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Bill advanced to force fee cuts when board fund balances reach three-year reserve
Summary
Representative Fran Kavanaugh told the committee HB 13 22 would require boards under Health and Labor and Licensing to reduce licensing fees once a three-year average fund balance covers three years of expenses; secretaries could choose reduction levels and must report annually.
Representative Fran Kavanaugh said HB 13 22 responds to concerns raised in budget hearings about growing fund balances held by certain licensing boards. She described the bill as setting a mechanism so that when a board's three-year average fund balance is large enough to cover three years of expenses, the secretary may reduce the fees charged to licensees.
"This sets the mechanism to where when they reach a 3 year average in their fund balance, that they've got enough to cover 3 years expenses that it's going to trigger that they'll start reducing their fees that they charge the people they license," Kavanaugh said. She added the bill would allow secretaries discretion on how much to reduce fees — up to a 95% reduction — and for how long, and would require an annual reporting obligation to ALC or the joint budget committee.
Senator Payton asked whether self-insurance or claims funds (he cited the auctioneers' fund that pays claims in place of a surety bond) would be covered. Kavanaugh said the language was developed with the Department of Labor and Licensing and intended to target the kinds of operating fund balances discussed in budget hearings rather than specialized claims funds.
Kavanaugh closed by saying the bill returns funds to the people who pay the fees and asked for a favorable vote. The committee carried the motion on a voice 'aye' vote; the transcript does not record individual roll-call tallies.
