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

  1. The board chair and DCBPL’s director should improve procedures and training to ensure applicants meet requirements prior to licensure.
  2. The board should adopt regulations for renewing outsourcing facilities and third-party logistics provider licenses.
  3. Applicable occupational boards and DCBPL’s director should continue to coordinate efforts to improve the monitoring and enforcement of CSPD requirements.
  4. DCCED’s commissioner should allocate sufficient resources to ensure licensees holding a DEA registration number are consistently recorded in DCBPL’s licensing database.
  5. DCCED’s commissioner should allocate sufficient resources to ensure the CSPD requirements are enforced.