Legislature(2003 - 2004)
04/27/2004 03:50 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 555-OCCUPATIONAL LICENSING FEES AND RECEIPTS CHAIR ANDERSON announced that the first order of business would be HOUSE BILL NO. 555, "An Act relating to occupational licensing fees and receipts." Number 0085 RICK URION, Director, Division of Occupational Licensing, Department of Community & Economic Development (DCED), reminded the committee that the division charges fees based on the cost to regulate the profession. One of the largest costs associated with the licensing programs are disciplinary actions. Until two years ago the fines collected from disciplinary actions were placed in the funds used to offset the costs of the particular profession. This legislation merely allows the division to take the fines collected from various disciplinary actions to be credited to that profession in order to offset the cost of collection. Mr. Urion noted that the [collection of fines] averages about $67,000 a year. Number 0233 REPRESENTATIVE ROKEBERG recalled that AS 08.01.065 requires that all professions be self-supporting, and therefore this legislation merely allows the fines to be credited toward licensure. Representative Rokeberg also recalled that a recent Real Estate Commission case went to major hearings, and inquired as to the cost of such. MR. URION said that he didn't know the exact cost, but the particular case with the Real Estate Commission was a considerable sum. He related that the fine itself was $25,000 and agreed with Representative Rokeberg that the cost [of the disciplinary process] could be over $100,000. In further response to Representative Rokeberg, Mr. Urion confirmed that currently the fine would have to be placed in the general fund rather than go toward the licensure fees, and therefore the licensees would have to pick up the cost of that [disciplinary] hearing. Number 0369 REPRESENTATIVE GUTTENBERG asked if there are any boards or commissions in which the state has a vested interest in having, but can't pay for themselves. He also asked if there has been a fine levied against a board or commission, which was cost prohibitive and couldn't be passed on to the members of the profession. MR. URION said that the division's purpose is public protection. He confirmed that there have been some expensive disciplinary actions, which have caused licensure fees to double. REPRESENTATIVE GUTTENBERG reiterated his question regarding whether expensive disciplinary actions have been so cost prohibitive that the members of a profession couldn't afford [the licensure fees] and left the profession. MR. URION explained that the division doesn't increase the fees to a point at which folks decide to leave the profession, an incremental approach over a period of years is taken. He mentioned the possibility of a proposal next session to create a pool to address those large [fee increases]. CHAIR ANDERSON closed public testimony. Number 0535 REPRESENTATIVE DAHLSTROM moved to report HB 555 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, it was so ordered.
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