04/22/1996 03:08 PM House L&C

 HB 416 - OMNIBUS STATE FEES & COST ASSESSMENTS                              
                                                                               
 Number 075                                                                    
                                                                               
 CHAIRMAN PETE KOTT announced the first order of business would be             
 HB 416, "An Act relating to fees or assessment of costs for certain           
 services provided by state government, including hearing costs                
 related to the real estate surety fund; fees for authorization to             
 operate a postsecondary educational institution or for an agent's             
 permit to perform services for a postsecondary educational                    
 institution; administrative fees for self-insurers in workers'                
 compensation; business license fees; fees for activities related to           
 coastal zone management, training relating to emergency management            
 response, regulation of  pesticides and broadcast chemicals, and              
 subdivision plans for sewage waste disposal or treatment; and                 
 providing for an effective date."                                             
                                                                               
 Number 102                                                                    
                                                                               
 REPRESENTATIVE KIM ELTON made a motion to CSHB 416, Version F, with           
 the attached fiscal notes out of the House Labor and Commerce                 
 Committee.                                                                    
                                                                               
 REPRESENTATIVE NORMAN ROKEBERG objected for the purpose of another            
 amendment.  He said he would offer an amendment to delete the                 
 section which relates to the surety bonds.  He said the reason is             
 offering the amendment is because of testimony given the previous             
 Friday by Ms. Reardon where she had already calculated the cost of            
 the hearing, support fees and licenses.                                       
                                                                               
 CHAIRMAN KOTT asked Representative Rokeberg to identify the lines.            
 He noted the committee is working from the committee substitute               
 dated 4/19/96, Version F, Cook.                                               
                                                                               
 Number 216                                                                    
                                                                               
 REPRESENTATIVE ROKEBERG indicated it is page 2, lines 9 through 17,           
 which is shown as Section 2.                                                  
                                                                               
 CHAIRMAN KOTT objected for the purpose of discussion.                         
                                                                               
 Number 269                                                                    
                                                                               
 REPRESENTATIVE ELTON pointed out that there is a motion on the                
 floor.  He indicated he would withdraw it at the Chair's request.             
 CHAIRMAN KOTT asked Representative Elton to withdraw his motion.              
                                                                               
 REPRESENTATIVE ROKEBERG moved that Section 2 be deleted on page 2,            
 lines 9 through 17.                                                           
                                                                               
 CHAIRMAN KOTT explained there is conceptual Amendment 3 to delete             
 Section 2 of the committee substitute.  He said he would object for           
 the purpose of discussion.                                                    
                                                                               
 REPRESENTATIVE ROKEBERG said he proposed the amendment because of             
 the testimony he heard from Catherine Reardon the Division of                 
 Occupational Licensing.  She testified that the adjustment in the             
 biannual license fee for real estate brokers, agents and associate            
 brokers was such that it included the costs of carrying out the               
 hearings.  If the committee approves this particular provision, the           
 department would be double dipping those costs as they would be               
 drawing monies from the surety fund to pay for hearings that are              
 already going to be paid for presumably out of the operating income           
 generated by the license fees.                                                
                                                                               
 Number 388                                                                    
                                                                               
 REPRESENTATIVE ELTON indicated the testimony he recalls is that               
 this section allows the division to draw on the surety fund for               
 those cases as the expenses were incurred rather than waiting until           
 the end of it and drawing down on the fund.  He said he thought he            
 had a further understanding that one of the concerns that they had            
 is that once that fund gets up to $500,000, any additional money              
 spills back over into the general fund.  This was a way of                    
 protecting the surety fund.   Representative Elton said he further            
 understood that the testimony indicated that the commission,                  
 itself, had recommended this change.                                          
                                                                               
 CHAIRMAN KOTT indicated that was his recollection.                            
                                                                               
 REPRESENTATIVE ROKEBERG said he doesn't disagree with what                    
 Representative Elton said, but she also testified that she was                
 double dipping.  In other words, she recovered the costs and the              
 estimates from the licensure fees.                                            
                                                                               
 CHAIRMAN KOTT said he seems to recall that testimony, but also that           
 it couldn't be helped based on how the two systems worked (indisc.)           
 to one another in that if in fact there was more in the fund....              
                                                                               
 REPRESENTATIVE ROKEBERG said if there are surplus funds in the                
 surety fund, it goes into the general fund.  The licensure fees are           
 adjusted biannually to make contribution if there is a shortfall in           
 the surety fund.                                                              
                                                                               
 Number 532                                                                    
                                                                               
 NANCY SLAGLE, Director, Division of Budget Review, Office of                  
 Management and Budget, Office of the Governor, came forward to                
 address the committee.  She said the committee is correct in what             
 has been stated.  However, when it comes to the setting of                    
 occupational licensing fees, Ms. Reardon stated that there is                 
 difficulty in trying to cut back in the amount you're charging                
 without having this particular legislation in place first.  You               
 then can go back and adjust those license fees based on HB 416 so             
 that there wouldn't be that double charging.  The money would be              
 expended from the surety fund in the future, not from the program             
 receipts.  You then can adjust those license fees in the future to            
 bring them back down in line to what your actual expenses are.  The           
 statutes covering occupational licensing requires that what your              
 charge covers you're expenses for the program.                                
                                                                               
 CHAIRMAN KOTT questioned where the Senate version of this bill is.            
                                                                               
 MS. SLAGLE indicated it is in the Senate Finance Committee.                   
                                                                               
 Number 652                                                                    
                                                                               
 CHAIRMAN KOTT stated he would still maintain his objection.                   
                                                                               
 REPRESENTATIVE GENE KUBINA said it sounds like Ms. Slagle is saying           
 that if this section is left in the bill, the fees would actually             
 go down.                                                                      
                                                                               
 Number 673                                                                    
                                                                               
 REPRESENTATIVE ROKEBERG withdrew his amendment.  He said if his               
 suspicions are correct, he would bring up his concern on the floor.           
                                                                               
 Number 697                                                                    
                                                                               
 REPRESENTATIVE ELTON made a motion to move CSHB 416, Version F,               
 with the attached fiscal notes, out of committee with individual              
 recommendations.                                                              
                                                                               
 CHAIRMAN KOTT asked if there was an objection.                                
                                                                               
 REPRESENTATIVE ROKEBERG asked for a brief at ease.                            
                                                                               
 CHAIRMAN KOTT called the committee back to order and asked if there           
 was an objection to moving the bill.  Hearing none, CSHB 416(L&C)             
 was moved out of the House Labor and Commerce Committee.