way. 19 (8) "Executive Board" means a group of directors elected or appointed 20 to act on behalf of, and within the powers granted to them by, the Commission. 21 (9) "Home state" means the member state that is the licensee's primary 22 state of residence. 23 (10) "Investigative information" means information, records, and 24 documents received or generated by a physical therapy licensing board pursuant to an 25 investigation. 26 (11) "Jurisprudence requirement" means the assessment of an 27 individual's knowledge of the laws and rules governing the practice of physical 28 therapy in a state. 29 (12) "Licensee" means an individual who currently holds an 30 authorization from the state to practice as a physical therapist or to work as a physical 31 33-LS0138\U CSSB 74(FIN) -8- SB0074B New Text Underlined [DELETED TEXT BRACKETED] therapist assistant. 1 (13) "Member state" means a state that has enacted the Compact. 2 (14) "Party state" means any member state in which a licensee holds a 3 current license or compact privilege or is applying for a license or compact privilege. 4 (15) "Physical therapist" means an individual who is licensed by a 5 state to practice physical therapy. 6 (16) "Physical therapist assistant" means an individual who is licensed 7 or certified by a state and who assists the physical therapist in selected components of 8 physical therapy. 9 (17) "Physical therapy," "physical therapy practice," and "the practice 10 of physical therapy" mean the care and services provided by or under the direction and 11 supervision of a licensed physical therapist. 12 (18) "Physical Therapy Compact Commission" or "Commission" 13 means the national administrative body whose membership consists of all states that 14 have enacted the Compact. 15 (19) "Physical therapy licensing board" or "licensing board" means the 16 agency of a state that is responsible for the licensing and regulation of physical 17 therapists and physical therapist assistants. 18 (20) "Remote state" means a member state other than the home state, 19 where a licensee is exercising or seeking to exercise the compact privilege. 20 (21) "Rule" means a regulation, principle, or directive promulgated by 21 the Commission that has the force of law. 22 (22) "State" means any state, commonwealth, district, or territory of 23 the United States of America that regulates the practice of physical therapy. 24 SECTION 3. STATE PARTICIPATION IN THE COMPACT 25 (a) To participate in the Compact, a state must: 26 (1) Participate fully in the Commission's data system, including using 27 the Commission's unique identifier as defined in rules; 28 (2) Have a mechanism in place for receiving and investigating 29 complaints about licensees; 30 (3) Notify the Commission, in compliance with the terms of the 31 33-LS0138\U SB0074B -9- CSSB 74(FIN) New Text Underlined [DELETED TEXT BRACKETED] Compact and rules, of any adverse action or the availability of investigative 1 information regarding a licensee; 2 (4) Fully implement a criminal background check requirement, within 3 a time frame established by rule, by receiving the results of the Federal Bureau of 4 Investigation record search on criminal background checks and use the results in 5 making licensure decisions in accordance with Section 3(b); 6 (5) Comply with the rules of the Commission; 7 (6) Utilize a recognized national examination as a requirement for 8 licensure pursuant to the rules of the Commission; and 9 (7) Have continuing competence requirements as a condition for 10 license renewal. 11 (b) Upon adoption of this statute, the member state shall have the authority to 12 obtain biometric-based information from each physical therapy licensure applicant and 13 submit this information to the Federal Bureau of Investigation for a criminal 14 background check in accordance with 28 U.S.C. §534 and 34 U.S.C. §40316. 15 (c) A member state shall grant the compact privilege to a licensee holding a 16 valid unencumbered license in another member state in accordance with the terms of 17 the Compact and rules. 18 (d) Member states may charge a fee for granting a compact privilege. 19 SECTION 4. COMPACT PRIVILEGE 20 (a) To exercise the compact privilege under the terms and provisions of the 21 Compact, the licensee shall 22 (1) Hold a license in the home state; 23 (2) Have no encumbrance on any state license; 24 (3) Be eligible for a compact privilege in any member state in 25 accordance with Section 4(d), (g) and (h); 26 (4) Have not had any adverse action against any license or compact 27 privilege within the previous 2 years; 28 (5) Notify the Commission that the licensee is seeking the compact 29 privilege within a remote state; 30 (6) Pay any applicable fees, including any state fee, for the compact 31 33-LS0138\U CSSB 74(FIN) -10- SB0074B New Text Underlined [DELETED TEXT BRACKETED] privilege; 1 (7) Meet any jurisprudence requirements established by the remote 2 state in which the licensee is seeking a compact privilege; and 3 (8) Report to the Commission adverse action taken by any non-4 member state within 30 days from the date the adverse action is taken. 5 (b) The compact privilege is valid until the expiration date of the home 6 license. The licensee must comply with the requirements of Section 4(a) to maintain 7 the compact privilege in the remote state. 8 (c) A licensee providing physical therapy in a remote state under the compact 9 privilege shall function within the laws and regulations of the remote state. 10 (d) A licensee providing physical therapy in a remote state is subject to that 11 state's regulatory authority. A remote state may, in accordance with due process and 12 that state's laws, remove a licensee's compact privilege in the remote state for a 13 specific period of time, impose fines, and/or take any other necessary actions to 14 protect the health and safety of its citizens. The licensee is not eligible for a compact 15 privilege in any state until the specific time for removal has passed and all fines are 16 paid. 17 (e) If a home state license is encumbered, the licensee shall lose the compact 18 privilege in any remote state until the following occur: 19 (1) The home state license is no longer encumbered; and 20 (2) Two years have elapsed from the date of the adverse action. 21 (f) Once an encumbered license in the home state is restored to good standing, 22 the licensee must meet the requirements of Section 4(a) to obtain a compact privilege 23 in any remote state. 24 (g) If a licensee's compact privilege in any remote state is removed, the 25 individual shall lose the compact privilege in any remote state until the following 26 occur: 27 (1) The specific period of time for which the compact privilege was 28 removed has ended; 29 (2) All fines have been paid; and 30 (3) Two years have elapsed from the date of the adverse action. 31 33-LS0138\U SB0074B -11- CSSB 74(FIN) New Text Underlined [DELETED TEXT BRACKETED] (h) Once the requirements of Section 4(g) have been met, the licensee must 1 meet the requirements in Section 4(a) to obtain a compact privilege in a remote state. 2 SECTION 5. ACTIVE DUTY MILITARY PERSONNEL OR THEIR SPOUSES 3 A licensee who is active duty military or is the spouse of an individual who is active 4 duty military may designate one of the following as the home state: 5 (1) Home of record; 6 (2) Permanent Change of Station (PCS); or 7 (3) State of current residence if it is different than the PCS state or 8 home of record. 9 SECTION 6. ADVERSE ACTIONS 10 (a) A home state shall have exclusive power to impose adverse action against 11 a license issued by the home state. 12 (b) A home state may take adverse action based on the investigative 13 information of a remote state, so long as the home state follows its own procedures for 14 imposing adverse action. 15 (c) Nothing in this Compact shall override a member state's decision that 16 participation in an alternative program may be used in lieu of adverse action and that 17 such participation shall remain non-public if required by the member state's laws. 18 Member states must require licensees who enter any alternative programs in lieu of 19 discipline to agree not to practice in any other member state during the term of the 20 alternative program without prior authorization from such other member state. 21 (d) Any member state may investigate actual or alleged violations of the 22 statutes and rules authorizing the practice of physical therapy in any other member 23 state in which a physical therapist or physical therapist assistant holds a license or 24 compact privilege. 25 (e) A remote state shall have the authority to: 26 (1) Take adverse actions as set forth in Section 4(d) against a licensee's 27 compact privilege in the state; 28 (2) Issue subpoenas for both hearings and investigations that require 29 the attendance and testimony of witnesses, and the production of evidence. Subpoenas 30 issued by a physical therapy licensing board in a party state for the attendance and 31 33-LS0138\U CSSB 74(FIN) -12- SB0074B New Text Underlined [DELETED TEXT BRACKETED] testimony of witnesses, and/or the production of evidence from another party state, 1 shall be enforced in the latter state by any court of competent jurisdiction, according to 2 the practice and procedure of that court applicable to subpoenas issued in proceedings 3 pending before it. The issuing authority shall pay any witness fees, travel expenses, 4 mileage, and other fees required by the service statutes of the state where the witnesses 5 and/or evidence are located; and 6 (3) If otherwise permitted by state law, recover from the licensee the 7 costs of investigations and disposition of cases resulting from any adverse action taken 8 against that licensee. 9 (f) Joint Investigations 10 (1) In addition to the authority granted to a member state by its 11 respective physical therapy practice act or other applicable state law, a member state 12 may participate with other member states in joint investigations of licensees. 13 (2) Member states shall share any investigative, litigation, or 14 compliance materials in furtherance of any joint or individual investigation initiated 15 under the Compact. 16 SECTION 7. ESTABLISHMENT OF THE PHYSICAL THERAPY COMPACT 17 COMMISSION 18 (a) The Compact member states hereby create and establish a joint public 19 agency known as the Physical Therapy Compact Commission. 20 (1) The Commission is an instrumentality of the Compact states. 21 (2) Venue is proper and judicial proceedings by or against the 22 Commission shall be brought solely and exclusively in a court of competent 23 jurisdiction where the principal office of the Commission is located. The Commission 24 may waive venue and jurisdictional defenses to the extent it adopts or consents to 25 participate in alternative dispute resolution proceedings. 26 (3) Nothing in this Compact shall be construed to be a waiver of 27 sovereign immunity. 28 (b) Membership, Voting, and Meetings 29 (1) Each member state shall have and be limited to one delegate 30 selected by that member state's licensing board. 31 33-LS0138\U SB0074B -13- CSSB 74(FIN) New Text Underlined [DELETED TEXT BRACKETED] (2) The delegate shall be a current member of the licensing board, who 1 is a physical therapist, physical therapist assistant, public member, or the board 2 administrator. 3 (3) Any delegate may be removed or suspended from office as 4 provided by the law of the state from which the delegate is appointed. 5 (4) The member state board shall fill any vacancy occurring in the 6 Commission. 7 (5) Each delegate shall be entitled to one vote with regard to the 8 promulgation of rules and creation of bylaws and shall otherwise have an opportunity 9 to participate in the business and affairs of the Commission. 10 (6) A delegate shall vote in person or by such other means as provided 11 in the bylaws. The bylaws may provide for delegates' participation in meetings by 12 telephone or other means of communication. 13 (7) The Commission shall meet at least once during each calendar 14 year. Additional meetings shall be held as set forth in the bylaws. 15 (c) The Commission shall have the following powers and duties: 16 (1) Establish the fiscal year of the Commission; 17 (2) Establish bylaws; 18 (3) Maintain its financial records in accordance with the bylaws; 19 (4) Meet and take such actions as are consistent with the provisions of 20 this Compact and the bylaws; 21 (5) Promulgate uniform rules to facilitate and coordinate 22 implementation and administration of this Compact. The rules shall have the force and 23 effect of law and shall be binding in all member states; 24 (6) Bring and prosecute legal proceedings or actions in the name of the 25 Commission, provided that the standing of any state physical therapy licensing board 26 to sue or be sued under applicable law shall not be affected; 27 (7) Purchase and maintain insurance and bonds; 28 (8) Borrow, accept, or contract for services of personnel, including, but 29 not limited to, employees of a member state; 30 (9) Hire employees, elect or appoint officers, fix compensation, define 31 33-LS0138\U CSSB 74(FIN) -14- SB0074B New Text Underlined [DELETED TEXT BRACKETED] duties, grant such individuals appropriate authority to carry out the purposes of the 1 Compact, and to establish the Commission's personnel policies and programs relating 2 to conflicts of interest, qualifications of personnel, and other related personnel matters; 3 (10) Accept any and all appropriate donations and grants of money, 4 equipment, supplies, materials and services, and to receive, utilize and dispose of the 5 same; provided that at all times the Commission shall avoid any appearance of 6 impropriety and/or conflict of interest; 7 (11) Lease, purchase, accept appropriate gifts or donations of, or 8 otherwise to own, hold, improve or use, any property, real, personal or mixed; 9 provided that at all times the Commission shall avoid any appearance of impropriety; 10 (12) Sell convey, mortgage, pledge, lease, exchange, abandon, or 11 otherwise dispose of any property real, personal, or mixed; 12 (13) Establish a budget and make expenditures; 13 (14) Borrow money; 14 (15) Appoint committees, including standing committees composed of 15 members, state regulators, state legislators or their representatives, and consumer 16 representatives, and such other interested persons as may be designated in this 17 Compact and the bylaws; 18 (16) Provide and receive information from, and cooperate with, law 19 enforcement agencies; 20 (17) Establish and elect an Executive Board; and 21 (18) Perform such other functions as may be necessary or appropriate 22 to achieve the purposes of this Compact consistent with the state regulation of physical 23 therapy licensure and practice. 24 (d) The Executive Board shall have the power to act on behalf of the 25 Commission according to the terms of this Compact. 26 (1) The Executive Board shall be composed of nine members: 27 (A) Seven voting members who are elected by the Commission 28 from the current membership of the Commission; 29 (B) One ex-officio, nonvoting member from the recognized 30 national physical therapy professional association; and 31 33-LS0138\U SB0074B -15- CSSB 74(FIN) New Text Underlined [DELETED TEXT BRACKETED] (C) One ex-officio, nonvoting member from the recognized 1 membership organization of the physical therapy licensing boards. 2 (2) The ex-officio members will be selected by their respective 3 organizations. 4 (3) The Commission may remove any member of the Executive Board 5 as provided in bylaws. 6 (4) The Executive Board shall meet at least annually. 7 (5) The Executive Board shall have the following duties and 8 responsibilities: 9 (A) Recommend to the entire Commission changes to the rules 10 or bylaws, changes to this Compact legislation, fees paid by Compact member 11 states such as annual dues, and any commission Compact fee charged to 12 licensees for the compact privilege; 13 (B) Ensure Compact administration services are appropriately 14 provided, contractual or otherwise; 15 (C) Prepare and recommend the budget; 16 (D) Maintain financial records on behalf of the Commission; 17 (E) Monitor Compact compliance of member states and 18 provide compliance reports to the Commission; 19 (F) Establish additional committees as necessary; and 20 (G) Other duties as provided in rules or bylaws. 21 (e) Meetings of the Commission 22 (1) All meetings shall be open to the public, and public notice of 23 meetings shall be given in the same manner as required under the rulemaking 24 provisions in Section 9. 25 (2) The Commission or the Executive Board or other committees of 26 the Commission may convene in a closed, non-public meeting if the Commission or 27 Executive Board or other committees of the Commission must discuss: 28 (A) Non-compliance of a member state with its obligations 29 under the Compact; 30 (B) The employment, compensation, discipline or other 31 33-LS0138\U CSSB 74(FIN) -16- SB0074B New Text Underlined [DELETED TEXT BRACKETED] matters, practices or procedures related to specific employees or other matters 1 related to the Commission's internal personnel practices and procedures; 2 (C) Current, threatened, or reasonably anticipated litigation; 3 (D) Negotiation of contracts for the purchase, lease, or sale of 4 goods, services, or real estate; 5 (E) Accusing any person of a crime or formally censuring any 6 person; 7 (F) Disclosure of trade secrets or commercial or financial 8 information that is privileged or confidential; 9 (G) Disclosure of information of a personal nature where 10 disclosure would constitute a clearly unwarranted invasion of personal privacy; 11 (H) Disclosure of investigative records compiled for law 12 enforcement purposes; 13 (I) Disclosure of information related to any investigative 14 reports prepared by or on behalf of or for use of the Commission or other 15 committee charged with responsibility of investigation or determination of 16 compliance issues pursuant to the Compact; or 17 (J) Matters specifically exempted from disclosure by federal or 18 member state statute. 19 (3) If a meeting, or portion of a meeting, is closed pursuant to this 20 provision, the Commission's legal counsel or designee shall certify that the meeting 21 may be closed and shall reference each relevant exempting provision. 22 (4) The Commission shall keep minutes that fully and clearly describe 23 all matters discussed in a meeting and shall provide a full and accurate summary of 24 actions taken, and the reasons therefore, including a description of the views 25 expressed. All documents considered in connection with an action shall be identified 26 in such minutes. All minutes and documents of a closed meeting shall remain under 27 seal, subject to release by a majority vote of the Commission or order of a court of 28 competent jurisdiction. 29 (f) Financing of the Commission 30 (1) The Commission shall pay, or provide for the payment of, the 31 33-LS0138\U SB0074B -17- CSSB 74(FIN) New Text Underlined [DELETED TEXT BRACKETED] reasonable expenses of its establishment, organization, and ongoing activities. 1 (2) The Commission may accept any and all appropriate revenue 2 sources, donations, and grants of money, equipment, supplies, materials, and services. 3 (3) The Commission may levy on and collect an annual assessment 4 from each member state or impose fees on other parties to cover the cost of the 5 operations and activities of the Commission and its staff, which must be in a total 6 amount sufficient to cover its annual budget as approved each year for which revenue 7 is not provided by other sources. The aggregate annual assessment amount shall be 8 allocated based upon a formula to be determined by the Commission, which shall 9 promulgate a rule binding upon all member states. 10 (4) The Commission shall not incur obligations of any kind prior to 11 securing the funds adequate to meet the same; nor shall the Commission pledge the 12 credit of any of the member states, except by and with the authority of the member 13 state. 14 (5) The Commission shall keep accurate accounts of all receipts and 15 disbursements. The receipts and disbursements of the Commission shall be subject to 16 the audit and accounting procedures established under its bylaws. However, all 17 receipts and disbursements of funds handled by the Commission shall be audited 18 yearly by a certified or licensed public accountant, and the report of the audit shall be 19 included in and become part of the annual report of the Commission. 20 (g) Qualified Immunity, Defense, and Indemnification 21 (1) The members, officers, executive director, employees and 22 representatives of the Commission shall be immune from suit and liability, either 23 personally or in their official capacity, for any claim for damage to or loss of property 24 or personal injury or other civil liability caused by or arising out of any actual or 25 alleged act, error or omission that occurred, or that the person against whom the claim 26 is made had a reasonable basis for believing occurred within the scope of Commission 27 employment, duties or responsibilities; provided that nothing in this paragraph shall be 28 construed to protect any such person from suit and/or liability for any damage, loss, 29 injury, or liability caused by the intentional or willful or wanton misconduct of that 30 person. 31 33-LS0138\U CSSB 74(FIN) -18- SB0074B New Text Underlined [DELETED TEXT BRACKETED] (2) The Commission shall defend any member, officer, executive 1 director, employee or representative of the Commission in any civil action seeking to 2 impose liability arising out of any actual or alleged act, error, or omission that 3 occurred within the scope of Commission employment, duties, or responsibilities, or 4 that the person against whom the claim is made had a reasonable basis for believing 5 occurred within the scope of Commission employment, duties, or responsibilities; 6 provided that nothing herein shall be construed to prohibit that person from retaining 7 his or her own counsel; and provided further, that the actual or alleged act, error, or 8 omission did not result from that person's intentional or willful or wanton misconduct. 9 (3) The Commission shall indemnify and hold harmless any member, 10 officer, executive director, employee, or representative of the Commission for the 11 amount of any settlement or judgment obtained against that person arising out of any 12 actual or alleged act, error or omission that occurred within the scope of Commission 13 employment, duties, or responsibilities, or that such person had a reasonable basis for 14 believing occurred within the scope of Commission employment, duties, or 15 responsibilities, provided that the actual or alleged act, error, or omission did not result 16 from the intentional or willful or wanton misconduct of that person. 17 SECTION 8. DATA SYSTEM 18 (a) The Commission shall provide for the development, maintenance, and 19 utilization of a coordinated database and reporting system containing licensure, 20 adverse action, and investigative information on all licensed individuals in member 21 states. 22 (b) Notwithstanding any other provision of state law to the contrary, a member 23 state shall submit a uniform data set to the data system on all individuals to whom this 24 Compact is applicable as required by the rules of the Commission, including: 25 (1) Identifying information; 26 (2) Licensure data; 27 (3) Adverse actions against a license or compact privilege; 28 (4) Non-confidential information related to alternative program 29 participation; 30 (5) Any denial of application for licensure, and the reason(s) for such 31 33-LS0138\U SB0074B -19- CSSB 74(FIN) New Text Underlined [DELETED TEXT BRACKETED] denial; and 1 (6) Other information that may facilitate the administration of this 2 Compact, as determined by the rules of the Commission. 3 (c) Investigative information pertaining to a licensee in any member state will 4 only be available to other party states. 5 (d) The Commission shall promptly notify all member states of any adverse 6 action taken against a licensee or an individual applying for a license. Adverse action 7 information pertaining to a licensee in any member state will be available to any other 8 member state. 9 (e) Member states contributing information to the data system may designate 10 information that may not be shared with the public without the express permission of 11 the contributing state. 12 (f) Any information submitted to the data system that is subsequently required 13 to be expunged by the laws of the member state contributing the information shall be 14 removed from the data system. 15 SECTION 9. RULEMAKING 16 (a) The Commission shall exercise its rulemaking powers pursuant to the 17 criteria set forth in this Section and the rules adopted thereunder. Rules and 18 amendments shall become binding as of the date specified in each rule or amendment. 19 (b) If a majority of the legislatures of the member states rejects a rule, by 20 enactment of a statute or resolution in the same manner used to adopt the Compact 21 within 4 years of the date of adoption of the rule, then such rule shall have no further 22 force and effect in any member state. 23 (c) Rules or amendments to the rules shall be adopted at a regular or special 24 meeting of the Commission. 25 (d) Prior to promulgation and adoption of a final rule or rules by the 26 Commission, and at least thirty (30) days in advance of the meeting at which the rule 27 will be considered and voted upon, the Commission shall file a Notice of Proposed 28 Rulemaking: 29 (1) On the website of the Commission or other publicly accessible 30 platform; and 31 33-LS0138\U CSSB 74(FIN) -20- SB0074B New Text Underlined [DELETED TEXT BRACKETED] (2) On the website of each member state physical therapy licensing 1 board or other publicly accessible platform or the publication in which each state 2 would otherwise publish proposed rules. 3 (e) The Notice of Proposed Rulemaking shall include: 4 (1) The proposed time, date, and location of the meeting in which the 5 rule will be considered and voted upon; 6 (2) The text of the proposed rule or amendment and the reason for the 7 proposed rule; 8 (3) A request for comments on the proposed rule from any interested 9 person; and 10 (4) The manner in which interested persons may submit notice to the 11 Commission of their intention to attend the public hearing and any written comments. 12 (f) Prior to adoption of a proposed rule, the Commission shall allow persons to 13 submit written data, facts, opinions, and arguments, which shall be made available to 14 the public. 15 (g) The Commission shall grant an opportunity for a public hearing before it 16 adopts a rule or amendment if a hearing is requested by: 17 (1) At least twenty-five (25) persons; 18 (2) A state or federal governmental subdivision or agency; or 19 (3) An association having at least twenty-five (25) members. 20 (h) If a hearing is held on the proposed rule or amendment, the Commission 21 shall publish the place, time, and date of the scheduled public hearing. If the hearing is 22 held via electronic means, the Commission shall publish the mechanism for access to 23 the electronic hearing. 24 (1) All persons wishing to be heard at the hearing shall notify the 25 executive director of the Commission or other designated member in writing of their 26 desire to appear and testify at the hearing not less than five (5) business days before 27 the scheduled date of the hearing. 28 (2) Hearings shall be conducted in a manner providing each person 29 who wishes to comment a fair and reasonable opportunity to comment orally or in 30 writing. 31 33-LS0138\U SB0074B -21- CSSB 74(FIN) New Text Underlined [DELETED TEXT BRACKETED] (3) All hearings will be recorded. A copy of the recording will be made 1 available on request. 2 (4) Nothing in this section shall be construed as requiring a separate 3 hearing on each rule. Rules may be grouped for the convenience of the Commission at 4 hearings required by this section. 5 (i) Following the scheduled hearing date, or by the close of business on the 6 scheduled hearing date if the hearing was not held, the Commission shall consider all 7 written and oral comments received. 8 (j) If no written notice of intent to attend the public hearing by interested 9 parties is received, the Commission may proceed with promulgation of the proposed 10 rule without a public hearing. 11 (k) The Commission shall, by majority vote of all members, take final action 12 on the proposed rule and shall determine the effective date of the rule, if any, based on 13 the rulemaking record and the full text of the rule. 14 (l) Upon determination that an emergency exists, the Commission may 15 consider and adopt an emergency rule without prior notice, opportunity for comment, 16 or hearing, provided that the usual rulemaking procedures provided in the Compact 17 and in this section shall be retroactively applied to the rule as soon as reasonably 18 possible, in no event later than ninety (90) days after the effective date of the rule. For 19 the purposes of this provision, an emergency rule is one that must be adopted 20 immediately in order to: 21 (1) Meet an imminent threat to public health, safety, or welfare; 22 (2) Prevent a loss of Commission or member state funds; 23 (3) Meet a deadline for the promulgation of an administrative rule that 24 is established by federal law or rule; or 25 (4) Protect public health and safety. 26 (m) The Commission or an authorized committee of the Commission may 27 direct revisions to a previously adopted rule or amendment for purposes of correcting 28 typographical errors, errors in format, errors in consistency, or grammatical errors. 29 Public notice of any revisions shall be posted on the website of the Commission. The 30 revision shall be subject to challenge by any person for a period of thirty (30) days 31 33-LS0138\U CSSB 74(FIN) -22- SB0074B New Text Underlined [DELETED TEXT BRACKETED] after posting. The revision may be challenged only on grounds that the revision results 1 in a material change to a rule. A challenge shall be made in writing, and delivered to 2 the chair of the Commission prior to the end of the notice period. If no challenge is 3 made, the revision will take effect without further action. If the revision is challenged, 4 the revision may not take effect without the approval of the Commission. 5 SECTION 10. OVERSIGHT, DISPUTE RESOLUTION, AND ENFORCEMENT 6 (a) Oversight 7 (1) The executive, legislative, and judicial branches of state 8 government in each member state shall enforce this Compact and take all actions 9 necessary and appropriate to effectuate the Compact's purposes and intent. The 10 provisions of this Compact and the rules promulgated hereunder shall have standing as 11 statutory law. 12 (2) All courts shall take judicial notice of the Compact and the rules in 13 any judicial or administrative proceeding in a member state pertaining to the subject 14 matter of this Compact which may affect the powers, responsibilities or actions of the 15 Commission. 16 (3) The Commission shall be entitled to receive service of process in 17 any such proceeding, and shall have standing to intervene in such a proceeding for all 18 purposes. Failure to provide service of process to the Commission shall render a 19 judgment or order void as to the Commission, this Compact, or promulgated rules. 20 (b) Default, Technical Assistance, and Termination 21 (1) If the Commission determines that a member state has defaulted in 22 the performance of its obligations or responsibilities under this Compact or the 23 promulgated rules, the Commission shall: 24 (A) Provide written notice to the defaulting state and other 25 member states of the nature of the default, the proposed means of curing the 26 default and/or any other action to be taken by the Commission; and 27 (B) Provide remedial training and specific technical assistance 28 regarding the default. 29 (2) If a state in default fails to cure the default, the defaulting state may 30 be terminated from the Compact upon an affirmative vote of a majority of the member 31 33-LS0138\U SB0074B -23- CSSB 74(FIN) New Text Underlined [DELETED TEXT BRACKETED] states, and all rights, privileges and benefits conferred by this Compact may be 1 terminated on the effective date of termination. A cure of the default does not relieve 2 the offending state of obligations or liabilities incurred during the period of default. 3 (3) Termination of membership in the Compact shall be imposed only 4 after all other means of securing compliance have been exhausted. Notice of intent to 5 suspend or terminate shall be given by the Commission to the governor, the majority 6 and minority leaders of the defaulting state's legislature, and each of the member 7 states. 8 (4) A state that has been terminated is responsible for all assessments, 9 obligations, and liabilities incurred through the effective date of termination, including 10 obligations that extend beyond the effective date of termination. 11 (5) The Commission shall not bear any costs related to a state that is 12 found to be in default or that has been terminated from the Compact, unless agreed 13 upon in writing between the Commission and the defaulting state. 14 (6) The defaulting state may appeal the action of the Commission by 15 petitioning the U.S. District Court for the District of Columbia or the federal district 16 where the Commission has its principal offices. The prevailing member shall be 17 awarded all costs of such litigation, including reasonable attorney's fees. 18 (c) Dispute Resolution 19 (1) Upon request by a member state, the Commission shall attempt to 20 resolve disputes related to the Compact that arise among member states and between 21 member and non-member states. 22 (2) The Commission shall promulgate a rule providing for both 23 mediation and binding dispute resolution for disputes as appropriate. 24 (d) Enforcement 25 (1) The Commission, in the reasonable exercise of its discretion, shall 26 enforce the provisions and rules of this Compact. 27 (2) By majority vote, the Commission may initiate legal action in the 28 United States District Court for the District of Columbia or the federal district where 29 the Commission has its principal offices against a member state in default to enforce 30 compliance with the provisions of the Compact and its promulgated rules and bylaws. 31 33-LS0138\U CSSB 74(FIN) -24- SB0074B New Text Underlined [DELETED TEXT BRACKETED] The relief sought may include both injunctive relief and damages. In the event judicial 1 enforcement is necessary, the prevailing member shall be awarded all costs of such 2 litigation, including reasonable attorney's fees. 3 (3) The remedies herein shall not be the exclusive remedies of the 4 Commission. The Commission may pursue any other remedies available under federal 5 or state law. 6 SECTION 11. DATE OF IMPLEMENTATION OF THE INTERSTATE COMMISSION 7 FOR PHYSICAL THERAPY PRACTICE AND ASSOCIATED RULES, WITHDRAWAL, 8 AND AMENDMENT 9 (a) The Compact shall come into effect on the date on which the Compact 10 statute is enacted into law in the tenth member state. The provisions, which become 11 effective at that time, shall be limited to the powers granted to the Commission 12 relating to assembly and the promulgation of rules. Thereafter, the Commission shall 13 meet and exercise rulemaking powers necessary to the implementation and 14 administration of the Compact. 15 (b) Any state that joins the Compact subsequent to the Commission's initial 16 adoption of the rules shall be subject to the rules as they exist on the date on which the 17 Compact becomes law in that state. Any rule that has been previously adopted by the 18 Commission shall have the full force and effect of law on the day the Compact 19 becomes law in that state. 20 (c) Any member state may withdraw from this Compact by enacting a statute 21 repealing the same. 22 (1) A member state's withdrawal shall not take effect until six (6) 23 months after enactment of the repealing statute. 24 (2) Withdrawal shall not affect the continuing requirement of the 25 withdrawing state's physical therapy licensing board to comply with the investigative 26 and adverse action reporting requirements of this act prior to the effective date of 27 withdrawal. 28 (d) Nothing contained in this Compact shall be construed to invalidate or 29 prevent any physical therapy licensure agreement or other cooperative arrangement 30 between a member state and a non-member state that does not conflict with the 31 33-LS0138\U SB0074B -25- CSSB 74(FIN) New Text Underlined [DELETED TEXT BRACKETED] provisions of this Compact. 1 (e) This Compact may be amended by the member states. No amendment to 2 this Compact shall become effective and binding upon any member state until it is 3 enacted into the laws of all member states. 4 SECTION 12. CONSTRUCTION AND SEVERABILITY 5 This Compact shall be liberally construed so as to effectuate the purposes thereof. The 6 provisions of this Compact shall be severable and if any phrase, clause, sentence or provision 7 of this Compact is declared to be contrary to the constitution of any party state or of the 8 United States or the applicability thereof to any government, agency, person or circumstance 9 is held invalid, the validity of the remainder of this Compact and the applicability thereof to 10 any government, agency, person or circumstance shall not be affected thereby. If this 11 Compact shall be held contrary to the constitution of any party state, the Compact shall 12 remain in full force and effect as to the remaining party states and in full force and effect as to 13 the party state affected as to all severable matters. 14 * Sec. 8. AS 12.62.400(a), as amended by sec. 156, ch. 8, SLA 2022, is amended to read: 15 (a) To obtain a national criminal history record check for determining a 16 person's qualifications for a license, permit, registration, employment, or position, a 17 person shall submit the person's fingerprints to the department with the fee established 18 by AS 12.62.160. The department may submit the fingerprints to the Federal Bureau 19 of Investigation to obtain a national criminal history record check of the person for the 20 purpose of evaluating a person's qualifications for 21 (1) a license or conditional contractor's permit to manufacture, sell, 22 offer for sale, possess for sale or barter, traffic in, or barter an alcoholic beverage 23 under AS 04.09; 24 (2) licensure as a mortgage lender, a mortgage broker, or a mortgage 25 loan originator under AS 06.60; 26 (3) admission to the Alaska Bar Association under AS 08.08; 27 (4) licensure as a collection agency operator under AS 08.24; 28 (5) a certificate of fitness to handle explosives under AS 08.52; 29 (6) licensure as a massage therapist under AS 08.61; 30 (7) licensure to practice nursing or certification as a nurse aide under 31 33-LS0138\U CSSB 74(FIN) -26- SB0074B New Text Underlined [DELETED TEXT BRACKETED] AS 08.68; 1 (8) certification as a real estate appraiser under AS 08.87; 2 (9) a position involving supervisory or disciplinary power over a minor 3 or dependent adult for which criminal justice information may be released under 4 AS 12.62.160(b)(9); 5 (10) a teacher certificate under AS 14.20; 6 (11) a registration or license to operate a marijuana establishment 7 under AS 17.38; 8 (12) admittance to a police training program under AS 18.65.230 or for 9 certification as a police officer under AS 18.65.240 if that person's prospective 10 employer does not have access to a criminal justice information system; 11 (13) licensure as a security guard under AS 18.65.400 - 18.65.490; 12 (14) a concealed handgun permit under AS 18.65.700 - 18.65.790; 13 (15) licensure as an insurance producer, managing general agent, 14 reinsurance intermediary broker, reinsurance intermediary manager, surplus lines 15 broker, or independent adjuster under AS 21.27; 16 (16) serving and executing process issued by a court by a person 17 designated under AS 22.20.130; 18 (17) a school bus driver license under AS 28.15.046; 19 (18) licensure as an operator or an instructor for a commercial driver 20 training school under AS 28.17; 21 (19) registration as a broker-dealer, agent, investment adviser 22 representative, or investment adviser under AS 45.56.300 - 45.56.350; 23 (20) licensure, license renewal, certification, certification renewal, or 24 payment from the Department of Health of an individual and an entity subject to the 25 requirements for a criminal history check under AS 47.05.310, including 26 (A) a public home care provider described in AS 47.05.017; 27 (B) a provider of home and community-based waiver services 28 financed under AS 47.07.030(c); 29 (C) a case manager to coordinate community mental health 30 services under AS 47.30.530; 31 33-LS0138\U SB0074B -27- CSSB 74(FIN) New Text Underlined [DELETED TEXT BRACKETED] (D) an entity listed in AS 47.32.010(b) and (c), including an 1 owner, officer, director, member, partner, employee, volunteer, or contractor of 2 an entity; or 3 (E) an individual or entity not described in (A) - (D) of this 4 paragraph that is required by statute or regulation to be licensed or certified by 5 the Department of Health or that is eligible to receive payments, in whole or in 6 part, from the Department of Health to provide for the health, safety, and 7 welfare of persons who are served by the programs administered by the 8 Department of Health; 9 (21) employment as a village public safety officer under AS 18.65.672 10 or certification as a village public safety officer under AS 18.65.682; 11 (22) licensure, license renewal, certification, or certification renewal 12 by the Department of Family and Community Services of an individual or entity, or 13 payment from the Department of Family and Community Services to an individual or 14 entity, subject to the requirements for a criminal history check under AS 47.05.310 for 15 a foster home, child placement agency, and runaway shelter listed in AS 47.32.010(c), 16 including an owner, officer, director, member, partner, employee, volunteer, or 17 contractor of an entity; 18 (23) licensure as a physical therapist, physical therapist assistant, 19 occupational therapist, or occupational therapy assistant under AS 08.84. 20 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 TRANSITION: REGULATIONS. The Department of Commerce, Community, and 23 Economic Development and the State Physical Therapy and Occupational Therapy Board 24 may adopt regulations as necessary to implement the changes made by this Act. The 25 regulations take effect under AS 44.62 (Administrative Procedure Act), but not before the 26 effective date of the law implemented by the regulation. 27 * Sec. 10. Section 9 of this Act takes effect immediately under AS 01.10.070(c). 28 * Sec. 11. Except as provided in sec. 10 of this Act, this Act takes effect July 1, 2024. 29