SENATE BILL REPORT

SHB 449

BYHouse Committee on State Government (originally sponsored by Representatives H. Sommers and B. Williams; by request of  Governor Gardner)

Consolidating administrative functions of the board of accountancy and the board of pharmacy.

House Committe on State Government

Senate Committee on Governmental Operations

Senate Hearing Date(s):March 31, 1986; April 2, 1987

Majority Report:  Do pass.

      Signed by Senators Halsan, Chairman; Garrett, Vice Chairman; DeJarnatt, Talmadge.

Minority Report:  Do not pass.

      Signed by Senator Zimmerman.

Senate Staff:Barbara Howard (786-7410); Eugene Green (786-7405)

                  April 2, 1987

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, APRIL 2, 1987

BACKGROUND:

The Department of Licensing (DOL) is responsible for regulating, through licensing and disciplinary activities, more than 100 businesses and professions.

Depending upon the specific occupation or profession being regulated, the responsibility ranges from policy setting, licensing activities, and disciplinary actions.  One common "division of labor" between a board and DOL is to require that the board establish policy, set standards for practice and examinations, and hold disciplinary hearings, while DOL is responsible for the general administration of all regulatory activities.  This includes managing the budget and staff necessary to carry out the board's policies, administering exams, conducting investigations, issuing licenses in accordance with board policy, investigating complaints, and bringing disciplinary actions before the board.

Three professional and occupational boards still exist as independent agencies.  They are the Washington Board of Accountancy, the State Board of Pharmacy and the Cemetery Board.

Board of Accountancy.  The Board of Accountancy, established in 1949, consists of five members appointed by the Governor who serve three-year terms.  The Board employs six staff persons, two of whom are exempt from civil service.  The Board regulates the practice of public accounting in the state by establishing entrance standards for professional accountants, setting technical and ethical standards of accounting practice, and enforcing state law and policies.

As one of its primary functions, the Board approves and administers an examination required to issue the certificate for a "certified public accountant".  The Board also issues registrations for partnerships and corporations, as well as biennial permits to practice public accounting.  Fees required for examinations, registration and permits are established by the Board.

The Board also has substantial disciplinary and enforcement authority.  It may revoke or suspend certificates and it may revoke, suspend or refuse to renew registrations and permits.

Board of Pharmacy.  The Board of Pharmacy, established in 1889, consists of seven members appointed by the Governor who serve four-year staggered terms.  The Board regulates the practice of pharmacy and enforces state law and policies in the field.  The Board employs 17 staff persons, two of whom are exempt from civil service.

The Board develops and administers examinations of applicants for pharmacists' licenses.  It also regulates and licenses manufacturers of drugs and wholesalers, pharmacies, shopkeepers, itinerant vendors, and peddlers who sell drugs.  The Board establishes fees for all examinations and licenses that it issues or renews.

The Pharmacy Board has substantial disciplinary authority.  It may inspect and investigate establishments that manufacture or sell drugs and may prosecute individuals or establishments for civil and criminal violations.  The Board may hold hearings and may refuse, revoke or suspend licenses.

SUMMARY:

Transfer of Administrative Duties, Related Documents and Personnel.  All administrative powers, duties, and functions of the Boards of Accountancy and Pharmacy relating to:  (1) the examination of applicants; (2) the issuance of licenses, certificates, permits and registrations; and (3) the discipline of practitioners are transferred to the Department of Licensing (DOL).  Similarly, all personnel, documents, equipment, appropriations, funds and other tangible property of each board which are associated with administrative activities are transferred to the Department of Licensing.  If questions arise regarding the transfers, the director of Financial Management is to determine the proper allocation.

Each board retains its policy-making, disciplinary and enforcement responsibilities.  Each board also retains the authority to set standards for entrance into the profession and adopt regulations regarding conduct within the profession.  Similarly, each board retains its authority to make disciplinary and enforcement determinations and take appropriate action.

DOL provides staff to the boards instead of each board independently employing its own staff.  In addition, the Department sets all fees and charges, administers exams, issues licenses, certificates and permits as appropriate, and conducts investigations and inspections.  The Board of Pharmacy designates the law enforcement personnel for conducting investigations.  The Board of Accountancy recommends candidates for appointment of an executive secretary to the Director.

Requirements for continuing professional education for accountants holding a certificate are eliminated.  A person may use the title certified public accountant if he or she has been issued a certificate but may not practice without the appropriate license.

Classified employees who are transferred are to continue performing their duties as employees of DOL without loss of employment rights.  The transfers may not affect collective bargaining units or agreements until such units are modified by the State Personnel Board or until such agreements expire.  All rules, pending business, contracts and obligations pertaining to the transferred activities are to be carried out by the Department.

Fiscal Note:      available

Senate Committee - Testified: Fed Hellberg, Office of the Governor; Don Williams, Doug Beeman, Pharmacy Board; Lars Hennum, Pharmacists of Washington; Geoff Gibbs, Washington Association of Certified Public Accountants; Teresa Aragon, Director, Department of Licensing