Legislature(1999 - 2000)
02/28/2000 03:28 PM House L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 418-INSURANCE AND OCCUPATIONAL LICENSE FEES CHAIRMAN ROKEBERG announced the next order of business would be HOUSE BILL NO. 418, "An Act relating to program receipts collected by the division of insurance and to program receipts collected by the Department of Community and Economic Development for occupational licenses; and providing for an effective date." Number 0516 REPRESENTATIVE HALCRO made a motion to adopt the proposed committee substitute for HB 418 [Version G, 1-LS1500\G, Utermohle, 2/25/00]. There being no objection, the proposed CS, Version G, was adopted as a working draft. CHAIRMAN ROKEBERG commented that there have been years of frustration about the way the budget bill was handled. Version G proceeds to add receipts for the insurance program of the Department of Community and Economic Development (DCED) under Title 28 regarding occupational licensing. It also adds the Pioneers' Home Care and Support receipts, which is consistent with SB 111. Number 0641 JEFF BUSH, Deputy Commissioner, Department of Community and Economic Development, came forward to testify on HB 418, Version G. He commented: This has been an ongoing problem, as the chair pointed out, for several years that we've had relating to our fee-generated agencies, agencies that are, by statute, required to pay for their activities by fees generated by the program. These particular programs, both in insurance and in occupational licensing, are not allowed by statute to collect above their operating expenses which are still subject to appropriation by this body. Therefore, the problems arise when you have things such as unallocated cuts to the department in terms of expenditure authority. We end up with expenditure authority that actually ends up being less than the receipt authority that we have or the receipts that come in for the programs. We then have situations where we have essentially over collected fees and we have very frustrated licensees out there who say, "We don't mind the fees we're paying", this is a very common theme we get, "We don't mind the fees we're paying, we just want to be able to, we want to have the service for those fees that we pay." And they don't understand a budgetary system that says you can't spend the money, it just has to sit and roll forward on an annual basis in the general fund. We appreciate this for occupational licensing and insurance and, actually, we would hope that as this bill makes progress, we would continue dialogue on a couple of other programs that have similar issues, one of them being ASMI [Alaska Seafood Marketing Institute]...which pays for itself strictly through taxes collected from the fishing industry on a voluntary basis, and also for Banking and Securities [Division of Banking, Securities and Corporations, DCED] which actually collects fees far in excess of what it actually expends to run the program. But, for the moment, we are very satisfied with this piece of legislation and fully support it. Number 0800 CHAIRMAN ROKEBERG stated that the only reason ASMI or the Division of Banking, Securities and Corporations was not included was because the statutory framework right now is much simpler because the amounts collected under the Division of Insurance go directly to the Department of Revenue. MR. BUSH said he understands that, and DCED is struggling with the same issues. He is not suggesting an amendment to do that. He reiterated he would like to continue a dialogue, if the bill continues to move, and find a way in which to do the same thing for other agencies as well. Number 0882 CATHERINE REARDON, Director, Division of Occupational Licensing, Department of Community and Economic Development, came forward to testify on HB 418, Version G. She strongly supports the bill and appreciates it being introduced. CHAIRMAN ROKEBERG asked Ms. Reardon to give one example of why the bill needs to be done and why the licensees want to spend more money. MS. REARDON replied: One example would be enforcement of licensing laws. We have a large number of complaints from citizens and other licensed professionals about acts that may violate the licensing laws, but we don't have the ability to purchase more legal assistance from the Department of Law to prosecute those cases and so we end up closing them without going forward and presenting the case against applicants. And that is one significant frustration on the part of boards and a lot of licensees who want to follow in the law. CHAIRMAN ROKEBERG requested that Ms. Reardon write a letter for the bill packet with a list of various things in each board and commission about how they want them to spend more money. Number 0966 SHARON MACKLIN, Lobbyist, Alaska Professional Design Council (APDC), came forward to testify on HB 418, Version G. She indicated APDC is very much in support of the bill. She provided two examples of why APDC would like the bill to pass. The Architects, Engineers and Land Surveyors Board (AELS) has had a very hard time keeping staff for the last few years. She believes they have had three or four staff people because the rate they are paid is fairly low for the type of experience that is needed. She hopes their pay rate can be increased in order to retain staff. Travel is another concern. The Board members have not been able to go to national meetings which she believes is important for their continuing education. The AELS Board and APDC are willing to pay more fees in order to purchase these additional services. CHAIRMAN ROKEBERG stated: The frustration by the Occupational Licensing people is a child of the Legislature. The Legislature has statutorily required that each occupational license be self-supportive. Then we found ourselves putting those license fees in the general fund revenue side and then the various boards and commissions wanted to do something. For example, continuing education and things of that nature, their hands are tied because the Legislature refuses or feels constrained in giving them appropriation power because of the impact on our budget gap and the fiscal situation of the state, when, in fact, these organizations wish to charge themselves more money to do more things. Number 1127 REPRESENTATIVE HALCRO made a motion to move HB 418, Version G, out of committee with individual recommendations and the attached fiscal notes. There being no objection, CSHB 418(L&C) moved out of the House Labor and Commerce Standing Committee.
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