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RLD asks to shift recurring duties to general fund as nonreverting sources dwindle
Summary
Regulation & Licensing Superintendent Clay Bailey told the committee several regulatory funds are depleted and asked for a substantial general‑fund shift to maintain inspections and core operations; he emphasized inspectors and front‑line staffing are essential and asked legislators to consider longer‑term funding changes.
The Regulation and Licensing Department told the committee that several dedicated, nonreverting funds have been drawn down and that RLD is seeking general‑fund support to maintain inspections and program operations.
"It's imperative we get this amount of money," Superintendent Clay Bailey said, explaining that Murph and other regulatory funds that historically supported program activity have been depleted and that inspectors and front‑line staff are essential to public safety and consumer protection.
Bailey explained RLD's overall budget request is a modest 3.5% increase when accounting for all funds, but a larger increase to the general fund (described in testimony as roughly a 52% increase to the general‑fund portion) to replace monies previously covered by nonreverting sources. He described specifics by division: construction industries, manufactured housing inspections, the securities unit (which returns substantial revenue to the general fund), and cannabis enforcement where vacancy rates remain high and new enforcement positions were recently authorized.
Members asked about interstate compacts for reciprocal licensing, the status of cannabis enforcement staffing, and manufactured housing oversight. Bailey said compacts will require legislation and that implementation costs (staffing, IT, space) must be assessed; he also urged that the committee consider moving certain recurring program costs to the general fund to avoid repeated shortfalls and supplementals.
No votes were taken. Bailey said RLD will provide additional details and the committee asked staff to consider the operational consequences of funding choices for inspections and public safety responsibilities.
