ALC-Occupational Licensing Review Subcommittee

Thanks everyone for coming what we're going to be up for review today is going to be from that cosmetology the Arkansas department of health if you'll come down to the table please and introduce yourself for the record and you'll be able to start your presentation. Charles Thompson attorney Arkansas department of health. Matt Gilmore partner. Thank on German for coming you're recognized to make a presentation to us. Thank you madam chair this is the I've come before you all three sessions and during committees many times is the only time of the only thing on the agenda so this is this is a lot of this is new what you have before you is our response to for the for the committees review occupational licensing as it relates to cosmetology and it's component licenses cosmetology has been regulate in Arkansas for many many many many many years I believe in the starting in the sixties I think it's for statute regarding it might even be sooner than that it might have been in the fifties it came under the Arkansas department of health around two thousand ten and as you'll note in our responses and the responses to the questions that that at the time it came under the Arkansas department health the independent cosmetology licensing board was insolvent they have passed so that raise their fees at that time just before they came on with us and to fix that situation you'll notice and your materials that you know we have in the financials we have a fund balance that was a result of those fee increases and when we realized after a couple years ago that was in and that the continuing fund balance increase was an anomaly reduced fees. That in quite take care of the situation so reduced fees again and now we've got to the point where we are where we are about even we are looking at other ways to a fever I mean spend down plan on that reserve including fee waiver for at least one cycle maybe more as well as ongoing educational programs as you all may know we under ACT nine hundred of this last legislative session cosmetics and permit cosmetics and body are came up under the cosmetology section for the purposes of oversight specifically to have a there boards that have a board before that oversaw the so they be at now now members of the cosmetology technical advisory committee so as part of our review of of our programs we have not instituted quite yet at the spend down program because we don't know where we're gonna sit financially quite yet because it hasn't even been a full fiscal year of since we received the other programs we have individuals our inspectors are are cross trained to deal with both programs would find efficiencies where we are where we can we in fact have an online registration system that's about to go on that's about to start real soon there was really excited about and that everybody really likes so um. So anyway needless to say we are still looking at still looking at our spend down plan for that reserve we have approximately fifty thousand licensees in the cosmetology cosmetology goal arts that includes the licensee's include practitioners students because they get issued a permit when they start school and that the the lesser included what we call it what I call the lesser included licenses the aesthetician to the manicurist they don't receive as much education they get a limited scope license essentially but it all falls under cosmetology I think that's about all I have is a background I'd be happy I'd be happy to take any questions from committee members about the about our report or about anything else regarding cosmetology okay I I have a question how much do you have in your fund balance because I couldn't find that I believe it's approximately five million five million. And you were talking about that they had been and saw that before why were they installed it what was their issue I. Madam chair I I don't have the I was not with the Department at the time so I don't have the I. P. happy to get the background history on that I do know that they were a standalone Board not on the Department health they had their own staff they were all completely autonomous so I don't know the ins and outs of why they were installed in at that time I do know that they did raise their fees just prior to them coming over eighty age. One thing and I'm sure other members receive this also that we received in the mail Act letting us know that of the State says touches since around this we have the highest except for Missouri the fees for cosmetology is that an with the fund balance of five million is there an opportunity that we might be able to reduce those fees and get him back to the to the people that still keep that's all that that that is part of our our spend down analysis yes ma'am chair of the we have reduced fees twice since they came out ready H. so it really is it's been real it's been trying to project things out you know takes takes a year couple years so that is part of this that is part in Allison's and spend out we most recent or most recent role of vision we came there we did reduce fees and we still continue to look at that as well as a fee waiver fee waivers for everyone for a cycle that is part of the analysis okay and just yes service manual more home a couple of the bills that passed last session there is one that will require a fee waiver for low income individuals so that's gonna be a hit to the bill balance as well so but we are watching it closely and just how much of your actual revenue comes from fees and how much comes and finds. I don't have the I believe I believe that if the fines are significantly less I don't have that I don't have those numbers with me I was not just get on the staff I'd be happy to be happy to appreciate that Senator Ingram. Thank reference of did I understand you now you've cut fees enough that it's balancing basically what you're expending is what your income is now you've got it to that point that is correct senator tort thank you. I don't have any other questions. I see none I appreciate you all coming if you just get that information to the staff and we'll put it out to the rest of the committee absolutely manager thank you members thank you all. With that we have no other business I will let you know that the next meeting is not going to be in July we're not going to meet in July will be August eighteen. And just as a reminder coming up in September we're going to start looking at recommendations that we want to look at for final report that'll be due I think December so be thinking about everything that we discussed and where you might want to make some changes and with that we're turned.