01/25/1994 01:35 PM Senate L&C

 SENATOR KELLY introduced HB 294 (EXTEND THE BOARD OF PHARMACY)                
 sponsored by REPRESENTATIVE SEAN PARNELL, and invited KARL LUCK,              
 Director of the Division of Occupational Licensing for the Dept. of           
 Commerce and Economic Development, to testify on the bill.                    
                                                                               
 MR. LUCK stated the department was in favor of the recommendation             
 by the auditors to extend this board, and he commented on the                 
 fiscal note showing the revenues did not equal the annual cost of             
 the operations, until last May when the fees were adjusted for all            
 of the professions.  He explained that as all of the professions              
 renew their licenses their fees will cover the exact cost of                  
 operating each of the individual boards.                                      
                                                                               
 SENATOR KELLY questioned this change in fees, and MR. LUCK answered           
 it was pro-rationed for each individual board, explaining there               
 were now 32 separate budgets instead of one budget for the whole              
 Division of Occupational Licensing.  He explained the current                 
 budgeting process within the Division of Occupational Licensing.              
                                                                               
 SENATOR SALO questioned how a professional person would know how              
 much their license would cost.  MR. LUCK said the fees were set in            
 regulation, and he explained how they were established.  SENATOR              
 SALO asked what the fees are now, and MR. LUCK did not have that              
 information with him.  He offered to provide it to her, and she               
 accepted.                                                                     
                                                                               
 SENATOR LINCOLN questioned the auditor's recommendation on the                
 extension of the Board of Pharmacy to June 30, 2003 and the date of           
 the bill as 1997.  She asked for the reason for the difference.               
                                                                               
 Number 051                                                                    
                                                                               
 MR. LUCK explained to SENATOR LINCOLN the governor had disagreed              
 with the recommendations from the Legislative Auditor to push the             
 licenses out to a 10 year window, because it would limit the                  
 governor's ability to cut costs or boards if needed.                          
                                                                               
 SENATOR KELLY quoted an auditor's report that a four year sunset is           
 one of the shortest in all the states, with most states having a              
 longer sunset provision.                                                      
                                                                               
 SENATOR LINCOLN asserted boards have been eliminated before their             
 expiration date.  SENATOR KELLY agreed the legislature could                  
 abolish the board any time they liked, and suggested an expiration            
 date of 2000.                                                                 
                                                                               
 The sponsor, REPRESENTATIVE PARNELL, had no problems with the                 
 extension, but he thought there was a statutory provision                     
 prohibiting a ten year extension.                                             
                                                                               
 SENATOR KELLY suggested using 1999, but returning to the original             
 if it was not possible.                                                       
                                                                               
 SENATOR LINCOLN referred to the fiscal note by COMMISSIONER PAUL              
 FUHS, and asked whether the fees would meet the cost.  MR. LUCK               
 assured her it was being done and explained how all the fees were             
 adjusted.                                                                     
                                                                               
 SENATOR RIEGER moved to amend the date to 1999 in HB 294 (EXTEND              
 THE BOARD OF PHARMACY).  Without objections, SENATOR KELLY                    
 announced the adoption of CSHB 294(L&C).                                      
                                                                               
 REPRESENTATIVE PARNELL testified that AS 44.66.010 speaks to the              
 termination of boards and commissions, with a process for                     
 termination.  He thought the statute gave the committee authority             
 to extend the date to 1999, and he thanked the committee.                     
                                                                               
 SENATOR SHARP moved to pass SENATE CS FOR HOUSE BILL NO. 294(L&C)             
 (EXTEND THE BOARD OF PHARMACY) from committee with individual                 
 recommendations.  Without objections, so ordered.