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HB 90: "An Act relating to occupational licensing fees; relating to an occupational investigation surcharge; and providing for an effective date."

00 HOUSE BILL NO. 90 01 "An Act relating to occupational licensing fees; relating to an occupational investigation 02 surcharge; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 08.01.065(a) is amended to read: 05 (a) Except for business licenses, the department shall adopt regulations that 06 establish the amount and manner of payment of 07 (1) application fees, examination fees, license fees, registration fees, 08 permit fees, [INVESTIGATION FEES,] and all other fees as appropriate for the 09 occupations covered by this chapter; 10 (2) a pro rata investigation surcharge as appropriate for all 11 licensees regulated by this chapter. 12 * Sec. 2. AS 08.01.065(c) is amended to read: 13 (c) Except as provided in (f) - (i) of this section, the department shall establish 14 fee levels under (a)(1) [(a)] of this section so that the total amount of fees collected for

01 an occupation approximately equals the actual licensing and administrative 02 [REGULATORY] costs for the occupation. The department shall annually review 03 each fee level to determine whether the licensing and administrative 04 [REGULATORY] costs of each occupation are approximately equal to fee collections 05 related to that occupation. If the review indicates that an occupation's fee collections 06 and licensing and administrative [REGULATORY] costs are not approximately 07 equal, the department shall calculate fee adjustments and adopt regulations under 08 (a)(1) [(a)] of this section to implement the adjustments. In January of each year, the 09 department shall report on all fee levels and revisions for the previous year under this 10 subsection to the office of management and budget. If a board regulates an occupation 11 covered by this chapter, the department shall consider the board's recommendations 12 concerning the occupation's fee levels and licensing and administrative 13 [REGULATORY] costs before revising fee schedules to comply with this subsection. 14 [IN THIS SUBSECTION, "REGULATORY COSTS" MEANS COSTS OF THE 15 DEPARTMENT THAT ARE ATTRIBUTABLE TO REGULATION OF AN 16 OCCUPATION PLUS 17 (1) ALL EXPENSES OF THE BOARD THAT REGULATES THE 18 OCCUPATION IF THE BOARD REGULATES ONLY ONE OCCUPATION; 19 (2) THE EXPENSES OF A BOARD THAT ARE ATTRIBUTABLE 20 TO THE OCCUPATION IF THE BOARD REGULATES MORE THAN ONE 21 OCCUPATION.] 22 * Sec. 3. AS 08.01.065(f) is amended to read: 23 (f) Notwithstanding (c) of this section, the department shall establish fee levels 24 under (a)(1) [(a)] of this section so that the total amount of fees collected by the State 25 Board of Registration for Architects, Engineers, and Land Surveyors approximately 26 equals the total licensing and administrative [REGULATORY] costs of the 27 department and the board for all occupations regulated by the board. The department 28 shall set the fee levels for the issuance and renewal of a certificate of registration 29 issued under AS 08.48.211 so that the fee levels are the same for all occupations 30 regulated by the board. 31 * Sec. 4. AS 08.01.065(g) is amended to read:

01 (g) Notwithstanding (c) of this section, the department shall establish fee 02 levels under (a)(1) [(a)] of this section so that the total amount of fees collected by the 03 department for all occupations regulated under AS 08.11 approximately equals the 04 total licensing and administrative [REGULATORY] costs of the department for all 05 occupations regulated by the department under AS 08.11. The department shall set the 06 fee levels for the issuance and renewal of licenses issued under AS 08.11 so that the 07 fee levels are the same for all occupations regulated by the department under 08 AS 08.11. 09 * Sec. 5. AS 08.01.065(h) is amended to read: 10 (h) Notwithstanding (c) of this section, the department shall establish fee 11 levels under (a)(1) [(a)] of this section so that the total amount of fees collected by the 12 Board of Barbers and Hairdressers approximately equals the total licensing and 13 administrative [REGULATORY] costs of the department, the board, and the 14 Department of Environmental Conservation for all occupations regulated by the board. 15 For purposes of this subsection, the licensing and administrative [REGULATORY] 16 costs of the Department of Environmental Conservation for the occupations regulated 17 by the board include the cost of inspections under AS 08.13.210(b), the cost of 18 developing and adopting regulations under AS 44.46.020 for barbershop, hairdressing, 19 manicuring, esthetics, body piercing, ear piercing, and tattooing and permanent 20 cosmetic coloring establishments, and the cost to the Department of Environmental 21 Conservation of enforcing those regulations except for the enforcement costs relating 22 to ear piercing establishments. The department shall set the fee levels for the issuance 23 and renewal of a practitioner's license issued under AS 08.13.100 so that the license 24 and license renewal fees are the same for all occupations regulated by the Board of 25 Barbers and Hairdressers. 26 * Sec. 6. AS 08.01.065(i) is amended to read: 27 (i) Notwithstanding (c) of this section, the department shall establish fee levels 28 under (a)(1) [(a)] of this section so that the total amount of fees collected by the 29 Department of Commerce, Community, and Economic Development for specialty 30 contractors, home inspectors, and associate home inspectors approximately equals the 31 total licensing and administrative [REGULATORY] costs of the department for

01 those three registration categories. The department shall set the fee levels for the 02 issuance and renewal of a certificate of registration issued under AS 08.18 so that the 03 fee levels are the same for all three of these registration categories and so that the fee 04 level for a home inspector with a joint registration is not different from the fee level 05 for a home inspector who does not have a joint registration. In this subsection, "joint 06 registration" has the meaning given in AS 08.18.171. 07 * Sec. 7. AS 08.01.065 is amended by adding new subsections to read: 08 (j) The department shall establish an investigation surcharge under (a)(2) of 09 this section so that the surcharge is the same for each licensee and the total amount of 10 surcharges collected for all licensees approximately equals the actual investigation 11 costs for all occupations licensed under this chapter. The department shall annually 12 review the surcharge to determine whether the investigation costs of all occupations 13 are approximately equal to surcharge collections for all licensees. If the review 14 indicates that the investigation surcharge and investigation costs are not approximately 15 equal, the department shall calculate surcharge adjustments and adopt regulations to 16 implement the adjustments. In January of each year, the department shall report on the 17 surcharge and revisions for the previous year to the office of management and budget. 18 (k) In this section, 19 (1) "investigation costs" means costs of the department that are 20 attributable to disciplinary investigations and actions involving a licensee, or a person 21 engaged in unlicensed practice, under this chapter, including legal and actual costs 22 associated with investigations, complaints, hearings, mediation, and other related 23 costs; 24 (2) "licensing and administrative costs" means costs of the department 25 that are attributable to the licensing and administration of an occupation, excluding 26 investigation costs, plus 27 (A) all expenses of the board that regulates the occupation if 28 the board regulates only one occupation; 29 (B) the expenses of a board that are attributable to the 30 occupation if the board regulates more than one occupation. 31 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to

01 read: 02 APPLICABILITY. This Act applies to an application for initial licensure or licensure 03 renewal under AS 08 submitted on or after January 1, 2018. 04 * Sec. 9. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 TRANSITION: REGULATIONS. The Department of Commerce, Community, and 07 Economic Development may immediately adopt regulations necessary to implement the 08 changes made by this Act. The regulations take effect under AS 44.62 (Administrative 09 Procedure Act), but not before January 1, 2018. 10 * Sec. 10. Section 9 of this Act takes effect immediately under AS 01.10.070(c). 11 * Sec. 11. Except as provided in sec. 10 of this Act, this Act takes effect January 1, 2018.