Legislative committee reviews finances of Tennessee regulatory boards; few fee changes expected

Nashville — The Commerce, Labor, Transportation and Agriculture joint evaluation committee met Jan. 13 for its statutorily required self-sufficiency hearing on professional regulatory boards and heard that most programs either meet the committee's reserve guidance or have recent fee increases aimed at restoring fiscal balance.

Assistant Commissioner Reed Witcher of the Tennessee Department of Commerce and Insurance told the committee the department aims for boards to hold reserves equal to about 1 to 2.5 times annual expenditures and offered updates on several programs. "Using guidance provided by this committee, our division aims for programs to have a reserve fund balance between 1 and 2.5 times annual expenditures," Witcher said.

Why it matters: the committee's review informs whether boards should pursue fee changes or other steps to become self-sustaining and fulfills a statutory reporting requirement. No formal committee action or votes were taken during the hearing.

Board-by-board summaries

Board of Accountancy: Chair Greg Gilbert said he has "served about a year and a half in the capacity of chair of the board," and described a deficit that predated his tenure. The board has operated at a deficit for the past two fiscal years but maintains a reserve greater than one year of expenditures. Assistant Commissioner Witcher said the board's annual expenditures over the last three fiscal years were in the "$960,000 to $1,000,000 range." Committee members pressed the board for the origin of the deficit; Gilbert pointed to state compensation adjustments as a major driver.

Cosmetology and Barber Examiners: Witcher said the board ran deficits in each of the last two fiscal years and currently holds a reserve slightly less than one year of expenditures. Revenues trailed expenditures by roughly 2% in each of the past two years. Witcher noted recent legislative changes, citing Public Chapter 524 (2025), which reduced the number of required shop inspections from annual to biannual and therefore lowered inspection-related costs. "At this time, a fee increase is not necessary," Witcher said.

Home Inspector Licensing Program: Glenn Kopchak, executive director, reported two years of deficits but a reserve balance that falls within the committee's 1.0 to 2.5 guidance. No fee adjustment was recommended at this time.

Motor Vehicle Commission: Denise Lawrence said the commission implemented a fee increase in September 2025 following a recommendation from the Government Operations Committee. That increase is expected to return the program to self-sufficiency within two years and sustain it for at least six years.

Scrap Metal Program: Department staff reported the program operated in the red the last two fiscal years but holds a reserve within the committee's guidance; no fee increase is needed.

Board of Funeral Directors and Embalmers: Executive director Robert Gribble and board representatives acknowledged deficits over the past two fiscal years and a current reserve of less than one year of expenditures. The board held a rulemaking hearing on Jan. 13, 2026, to adopt a fee increase; staff expect implementation later in the year and project the increase will return the program to self-sufficiency within two years. Robert Huerbel, the board's executive director at one point in the hearing, said, "Last year, we were up here because we had a $27,000 deficit."

Collection Service Board: The board ended the most recent fiscal year with a reserve of about 2.9, slightly above the committee's 2.5 target. Department staff said they will pursue a strategic spend-down to bring reserves below 2.5 over the next two fiscal years; no fee increase was recommended.

Detection Services Licensing Program: Ashton Bodie reported a fee increase implemented in June 2025 is expected to restore self-sufficiency within two years and maintain it for at least six years.

Committee reaction and next steps

Committee members asked how the department publicizes hearings and whether stakeholders had opportunities to comment; Witcher said board meetings include public-comment periods and the department would welcome those comments during board meetings. Representative Michael Parkinson praised the cosmetology board's work and said an economic impact report will show the industry's size. "We have an economic impact report that is gonna probably blow a lot of people's minds," Parkinson said.

The committee convened the statutory hearing, received the department's reports and took no formal action. The chair said the committee had met its statutory requirements and adjourned the self-sufficiency portion of the meeting before moving on to rule review.