03/13/2014 08:30 AM House FINANCE

HOUSE BILL NO. 239                                                                                                            
                                                                                                                                
     "An Act extending the termination  date of the Board of                                                                    
     Examiners in Optometry; and  providing for an effective                                                                    
     date."                                                                                                                     
                                                                                                                                
HOUSE BILL NO. 240                                                                                                              
                                                                                                                                
     "An Act extending the termination  date of the Board of                                                                    
     Chiropractic Examiners; and  providing for an effective                                                                    
     date."                                                                                                                     
                                                                                                                                
HOUSE BILL NO. 241                                                                                                            
                                                                                                                                
     "An Act extending the termination  date of the Board of                                                                    
     Marital  and  Family  Therapy;  and  providing  for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
HOUSE BILL NO. 242                                                                                                            
                                                                                                                                
     "An  Act extending  the termination  date of  the State                                                                    
     Physical  Therapy and  Occupational Therapy  Board; and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
8:37:22 AM                                                                                                                    
                                                                                                                                
DANIEL GEORGE, STAFF,  REPRESENTATIVE BILL STOLTZE, referred                                                                    
to  the  Department  of  Commerce,  Community  and  Economic                                                                    
Development Professional  Licensing Program's  Annual Report                                                                    
dated December 2013 (copy on  file). He relayed that numbers                                                                    
in  the  fiscal  notes  had been  derived  from  the  annual                                                                    
report.  He communicated  that there  were four  replacement                                                                    
fiscal notes for HB 239, HB 240, HB 241, and HB 242.                                                                            
                                                                                                                                
Mr.  George  addressed  the  fiscal note  for  HB  239.  The                                                                    
analysis in  the first three  paragraphs on page  2 remained                                                                    
the  same.  New  language  had been  added  related  to  the                                                                    
extension of  the Board of Examiners  in Optometry including                                                                    
a summary of the board's FY  12 through FY 13 biennium data,                                                                    
revenues,   expenditures,   biennium  surplus/deficit,   and                                                                    
ending   cumulative  surplus/deficit.   The  analysis   also                                                                    
included  a  description   of  the  FY  08   through  FY  11                                                                    
cumulative  data and  number of  licensees.  The format  was                                                                    
repeated  in  the  fiscal  notes  for  all  four  bills.  He                                                                    
communicated that the  board's revenues in FY  12/FY 13 were                                                                    
$74,540 and expenditures were $94,478.  There was a biennium                                                                    
deficit  of  $19,938 and  a  cumulative  surplus deficit  of                                                                    
$44,755.                                                                                                                        
                                                                                                                                
                                                                                                                                
8:39:49 AM                                                                                                                    
                                                                                                                                
Mr. George discussed the fiscal  note for HB 240. The second                                                                    
page of  the note  reflected the FY  12/FY 13  biennium data                                                                    
for the  extension of the  Board of  Chiropractic Examiners.                                                                    
The   board's   data    included   revenues   of   $179,215,                                                                    
expenditures  of  $168,800,  a  surplus of  $10,415,  and  a                                                                    
cumulative surplus of $80,344.                                                                                                  
                                                                                                                                
8:40:29 AM                                                                                                                    
                                                                                                                                
Mr.  George pointed  to  the  fiscal note  for  HB 241.  The                                                                    
second page of  the note reflected the FY  12/FY 13 biennium                                                                    
data for the extension Board  of Marital and Family Therapy.                                                                    
The board's data included  revenues of $63,165, expenditures                                                                    
of $85,197, a  deficit of $22,032, and  a cumulative surplus                                                                    
of $112,195.                                                                                                                    
                                                                                                                                
8:41:11 AM                                                                                                                    
                                                                                                                                
Mr. George addressed the fiscal  note for HB 242. The second                                                                    
page of  the note  reflected the FY  12/FY 13  biennium data                                                                    
for  the State  Physical  Therapy  and Occupational  Therapy                                                                    
Board.  The  board's  data included  revenues  of  $250,000,                                                                    
expenditures  of  $325,365,  a  deficit of  $75,365,  and  a                                                                    
cumulative deficit of $55,238.                                                                                                  
                                                                                                                                
Representative  Guttenberg  noted  that  the  OMB  component                                                                    
number [at the  top right of the first page]  on each of the                                                                    
fiscal notes was the same.  He wondered how the numbers were                                                                    
determined.  Mr.   George  deferred  the  question   to  the                                                                    
department.                                                                                                                     
                                                                                                                                
Co-Chair Stoltze noted that the  question would be addressed                                                                    
later in the  meeting. He relayed his intent  to address the                                                                    
bills one  at a time, beginning  with HB 239. He  added that                                                                    
the  bills had  been previously  heard and  public testimony                                                                    
had been taken.                                                                                                                 
                                                                                                                                
HOUSE BILL NO. 239                                                                                                            
                                                                                                                                
     "An Act extending the termination date of the Board of                                                                     
     Examiners in Optometry; and providing for an effective                                                                     
     date."                                                                                                                     
                                                                                                                                
                                                                                                                                
8:42:49 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LORA  REINBOLD, SPONSOR,  briefly  discussed                                                                    
the bill.                                                                                                                       
                                                                                                                                
Co-Chair Stoltze  asked about the  sponsor's vision  for the                                                                    
legislation.  Representative  Reinbold  wanted to  keep  the                                                                    
examiners in optometry in business.                                                                                             
                                                                                                                                
Representative Costello  noted that  the board  was carrying                                                                    
forward a  deficit. She wondered what  the legislature would                                                                    
be communicating by extending a board with a deficit.                                                                           
                                                                                                                                
8:45:36 AM                                                                                                                    
                                                                                                                                
Representative    Costello    reiterated    her    question.                                                                    
Additionally, she wondered how  the deficit would impact the                                                                    
department's  actions  moving  forward  related  to  setting                                                                    
board fees.                                                                                                                     
                                                                                                                                
DON  HABEGER, DIRECTOR,  DIVISION OF  CORPORATIONS, BUSINESS                                                                    
AND   PROFESSIONAL   LICENSING,  DEPARTMENT   OF   COMMERCE,                                                                    
COMMUNITY  AND   ECONOMIC  DEVELOPMENT,  replied   that  the                                                                    
division  recognized  that some  boards  were  in a  deficit                                                                    
position; the information had been  communicated in a report                                                                    
provided to  the legislature.  The department  was cognizant                                                                    
of  the  business  environment   and  was  working  to  make                                                                    
licensing fees less  onerous. Some of the  programs had seen                                                                    
100  percent  fee  increases; the  increases  represented  a                                                                    
hardship for members. The department  was taking some of the                                                                    
programs into compliance over a couple of cycles.                                                                               
                                                                                                                                
Representative  Costello  asked  for verification  that  the                                                                    
department  planned  to  adjust   fees  if  the  legislation                                                                    
passed. Mr. Habeger believed that  the fees for the Board of                                                                    
Examiners in Optometry had been  adjusted 100 percent in the                                                                    
last cycle to help the board catch up.                                                                                          
                                                                                                                                
Representative  Costello  asked  about efforts  to  increase                                                                    
board transparency. She  wondered if there was  an effort to                                                                    
share  information pertaining  to  a  board's fiscal  status                                                                    
online.                                                                                                                         
                                                                                                                                
Mr.  Habeger  replied that  the  department  was working  to                                                                    
increase  transparency.  He  spoke to  various  actions  the                                                                    
department  had  taken  towards the  goal.  He  required  an                                                                    
executive   member  of   the  division   staff  to   present                                                                    
information to  a board  at every  meeting; many  boards met                                                                    
quarterly.  Additionally, the  information  was discussed  6                                                                    
months  before a  board's fee  adjustment time.  Lastly, the                                                                    
division posted  the information  online on a  quarterly and                                                                    
year-end fiscal basis; the data  was available to the public                                                                    
on the division's website.                                                                                                      
                                                                                                                                
8:49:02 AM                                                                                                                    
                                                                                                                                
Representative  Guttenberg  noted  that  the  OMB  component                                                                    
number on  each of the fiscal  notes was the same.  He asked                                                                    
what  the   number  indicated.  Mr.  Habeger   deferred  the                                                                    
question.                                                                                                                       
                                                                                                                                
ARNOLD  LIEBELT, POLICY  ANALYST, OFFICE  OF MANAGEMENT  AND                                                                    
BUDGET,  OFFICE  OF  THE GOVERNOR,  answered  that  the  OMB                                                                    
component  number referred  to  how the  funding would  flow                                                                    
through  the budget.  The boards  under discussion  were all                                                                    
within the  same OMB  component number  and would  be broken                                                                    
out into detail within the department's budget.                                                                                 
                                                                                                                                
Representative Guttenberg  asked how the debts  were handled                                                                    
at the  end of  the fiscal year.  Mr. Habeger  answered that                                                                    
the  operating   budget  included  specific   language  that                                                                    
carried  forward  a  negative   and  positive  balance;  per                                                                    
statute,  the division  tracked and  carried the  balance as                                                                    
well.                                                                                                                           
                                                                                                                                
Representative Gara wondered how  shifting to board meetings                                                                    
by  teleconference would  impact  the state.  He noted  that                                                                    
members wanting  to travel on  their own could choose  to do                                                                    
so. He  spoke to  the idea  as a  cost savings  measure. Mr.                                                                    
Habeger    answered   that    boards   currently    utilized                                                                    
teleconferences in conjunction  with in-person meetings. For                                                                    
example, the  medical board  felt that  it was  necessary to                                                                    
meet in  urban and rural  communities to ensure that  it was                                                                    
in  touch with  its constituency.  The division  honored the                                                                    
desire of the board.                                                                                                            
                                                                                                                                
Representative  Gara wondered  if  the  division would  have                                                                    
power to  keep fees down  by asking boards to  hold meetings                                                                    
via teleconference.  Mr. Habeger replied that  he could make                                                                    
the determination, but did not believe it was always wise.                                                                      
                                                                                                                                
8:53:21 AM                                                                                                                    
                                                                                                                                
Representative Gara  asked the division to  maximize the use                                                                    
of  teleconference meetings  when possible.  He referred  to                                                                    
boards  in  deficit  and  asked  if  the  division  had  the                                                                    
discretion to  let them catch  up over  a two to  three year                                                                    
cycle. Mr.  Habeger replied in  the affirmative.  There were                                                                    
currently several programs catching up over multiple years.                                                                     
                                                                                                                                
Co-Chair  Stoltze  remarked  that  members  were  volunteers                                                                    
donating their  time. He  surmised that  they did  not enjoy                                                                    
taking  time away  from their  profession.  He believed  the                                                                    
larger cost  problem was related to  investigations that may                                                                    
not  be  as  well-rounded.  He  believed  the  members  were                                                                    
judicious related to cost.                                                                                                      
                                                                                                                                
Representative Thompson  noted that  most of the  boards had                                                                    
the best intentions to avoid  deficits; members raised their                                                                    
own  dues for  meeting travel.  He stated  that most  of the                                                                    
deficits  were caused  by investigations  and law  suits. He                                                                    
did not  believe members  could be told  how to  spend their                                                                    
money.                                                                                                                          
                                                                                                                                
Representative Gara agreed with  statements made by Co-Chair                                                                    
Stoltze and  Representative Thompson  related to  travel. He                                                                    
asked  if   the  Department  of  Law   (DOL)  conducted  the                                                                    
investigations. Mr.  Habeger replied  that the  division had                                                                    
its  own investigators  charged with  investigating business                                                                    
and  professional licensing.  There  were enforcement  staff                                                                    
for Title 8.                                                                                                                    
                                                                                                                                
8:57:00 AM                                                                                                                    
                                                                                                                                
Representative  Gara  pointed  to costs  charged  to  boards                                                                    
resulting from  investigations. He noted that  DOL sometimes                                                                    
billed an  hourly rate  that was much  higher than  the rate                                                                    
its  employees were  paid. He  wondered if  the boards  were                                                                    
charged  the actual  cost of  the investigator.  Mr. Habeger                                                                    
replied  that the  board  was charged  an  hourly rate.  The                                                                    
division's  investigators  positively  kept their  time;  if                                                                    
they  were  working  for  several  programs  they  kept  the                                                                    
information on their  time sheets by the half  hour as well.                                                                    
He added  that the investigators  were only charged  for the                                                                    
time they worked.                                                                                                               
                                                                                                                                
Representative  Gara  asked  if   the  hourly  rate  was  an                                                                    
accurate  reflection of  the cost  of the  investigator. Mr.                                                                    
Habeger answered that there was no markup charged.                                                                              
                                                                                                                                
8:58:37 AM                                                                                                                    
                                                                                                                                
Vice-Chair Neuman  MOVED to REPORT  HB 239 out  of committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
HB  239 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation and with one new  fiscal impact note from the                                                                    
House  Finance Committee  for  the  Department of  Commerce,                                                                    
Community and Economic Development.