SENATE BILL REPORT
SB 5367
BYSenators Halsan and Bottiger;by request of Office of the Governor
Consolidating administrative functions of the board of accountancy and the board of pharmacy.
Senate Committee on Governmental Operations
Senate Hearing Date(s):February 9, 1987; March 4, 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:Walt Corneille (786-7452); Barbara Howard (786-7410) March 5, 1987
AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, MARCH 4, 1987
BACKGROUND:
Department of Licensing. The Department of Licensing (DOL) is a regulatory agency responsible for licensing drivers, registering vehicles and regulating, through licensing and disciplinary activities, different business and professional groups.
The regulation of professions and occupations is carried out by the Department's Business and Professions Administration, the director of which serves as an assistant director of the Department.
Depending upon the specific occupation or profession, the Department's regulatory activities can be entirely the responsibility of the Department of Licensing or can be shared, to varying degrees, by advisory boards, examining boards, or the various occupational and/or professional governing boards established by statute. While the substantive authority of the many statutory boards varies considerably, 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 the DOL would be responsible for the general administration of all regulatory activities.
There are numerous boards created under Title 18 RCW which share responsibilities with the DOL, including the State Board of Registration for Architects, the Washington State Podiatry Board, the Board of Dental Examiners, and the State Board of Registration for Landscape Architects.
Most occupational and professional boards function within state agencies for administrative purposes, three 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 regulates the practice of public accounting in the State of Washington by setting entrance standards for professional accountants, establishing technical and ethical standards of accounting practice, and enforcing the Board's policies and state law.
The Board employs its own staff and approves and administers an examination required to issue a certificate of "certified public accountant". The Board also issues registrations for partnerships and corporations, and biennial permits to practice public accounting. Fees required for examinations, registration and permits are established by the Board.
The Board has disciplinary and enforcement authority to: (1) revoke or suspend certificates and (2) revoke, suspend or refuse to renew registrations and permits.
Board of Pharmacy. The Board regulates the practice of pharmacy and administers and enforces its policies and state law.
The Board develops and administers examinations of applicants for pharmacists' licenses. It regulates and licenses manufacturers of drugs and wholesalers, pharmacies, shopkeepers, itinerant vendors, and peddlers who sell drugs. The Board establishes fees, and renewal fees where appropriate, for all examinations and licenses that it issues.
The Pharmacy Board may inspect and investigate establishments that manufacture or sell drugs and may prosecute individuals or establishments in court. The Board may hold hearings and it may refuse, revoke or suspend licenses which it is authorized to issue.
SUMMARY:
Transfer of Administrative Duties and Related Documents and Personnel. All administrative powers, duties, and functions of the Accountancy and Pharmacy Boards 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). The DOL employs an executive of each board in consultation with the respective boards. The DOL employs staff, inspectors and investigators deemed necessary. At the direction of the Board, the DOL makes inspections and investigations as well as prosecutes violators. 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.
Classified employees who are transferred are to continue performing their duties as employees of the 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 DOL.
Each Board retains: its policy-making, disciplinary and enforcement responsibilities; the authority to set standards for entrance into the profession and regulations regarding conduct within the profession; and its authority to make disciplinary and enforcement determinations and take appropriate action. The responsibility for administering each regulatory program is transferred to the DOL.
The DOL provides staff to the Boards, sets all fees and charges, administers exams, issues licenses, certificates and permits as appropriate, and conducts investigations and inspections.
Fiscal Note: requested
Senate Committee - Testified: Fred Hellberg, Governor's Office; Theresa Aragon, Dept. of Licensing; Douglas W. Beeman, Board of Pharmacy; Don Williams, Pharmacy Board; Lars Hennum, Washington Pharmacy; Ralph Scott, Chair, Board of Accountancy; Duffy Rader, CEO, Board of Accountancy; Geoff Gibbs, Washington Society of CPA's