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.