STAFF REPORT ON LICENSING / REGULATORY AGENCIES
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1 EXHIBIT E STAFF REPORT ON LICENSING / REGULATORY AGENCIES PREPARED FOR THE GOVERNMENT ACCOUNTABILITY AND EFFICIENCY REVIEW SUBCOMMITTEE OF THE JOINT COMMITTEE ON STATE AGENCIES AND GOVERNMENTAL AFFAIRS March 13, 2006 Prepared By The Research Services Division Bureau of Legislative Research
2 TABLE OF CONTENTS PAGE Report Objectives... 1 Disclaimers... 1 Summary of Findings... 2 Summary of Research... 3 Possible Alternatives for Subcommittee Consideration... 3 Agencies Reviewed: Arkansas Appraiser and Licensing Certification Board... 4 Arkansas Board of Dispensing Opticians... 5 Arkansas Board of Examiners in Counseling... 6 Arkansas Board of Health Education...7 Arkansas Board of Hearing Instrument Dispensers... 8 Arkansas Board of Podiatric Medicine...9 Arkansas Board of Private Investigators and Private Security Agencies Arkansas Cemetery Board Arkansas Dietetics Licensing Board Arkansas Fire Protection Licensing Board Supporting Research Schedules: Schedule 1 - Summary of State Approaches for Professional Licensing Schedule 2 - General Features of Centralized Regulatory Approach Schedule 3 - General Features of Licensing Agencies Reviewed Schedule 4 - Summary of Regulatory Agencies Reviewed Schedule 5 - Summary of Licensing Agencies' Positions and Costs in Arkansas Schedule 6 - Costs of Professional Licensing Agencies in Other States Schedule 7 - States with Central Administrative Hearing Panels Appendix: Summary of Staff Procedures... 25
3 STAFF REPORT ON LICENSING / REGULATORY AGENCIES REPORT OBJECTIVES This report has been prepared by the Research Services Division of the Bureau of Legislative Research to provide limited staff analysis on the applicable review criteria provided by Act 2218 of In particular, the objectives of our review were to: Determine whether agency objectives and services are consistent with authorizing legislation. Assess the utilization and results of agency services based upon statistical information and other available information and compare to selected other states. Determine whether the agency operates in an efficient manner. To identify any considerations relevant to potential consolidation, transfer of programs or possible duplications of services for consideration by the Subcommittee. Identify any significant areas of concern relating to applicable administrative and regulatory review criteria. To summarize features of the operations of regulatory agencies in Arkansas and compare the operation of regulatory agencies in Arkansas to other states. DISCLAIMERS Our review was not intended to be a performance audit under applicable governmental auditing standards. We have attempted to identify the sources of information presented in the report. Due to limited staff resources and the limited scope of our review, data has not been independently verified. 1
4 SUMMARY FINDINGS: AUTHORIZATION OF SERVICES Services provided by all of the agencies reviewed appear consistent with authorizing legislation. UTILIZATION AND RESULTS OF AGENCY SERVICES Services of the agencies reviewed are being utilized. Statistics for each agency are presented on pages EFFICIENCY o The operating costs of each agency reviewed were modest. Comments on each specific agency are presented on pages Additionally, some considerations relevant to the use of technology and fiscal procedures are summarized on page 21. Of particular note is the general reliance on the DFA Service Bureau for entry of agency transactions into the AASIS System (8 of 10 agencies reviewed) and the lack of on-line services by some of the agencies reviewed. o As discussed more fully throughout this report, many states accomplish similar licensing and regulatory functions using one or more umbrella agencies to provide general administrative support services to the various regulatory boards. POTENTIAL CONSOLIDATION, DUPLICATION OR PROGRAM TRANSFER o See comment above and supporting research schedules regarding the use of umbrella administrative support agencies in other states. o A Fire Protection Board regulating only individuals and companies installing portable fixed fire protection systems or sprinkler systems was not noted with same regularity in other states as the other Boards reviewed. REGULATORY AND ADMINISTRATIVE REVIEW A number of states utilize central administrative hearing agencies to separate the functions of an agency making regulations and handling compliance hearings relating to such regulations. See Schedule 7, page 25. 2
5 SUMMARY OF RESEARCH o Thirty states (and additionally the District of Columbia) have one or more umbrella agencies providing support services to licensing boards. Many of the states that use this approach separate business professions and occupations from health care professions. As a generalization, the use of technology to provide services to licensees and citizens seemed more advanced than was noted in the review of the agencies presented in this report. See Schedule 1 for a synopsis of the states using an umbrella approach and a list of states that predominately have autonomous licensing agencies. o Eighteen states were noted as having a centralized administrative hearing agency or office. It was common to find that the type of cases heard included matters pertaining to professional licensure (although this was not found in every state). See Schedule 7, page 25. POSSIBLE OPTIONS FOR COMMITTEE CONSIDERATION / ACTION o Continue current model of each regulatory agency operating autonomously (and as a separate budget unit). o Expand central support services to provide standardized licensing software / procedures and standardized information technology services such as on-line and searchable database of licensees, while generally maintaining the separate status of each agency. o Continue the boards with further deliberation by the Subcommittee regarding the possible consolidation of the boards into one or more umbrella agencies. Additional steps might include the development of a business plan prepared by the Executive branch identifying options, timeframes and other considerations related to such a transition. o Further deliberation by the Subcommittee regarding the creation of an independent hearing office for regulatory matters, including matters pertaining to professional licensing boards. o In addition to the options above, consider the potential to combine the functions of the Fire Protection Board with another board or agency dealing with fire prevention and protection matters or with contractors in general. 3
6 ARKANSAS APPRAISER LICENSING AND CERTIFICATION BOARD PURPOSE: Licensing and regulation of Real Estate Appraisers FY05 STATISTICS: Licensees Investigations Hearings / Reviews Sanctions FY06 BUDGET SUMMARY Positions (authorized) 3 Personnel $213,403 Operating Costs 159,678 Board Member Per Diem 9,000 Total $382,081 FUNDING SOURCES: License fees, seminar registration, interest, miscellaneous REVIEW CRITERIA Assessment of need and utilization of agency services Agency objectives, extent to which they have been achieved, any additional functions and related authority. Potential duplication and possible consolidation Regulatory Administrative (EEOC, procurement policies, conflict of Interest, FOI) Efficiency Whether changes are needed in state statutes Effect of federal intervention or loss of federal funds if agency is abolished REVIEW FINDINGS Services are needed and are being utilized. Agency seems to be meeting objectives. No duplication noted. Administrative Procedures Act applicable. Report indicates that hearing officers are used for formal hearings. No significant issues noted. See Schedule 4, page 21 and Summary of Findings for applicable comments. See Possible Options Discussion. Title XI of the Federal Financial Institutions Reform, Recovery and Enforcement Act (12 U.S.C, 331 et. seq.) requires the use of state licensed / certified appraiser for federal transactions. Source of Information for Statistical and Fiscal Data: Agency Report submitted to the Subcommittee 4
7 ARKANSAS BOARD OF DISPENSING OPTICIANS PURPOSE: License and regulate dispensing opticians (includes laboratory work and dispensing of eyeglasses, spectacles or related parts on the written prescriptions of ophthalmologists or optometrists). FY05 STATISTICS: Licensees Investigations Hearings / Reviews Sanctions FY06 BUDGET SUMMARY Positions (authorized) 2 Personnel $15,771 Operating Costs 24,100 Board Member Per Diem Total $39,871 FUNDING SOURCES : License fees REVIEW CRITERIA Assessment of need and utilization of agency services Agency objectives, extent to which they have been achieved, any additional functions and related authority. Potential duplication and possible consolidation Regulatory Administrative (EEOC, procurement policies, conflict of Interest, FOI) Efficiency Whether changes are needed in state statutes Effect of federal intervention or loss of federal funds if agency is abolished REVIEW FINDINGS Services are needed and are being utilized. Agency seems to be meeting objectives. No duplication noted. Administrative Procedures Act applicable. Report indicates that services of an investigator may be obtained if needed. No significant issues noted. See Schedule 4, page 21 and Summary of Findings for applicable comments. See Possible Options Discussion. Not applicable. Source of Information for Statistical and Fiscal Data: Agency Report submitted to the Subcommittee 5
8 ARKANSAS BOARD OF EXAMINERS IN COUNSELING PURPOSE: Licensing and regulation of Counselors and Marriage and Family Therapists. FY05 STATISTICS: Licensees Investigations Hearings / Reviews Sanctions FY06 BUDGET SUMMARY Positions (authorized) 3 Regular, 2 Extra Help Personnel $117,367 Operating Costs 78,760 Board Member Per Diem Total $196,127 FUNDING SOURCES: License fees REVIEW CRITERIA Assessment of need and utilization of agency services Agency objectives, extent to which they have been achieved, any additional functions and related authority. Potential duplication and possible consolidation Regulatory Administrative (EEOC, procurement policies, conflict of Interest, FOI) Efficiency Whether changes are needed in state statutes Effect of federal intervention or loss of federal funds if agency is abolished REVIEW FINDINGS Services are needed and are being utilized. Agency seems to be meeting objectives. No duplication noted. Administrative Procedures Act applicable. Report indicates that Arkansas a leader in this area. No significant issues noted. See Schedule 4, page 21 and Summary of Findings for applicable comments. Noteworthy that the Board provides online and will soon add on-line testing / grading services. Board contracts with INA for web site maintenance. See Possible Options Discussion. Not applicable. Source of Information for Statistical and Fiscal Data: Agency Report submitted to the Subcommittee 6
9 BOARD OF HEALTH EDUCATION PURPOSE: Certification and regulation of persons who hold themselves under the title of Certified Health Education Specialist (CHES) or Certified Public Health Educator (CPHE). FY05 STATISTICS: Licensees Investigations Hearings / Reviews Sanctions FY06 BUDGET SUMMARY Positions (authorized) Personnel Operating Costs $ Board Member Per Diem Total $ FUNDING SOURCES: License fees REVIEW CRITERIA Assessment of need and utilization of agency services Agency objectives, extent to which they have been achieved, any additional functions and related authority. Potential duplication and possible consolidation Regulatory Administrative (EEOC, procurement policies, conflict of Interest, FOI) Efficiency Whether changes are needed in state statutes Effect of federal intervention or loss of federal funds if agency is abolished REVIEW FINDINGS Services are needed and are being utilized. Agency seems to be meeting objectives. No duplication noted. Administrative Procedures Act applicable. No significant issues noted. See Schedule 4, page 21 and Summary of Findings for applicable comments. See Possible Options Discussion. Not applicable. Source of Information for Statistical and Fiscal Data: Agency Report submitted to the Subcommittee 7
10 ARKANSAS BOARD OF HEARING INSTRUMENT DISPENSERS PURPOSE: Licensing and regulation of persons fitting or dispensing hearing instruments. FY05 STATISTICS: Licensees Investigations Hearings / Reviews Sanctions FY06 BUDGET SUMMARY Positions (authorized) 3 Personnel $15,071 Operating Costs 10,044 Board Member Per Diem Total $25,115 FUNDING SOURCES: License fees REVIEW CRITERIA Assessment of need and utilization of agency services Agency objectives, extent to which they have been achieved, any additional functions and related authority. Potential duplication and possible consolidation Regulatory REVIEW FINDINGS Services are needed and are being utilized. Agency seems to be meeting objectives. No duplication noted. Administrative Procedures Act applicable. Administrative (EEOC, procurement policies, conflict of Interest, FOI) Efficiency Whether changes are needed in state statutes Effect of federal intervention or loss of federal funds if agency is abolished No significant issues noted. See Schedule 4, page 21 and Summary of Findings for applicable comments. See Possible Options Discussion. Not applicable. Source of Information for Statistical and Fiscal Data: Agency Report submitted to the Subcommittee 8
11 ARKANSAS BOARD OF PODIATRIC MEDICINE PURPOSE: Licensing and regulation of podiatric physicians. FY05 STATISTICS: Licensees Investigations Hearings / Reviews Sanctions FY06 BUDGET SUMMARY Positions (authorized) 0 Personnel Operating Costs $4,948 Board Member Per Diem Total $4,948 FUNDING SOURCES : License and testing fees, fines. REVIEW CRITERIA Assessment of need and utilization of agency services Agency objectives, extent to which they have been achieved, any additional functions and related authority. Potential duplication and possible consolidation Regulatory REVIEW FINDINGS Services are needed and are being utilized. Agency seems to be meeting objectives. No duplication noted. Administrative Procedures Act applicable. Administrative (EEOC, procurement policies, conflict of Interest, FOI) Efficiency Whether changes are needed in state statutes Effect of federal intervention or loss of federal funds if agency is abolished No significant issues noted. See Schedule 4, page 21 and Summary of Findings for applicable comments. See Possible Options Discussion. Not applicable. Source of Information for Statistical and Fiscal Data: Agency Report submitted to the Subcommittee 9
12 ARKANSAS BOARD OF PRIVATE INVESTIGATORS AND PRIVATE SECURITY AGENCIES PURPOSE: Licensing and Regulation of private investigators and private security agencies. FY05 STATISTICS: Licensees Investigations Hearings / Reviews Sanctions FY06 BUDGET SUMMARY Positions (authorized) Personnel $255,747 Operating Costs 176,038 Board Member Per Diem Total $431,785 FUNDING SOURCES : License fees and fines REVIEW CRITERIA Assessment of need and utilization of agency services Agency objectives, extent to which they have been achieved, any additional functions and related authority. Potential duplication and possible consolidation Regulatory REVIEW FINDINGS Services are needed and are being utilized. Agency seems to be meeting objectives. No duplication noted. Administrative Procedures Act applicable. Administrative (EEOC, procurement policies, conflict of Interest, FOI) Efficiency Whether changes are needed in state statutes Effect of federal intervention or loss of federal funds if agency is abolished No significant issues noted. See Schedule 4, page 21 and Summary of Findings for applicable comments. See Possible Options Discussion. Not applicable. Source of Information for Statistical and Fiscal Data: Agency Report submitted to the Subcommittee 10
13 ARKANSAS CEMETERY BOARD PURPOSE: Regulation of companies operating perpetual care cemeteries, including ensuring the physical care of the cemeteries and the financial soundness of companies operating them. FY05 STATISTICS: Licensees Investigations Hearings / Reviews Sanctions FY06 BUDGET SUMMARY Positions (authorized) 0 Personnel * (see note below) Operating Costs $74,425 Board Members Stipends 1,500 Loans 50,000 Total $125,925 * Staff support provided by Arkansas Securities Department FUNDING SOURCES: Fees REVIEW CRITERIA Assessment of need and utilization of agency services Agency objectives, extent to which they have been achieved, any additional functions and related authority. Potential duplication and possible consolidation Regulatory Administrative (EEOC, procurement policies, conflict of Interest, FOI) Efficiency Whether changes are needed in state statutes Effect of federal intervention or loss of federal funds if agency is abolished REVIEW FINDINGS Services are needed and are being utilized. Agency seems to be meeting objectives. The provision of support services by the Arkansas Securities Department (as authorized by ACA ) appears unusual. Administrative Procedures Act applicable. No significant issues noted. See Schedule 4, page 21 and Summary of Findings for applicable comments. See Possible Options Discussion. Not applicable. Source of Information for Statistical and Fiscal Data: Agency Report submitted to the Subcommittee 11
14 ARKANSAS DIETETICS LICENSING BOARD PURPOSE: Licensing and regulation of dietitians. FY05 STATISTICS: Licensees Investigations Hearings / Reviews Sanctions FY06 BUDGET SUMMARY Positions (authorized) 1 (part time) Personnel $23,137 Operating Costs 8,229 Board Member Per Diem Total $31,366 FUNDING SOURCES: License Fees, Seminar Registration, Interest, Miscellaneous REVIEW CRITERIA Assessment of need and utilization of agency services Agency objectives, extent to which they have been achieved, any additional functions and related authority. Potential duplication and possible consolidation Regulatory REVIEW FINDINGS Services are needed and are being utilized. Agency seems to be meeting objectives. No duplication noted. Administrative Procedures Act applicable. Administrative (EEOC, procurement policies, conflict of Interest, FOI) Efficiency Whether changes are needed in state statutes Effect of federal intervention or loss of federal funds if agency is abolished No significant issues noted. See Schedule 4, page 21 and Summary of Findings for applicable comments. See Possible Options Discussion. Not applicable. Source of Information for Statistical and Fiscal Data: Agency Report submitted to the Subcommittee 12
15 ARKANSAS FIRE PROTECTION LICENSING BOARD PURPOSE: Licensing and regulation of persons and businesses selling or installing portable fixed fire protection systems or sprinkler systems. FY05 STATISTICS: Licensees Investigations Hearings / Reviews Sanctions FY06 BUDGET SUMMARY Positions (authorized) 2 Personnel $ 69,383 Operating Costs 40,725 Total $110,108 FUNDING SOURCES : Fees REVIEW CRITERIA Assessment of need and utilization of agency services Agency objectives, extent to which they have been achieved, any additional functions and related authority. Potential duplication and possible consolidation Regulatory Administrative (EEOC, procurement policies, conflict of Interest, FOI) Efficiency Whether changes are needed in state statutes Effect of federal intervention or loss of federal funds if agency is abolished REVIEW FINDINGS Services are needed and are being utilized. See remarks under "Potential duplication and possible consolidation" below. Agency seems to be meeting objectives. No duplication noted. However, a separate Board regulating sprinkler or other fire suppressant systems was not consistently noted in a limited review of selected states. In some instances, this type of service appeared to fall under the applicable Contractor Board. Instances were also noted of regulation by a Fire Safety or Prevention Division that included the State Fire Marshal. Administrative Procedures Act applicable. No significant issues noted. See Schedule 4, page 21 and Summary of Findings for applicable comments. See Possible Options Discussion. Not applicable. Source of Information for Statistical and Fiscal Data: Agency Report submitted to the Subcommittee 13
16 Schedule 1 SUMMARY OF STATE APPROACHES FOR PROFESSIONAL LICENSING State Regulatory Agency No. of Regulated Professions/Occupations Services Availability Alaska Division of Corporations, Business and Professional Licensing of the Department of Commerce, Community and Economic Development 40+ professions or occupations Searchable database Colorado Division of Regulations within the Department of Regulatory Agencies Connecticut Department of Consumer Protection (includes contractors, architects, engineers, pharmacists and many trades such as plumbing, electrical, elevator, manufactured homes - does not include health care, accountancy, etc.) 17 boards, 181 license or registration types, about 208,000 licenses and registrations Searchable database; on-line renewal pending Department of Public Health (includes nursing, dental, physicians, EMT, cosmeticians, barbers, etc.) 181,000+ licensees reported for 2005 calendar year Searchable database Delaware Division of Professional Licensure within the Department of State 32 boards or commissions, approximately 50,000 licensees overall (7,817 new licenses and16,854 reported for FY 2004) District of Columbia Business and Professional Licensing Administration of the Department of Consumer and Regulatory Affairs 72,000 licensees, 127 occupations and license categories, 18 professional boards and commissions Florida Department of Business and Professional Regulation 1 million licensees, 200 license types Department of Health - Medical Quality Assurance 22 boards, 6 councils or committees - six types of facilities and 40+ professions Georgia Professional Licensing Boards Division within the Office of the Secretary of State 380,000 licensees, 64 trades or professions, 34 boards Hawaii Professional and Vocational Licensing Division of the Department of Commerce and Consumer Affairs 45 professions and vocations, 25 professional boards Idaho Some boards are separate; however, there is a Bureau of Occupational Licensing serving approximately 20 boards Source of Information: Review of Agency web sites 14
17 Schedule 1 Illinois State Regulatory Agency Division of Professional Regulation within the Department of Financial and Professional Regulation No. of Regulated Professions/Occupations (Includes business, occupational and health related disciplines) Indiana Indiana Professional Licensing Agency 24 Health related boards or commissions and 15 business or occupational boards or commissions Iowa Maine Maryland Professional Licensing Division within the Department of Commerce Bureau of Professional Licensure with the Department of Health Some boards are independent, such as Medical Examiners, Nursing, and Pharmacy Office of Licensing and Registration within the Department of Professional and Financial Regulation Support for health related professions by the Department of Health and Mental Hygiene; Division of Occupational and Professional Licensing within the Department of Labor, Licensing and Regulation 6 Boards (regulating Accountancy, Architects, Engineers & Land Surveyors, Real Estate, Real Estate Appraiser, Landscape Architects) approx. 34,000 licensees 19 boards or examiners for health related professions, approximately 90,000 individuals Services Availability Massachusetts Division of Professional Licensure within the Office of Consumer Affairs and Business Regulations 330,000 licensees, 40+ trades and professions and 29 boards Does not appear to be available Michigan Bureau of Health Professions within the Department of Community Health 19 health related boards Bureau of Commercial Services (Licensing Division) within the Department of Labor and Economic Growth 27 professions or occupations Missouri Division of Professional Registration within the Department of Economic Development 39 licensing boards and commissions involving approximately 400,000 licensees Source of Information: Review of Agency web sites 15
18 Schedule 1 State Montana Regulatory Agency Two bureaus with the Department of Labor and Industry: Business and Occupational Licensing Bureau and the Health Care Licensing Bureau No. of Regulated Professions/Occupations New Mexico Regulation and Licensing Department 29 boards and commissions New Jersey New York Division of Consumer Affairs (of Office of the Attorney General) within the Department of Law and Public Safety Office of the Professions (within the Education Department) 41 boards and committees, 80 professions, approximately 600,000 licensees 31 professions Services Availability renewal for a few of the professions renewal for a few professions Department of State - Division of Licensing Services Pennsylvania Bureau of Professional and Occupational Affairs of the Department of State 27 professional and occupational boards and commissions Rhode Island Department of Business Regulation (Banking, Insurance, Securities, Accountancy, Real Estate and a number of occupations) Department of Health - Office of Health Professionals Regulation Administrative and Regulatory functions for 35 boards in 65 health occupations, involving approximately 72,000 individuals Searchable database South Carolina Department of Labor, Licensing and Regulation, Division of Professional and Occupational Licensing 37 professional and occupational licensing boards Searchable database Tennessee Division of Regulatory Boards of the Department of Commerce and Insurance 22 boards and commissions (generally not health care, except for inclusion of the Board of Pharmacy); approximately 650,000 licensees Department of Health - Division of Health Related Boards Administrative support to 26 boards, committees or councils Source of Information: Review of Agency web sites 16
19 Utah State Regulatory Agency Division of Occupational and Professional Licensing within the Department of Commerce No. of Regulated Professions/Occupations Approximately 60 professional boards, approximately 151,000 licensees Schedule 1 Services Availability Vermont Office of Professional Regulation - Secretary of State 40 professions Not noted Virginia Virginia Department of Professional and Occupational Regulation (an agency with the Commerce and Trade Secretariat) 30+ professions through 19 boards 300,000+ licensees renewal Department of Health Professions 13 health related boards renewal Washington Department of Licensing (certain business professions and occupations) 27 professions and occupations involving approximately 225,000 individuals or businesses renewal Health Professions Quality Assurance Office within the Department of Health (Health Care) 270,000 + health care providers, 57 health care professions, 16 boards and commissions, 8 advisory commissions. Searchable database Wisconsin Department of Regulation and Licensing Approximately 27 boards renewal Wyoming Professional Licensing Division within the Department of Administration and Information Supports or operates with 31 licensing boards Not noted States with Autonomous Regulatory Boards Alabama Kentucky Nevada Oklahoma Arkansas Louisiana New Hampshire Oregon Arizona Minnesota North Carolina South Dakota California Mississippi North Dakota Texas Kansas Nebraska Ohio West Virginia Source of Information: Review of Agency web sites 17
20 Schedule 2 GENERAL FEATURES OF CENTRALIZED REGULATORY APPROACH A. LEGISLATION - Provisions for the authority and duties of the centralized or umbrella oversight agency and the authority of the respective licensing boards. Typically followed by a chapter for each respective profession. B. INDIVIDUAL BOARDS - Continue to exercise responsibilities for determining qualifications and continued good standing in a particular profession. C. ADMINISTRATIVE DUTIES OF OVERSIGHT AGENCY OR AGENCY PROVIDING CENTRALIZED ADMINISTRATIVE SUPPORT MAY INCLUDE THE FOLLOWING: o funds management o licensing application and record-keeping (searchable database) o periodic reporting of statistical information o arrangements for examinations o centralized investigative services o monitor Board actions for compliance with the Administrative Procedures Act o adjustment of license costs to cover expenses D. IMPLEMENTATION ALTERNATIVES NOTED AMONG THE STATES: o Separate regulatory and licensing department o Separate division or office within one or more Executive agency; frequently involving the grouping of business and occupational disciplines in one agency and health care disciplines in another agency o Some types of professions licensed by the Secretary of State in a couple of states o At least one case noted of administrative support provided by the general state government finance and administration agency 18
21 Schedule 3 GENERAL FEATURES OF LICENSING BOARDS REVIEWED A. Each licensing agency a separate agency reporting to the Governor. B. Cash fund agencies funded by fees paid by licensees. C. A separate appropriation bill for each licensing agency (involves assignment of analyst(s) at DFA - Office of Budget and the Bureau of Legislative Research, separate biennial budget hearings. D. Separate audits by the Division of Legislative Audit. Lack of control over cash transactions due to limited number of staff a common finding in smaller boards. E. Most licensing agencies dependent upon DFA Service Bureau for entry of financial transactions into AASIS. F. Varying levels of the use of technology with regard to on-line services and lack of standardization of licensing software. No centralized statewide electronic service for checking licensure status for all professions. G. Investigations typically carried out by the staff of a particular board or under the oversight of a particular board. H. Most boards in Arkansas follow Administrative Procedures Act for hearings with assistance available from the Attorney General's Office (A few Arkansas boards follow rules other than Administrative Procedures Act rules and some agencies utilize inhouse or outside Counsel). Board decisions can be appealed to a circuit court. 19
22 AGENCY Schedule 4 SUMMARY OF REGULATORY AGENCIES REVIEWED NUMBER OF LICENSEES OR REGULATED ENTITIES NUMBER OF SANCTIONS FY05 LICENSING SOFTWARE USED ON-LINE LICENSE RENEWAL (YES/NO) DEPENDENT UPON AASIS SERVICE BUREAU SEGREGATION OF DUTIES FINDING IN LAST AUDIT REPORT (YES/NO) Arkansas Appraiser Licensing and Certification Board OUTSOURCED TO DIS YES YES Yes (Year ended June 30, 2004) Arkansas Board of Dispensing Opticians Q & A NO YES Yes (Two year period ended June 30, 2003) Arkansas Board of Examiners in Counseling OUTSOURCED TO INA YES (CONTRACT WITH INA) YES No - (Year ended June 30, 2004) Arkansas Board of Health Education Arkansas Board of Hearing Instrument Dispensers Arkansas Board of Podiatric Medicine 55 0 NONE NO YES Separate Audit Report Not Found 74 0 NONE NO YES Yes - (Two year period ended June 30, 2004) (2004) NONE NO YES Yes (Two year period ended June 30, 2003) Arkansas Board of Private Invest. & Private Security Agencies FOXPRO NO No (through Arkansas State Police ) Separate Audit Report Not Found Arkansas Cemetery Board 98 4 NONE REPORTED NO NO (through Securities Department) No - For the year ended June 30, 2004 Arkansas Dietetics Licensing Board NO (report cites issue of related documents YES Yes (Two year period ended June 30, 2003) Arkansas Fire Protection Licensing Board MICROSOFT ACCESS DATABASE NO YES Yes (Two year period ended June 30, 2003) Source of Information: Agency Report submitted to the Subcommittee 20
23 Schedule 5 SUMMARY OF LICENSING AGENCIES' POSITIONS AND COSTS IN ARKANSAS For the Year Ended June 30, 2005 Agency Name FY05 Actual Regular Salary Positions FY05 Actual Extra Help Positions FY05 Expenditures Abstractor's Board of Examiners 1 0 $ 25, State Board of Public Accountancy , State Board of Acupuncture and Related Techniques Board of Examiners of Alcoholism & Drug Abuse Counselors Arkansas Appraiser Licensing and Certification Board 0 0 7, , , State Board of Architects , Arkansas Athletic Commission , Arkansas State Board of Athletic Training 0 0 7, State Auctioneer's Licensing Board , Professional Bail Bondsman Licensing Board , State Board of Barber Examiners , Arkansas Burial Association Board , Arkansas Cemetery Board , Arkansas State Board of Chiropractic Examiners , State Board of Collection Agencies , Contractor's Licensing Board ,241, State Board of Cosmetology , Board of Examiners in Counseling , State Board of Dental Examiners , Arkansas Dietetics Licensing Board , State Board of Disease Intervention Specialists* State Board of Dispensing Opticians , Arkansas State Board of Embalmers & Funeral Directors ,
24 Schedule 5 Agency Name FY05 Actual Regular Salary Positions FY05 Actual Extra Help Positions FY05 Expenditures Arkansas State Board of Registration for Professional Engineers Arkansas Fire Protection Licensing Board , , Board of Registration for Foresters , Board of Registration for Professional Geologists Arkansas Board of Hearing Instrument Dispensers , , State Board of Health Education Arkansas Home Inspector Registration Board* Arkansas State Board of Registered Interior Designers Arkansas State Board of Landscape Architects Arkansas Manufactured Home Commission Arkansas State Board of Massage Therapy , , , , , State Medical Board ,278, Arkansas State Board of Nursing ,522, State Board of Optometry , State Board of Pharmacy , Arkansas State Board of Physical Therapy , Arkansas Board of Podiatric Med State Board of Private Career Education State Board of Examiners in Psychology , , Arkansas Real Estate Commission , State Board of Sanitarians 0 0 2, Social Work Licensing Board ,
25 Schedule 5 Agency Name FY05 Actual Regular Salary Positions FY05 Actual Extra Help Positions FY05 Expenditures Arkansas State Board of Registration for Professional Soil Classifiers Ark. Bd. of Examiners in Speech Pathology & Audiology Arkansas Title Insurance Agents' Licensing Board Arkansas Towing and Recovery Board , , , Veterinary Medical Examining Board , Grand Total $12,953, Source of Information: Positions and expenditures data provided by the Department of Finance and Administration for agencies selected by the Bureau of Legislative Research. Schedule 6 COSTS PROFESSIONAL LICENSING AGENCIES IN OTHER STATES STATE UTAH Division of Occupational and Professional Licensing MISSOURI Division of Professional Registration SOUTH CAROLINA Division of Professional and Occupational Licensing FY05 POSITIONS FY05 EXPENDITURES FUNDING SOURCES 99 $6,773,120 Dedicated license fees FTE * $11,750,617 License fees - no state general funds 165 FTE $9,616,686 No state general funds *Some of these positions are still associated with particular agencies. Source of information: State Budget Offices 23
26 STATES WITH CENTRAL ADMINSTRATIVE HEARING PANELS Schedule 7 ALABAMA CALIFORNIA COLORADO FLORIDA GEORGIA IOWA LOUISIANA MARYLAND MASSACHUSETTS MICHIGAN MISSOURI NEW JERSEY NORTH CAROLINA NORTH DAKOTA OREGON SOUTH CAROLINA TEXAS WASHINGTON Administrative Hearings Division within the Office of the Attorney General Office of Administrative Hearings of the Department of General Services Office of Administrative Courts within the Department of Personnel and Administration Division of Administrative Hearings within the Department of Management Services Office of State Administrative Hearings Division of Administrative Hearings- Iowa Department of Inspections and Appeals Division of Administrative Law (Independent state agency - professional and occupational boards appear to be exempt) Office of Administrative Hearings Division of Administrative Law Appeals within the Executive Office of Administration and Finance State Office of Administrative Hearings and Rules within the Department of Labor and Economic Growth Missouri Administrative Hearing Commissions in Office of Administration New Jersey Office of Administrative Law (state agency) Office of Administrative Hearings Office of Administrative Hearings Office of Administrative Hearings within the Employment Department (also hears cases from licensing boards) Administrative Law Court State Office of Administrative Hearings Office of Administrative Hearings 24
27 APPENDIX SUMMARY OF STAFF PROCEDURES o Determine whether agency objectives and services are consistent with authorizing legislation. o Assess the need and results of agency services based upon statistical information and other available information and compare to selected other states. o Summarize key points and supporting information to support conclusions regarding efficiency and identify areas of significant concerns. o Research the structure and programs of similar agencies in other states. 25
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