Legislature(2017 - 2018)SENATE FINANCE 532

04/12/2017 01:30 PM FINANCE

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* first hearing in first committee of referral
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+ Bills Previously Heard/Scheduled: TELECONFERENCED
Heard & Held
Moved CSSB 51(FIN) Out of Committee
SENATE BILL NO. 51                                                                                                            
"An  Act extending  the  termination  date  of the  Board  of                                                                   
Veterinary Examiners; and providing for an effective date."                                                                     
1:37:10 PM                                                                                                                    
Co-Chair  MacKinnon  announced that  a  CS had  already  been                                                                   
1:37:39 PM                                                                                                                    
AT EASE                                                                                                                         
1:37:52 PM                                                                                                                    
1:37:57 PM                                                                                                                    
LACEY SANDERS,  ANALYST, LEGISLATIVE FINANCE  DIVISION, (LFD)                                                                   
clarified  some previous  information  provided  by LFD.  She                                                                   
announced  that the fiscal  note for  extending the  Board of                                                                   
Veterinarian  Examiners  reflected approximately  $3600.  The                                                                   
information   presented   previously   contained   additional                                                                   
information.  The fiscal note  only reflected board  services                                                                   
and  travel, but  there  were  additional costs  above  those                                                                   
costs for  the board of  approximately $138,000.  Those costs                                                                   
would  be continued,  even without  the  continuation of  the                                                                   
board. She furthered  that LFD provided a projection  for the                                                                   
board  continuation  at  the   same  level  of  spending  and                                                                   
revenues.  She stated that  the projection  showed the  board                                                                   
in  a   deficit.  She  stressed   that  the   LFD  projection                                                                   
encouraged  the division  to provide  additional  information                                                                   
on  their  anticipated  revenues  would  be  for  2017,  that                                                                   
deficit projection might contain an adjustment.                                                                                 
Co-Chair  MacKinnon  wondered  whether  the actual  cost  was                                                                   
available.  She recalled an  increase from  $300 to  $500 for                                                                   
the licensees. She  asked what the department  had quantified                                                                   
for   expenses,  or   was  there   a   calendar  and   timing                                                                   
difference.  She remarked  that there  had been an  assertion                                                                   
that the  state was using a  fiscal year, and  the department                                                                   
was  using   a  calendar  year   because  of   the  licensure                                                                   
requirements.  Ms. Sanders  deferred to  the department.  She                                                                   
shared  that she  was provided  with  information within  the                                                                   
Professional Licensing  Report to the Legislature,  which was                                                                   
on a  calendar year  basis. She stated  that the  majority of                                                                   
the  revenue would  be collected  during  the current  fiscal                                                                   
year. She  could not  speak to  the department's  expenditure                                                                   
projections for  2017. She remarked  that the  department was                                                                   
closely monitoring each board.                                                                                                  
Senator  Olson  queried  a  comparison   to  other  board  of                                                                   
comparable  size and  comparable licensee  for the  services,                                                                   
travel, and fixed  costs. Ms. Sanders replied  that she could                                                                   
not  respond with  a comparison,  because she  looked at  the                                                                   
individual boards  on a case by  case basis. She  stated that                                                                   
each board  had its own set  of licensees and their  own sets                                                                   
of requirements.                                                                                                                
1:42:39 PM                                                                                                                    
SARA CHAMBERS,  DEPUTY DIRECTOR, CORPORATIONS,  BUSINESS, AND                                                                   
PROFESSIONAL LICENSING,  DIVISION OF DEPARTMENT  OF COMMERCE,                                                                   
COMMUNITY AND ECONOMIC DEVELOPMENT, introduced herself.                                                                         
Co-Chair MacKinnon  queried the projected expenses  to better                                                                   
understand  the  licensure  and licensee  deficits,  and  the                                                                   
strategy  for reversing  the deficits.  Ms. Chambers  replied                                                                   
that  the  licensing   fee  had  increased  for   FY  17  for                                                                   
veterinarians  from $300  to $500.  She  remarked that  there                                                                   
were no anomalies  with that increase. That  board was fairly                                                                   
conservative,  and comparable  to other  similar boards.  She                                                                   
agreed to provide further information.                                                                                          
Senator  von Imhof  wondered  whether  boards  set their  own                                                                   
fees based  on their  own determined  expenses. Ms.  Chambers                                                                   
responded  that statute  required each  licensing program  to                                                                   
pay 100  percent of its own  expenses. She stated  that there                                                                   
were 44  licensing programs in  the division, with 21  of the                                                                   
boards rolled  into the  professional licensing  fund source.                                                                   
She  remarked  that  there was  a  partnership  between  each                                                                   
board and the division in allocating expenses.                                                                                  
1:45:20 PM                                                                                                                    
Senator von Imhof  wondered how the board would  pay expenses                                                                   
during  a  time  of  board  deficit  reaction.  Ms.  Chambers                                                                   
replied that licensing  programs ran on a  biennial licensure                                                                   
cycle. She  stated that almost  every program would be  in an                                                                   
annual deficit, because  the funds would not  be fulfilled in                                                                   
the given  year. She furthered  that the boards were  able to                                                                   
roll forward  any surplus.  She announced  that the  goal was                                                                   
to identify a  "sweet spot" of surplus that  would carry over                                                                   
through the year without being exorbitant.                                                                                      
Vice-Chair Bishop looked at the one previous fiscal note.                                                                       
Vice-Chair  Bishop  MOVED to  REPORT  CSSB  51 (FIN)  out  of                                                                   
committee  with   individual  recommendations   and  attached                                                                   
fiscal note. There being NO OBJECTION, it was so ordered.                                                                       
CSSB  51 (FIN)  was  REPORTED  out of  committee  with a  "do                                                                   
pass" recommendation  and with a previously  published fiscal                                                                   
note:  FN  1(CED).  There  being  NO  OBJECTION,  it  was  so                                                                   
1:49:13 PM                                                                                                                    
AT EASE                                                                                                                         
1:51:22 PM                                                                                                                    

Document Name Date/Time Subjects
SB 83 ACoA ltr of support.pdf SFIN 4/12/2017 1:30:00 PM
SB 83
SB 83 Transmittal Letter.pdf SFIN 4/12/2017 1:30:00 PM
SB 83
SB 83 support.pdf SFIN 4/12/2017 1:30:00 PM
SB 83