HB 385-OCCUPATIONAL LICENSING FEES  [Contains discussion of HB 314.] 3:17:57 PM CHAIR SUMNER announced that the first order of business would be HOUSE BILL NO. 385, "An Act relating to occupational licensing fees." 3:18:15 PM REPRESENTATIVE DAVID EASTMAN, Alaska State Legislature, as prime sponsor, presented HB 385. He referred to a PowerPoint presentation, entitled "HB 385 Occupational License Fees" [hard copy included in the committee packet], and began on slide 2, "The Problem," which read as follows [original punctuation provided]: • High Volatility of License Fees as a Barrier to Entry • Excessive License Fees are a Detriment to Recruitment and Retention for the affected licensed career field • Military Spouses Also Impacted 3:21:01 PM REPRESENTATIVE EASTMAN continued to slide 3, "Solutions HB 385," which read as follows [original punctuation provided]: PROS • Reduction of Excessive Costs For Some • Volatility of License Fees Reduced CONS • No Fees For Those Who Do Not Practice Others Bear This Additional Burden Through Increased Fees • Personalized/Paper License Applications • Additional Staff Time To Process • Additional Costs Born By Department REPRESENTATIVE EASTMAN contrasted HB 385 with HB 314 on slide 4, "Solutions HB 314," which read as follows [original punctuation provided]: PROS • Reduction of Excessive Costs Due To Investigations • More Certain Fee Environment CONS • Costs of Investigations Shifted To The Department • Potential Moral Hazard 3:25:14 PM REPRESENTATIVE CARRICK observed that the cap would be 20 percent - or one-fifth - of total gross income. She asked how the bill sponsor arrived at that number. REPRESENTATIVE EASTMAN opined that anything higher than 20 percent would be obviously excessive and would discourage licensees from engaging in the occupation. 3:25:59 PM REPRESENTATIVE RUFFRIDGE asked whether the 20 percent cap would be a voluntary submission of gross income, such as a tax return. For example, if a licensee earned $100,00 per year, he asked whether the license fee would be assessed at $20,000. REPRESENTATIVE EASTMAN clarified that [the 20 percent would be calculated from] only the portion of income that relates to the license, which could not be assessed from a simple tax return. He suggested that the department could create a form for licensees to determine the dollar amount for their license- generated income. He pointed out that this option would only be exercised if the existing fee was in excess of that mount. REPRESENTATIVE RUFFRIDGE asked which license types would be most affected by the bill outside of midwives. REPRESENTATIVE EASTMAN said the target is career fields with excessive license [fees] and small applicant pools. 3:29:22 PM CHAIR SUMNER announced that HB 385 would be held over.