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TDLR
To Lower 29 License Fees
8/16/2004
The
cost of doing business in Texas just dropped - at least for many
of the people engaged in occupations licensed by the Texas Department
of Licensing and Regulation (TDLR).
The
Texas Commission of Licensing and Regulation, TDLR's governing body,
has voted unanimously to reduce 29 licensing and registration fees
in 12 of TDLR's 22 programs. Fee reductions range from 10 percent
to as high as 75 percent.
"We
perform an annual review to
ensure that the licensing fees we charge cover only the cost of
operating each of our programs," said William Kuntz, TDLR's
executive director. "As our license base grows, the efficiency
of our agency structure becomes more pronounced. Our efficiency
is good news for our licensees."
Because
of the way TDLRis
structured, the addition of programs to the existing license base
results in lower per license costs. The 78th Texas Legislature added
three new programs to the agency's portfolio last year.
When
the Texas Legislature created TDLR in 1989, it was envisioned as
an "umbrella" licensing agency capable of regulating a
wide variety of occupations. This structure promotes efficiency
by allowing the costs of administration - such as executive management,
human resources, legal services, information services and accounting
- to be spread across many licensing programs. As the number of
programs is increased, or the licensee population grows, the processing
cost per license actually drops as the administrative costs are
apportioned to a larger population base.
"This
doesn't surprise me. This level of performance is exactly what the
legislature expected when we gave those additional responsibilities
to TDLR," said Texas Sen. Tommy Williams of The Woodlands,
who is a member of the Senate Finance Committee. "TDLR has
earned its reputation for efficiency. They provide a model for what
successful consolidation should look like."
Other
states also have umbrella licensing agencies, but not like TDLR.
In other states, an umbrella agency might consist of a collection
of licensing clusters, each responsible for the entirety of a single
regulatory program. One group of employees processes and issues
a single type of license and also tracks compliance and prosecutes
enforcement cases.
TDLR,
however, is structured along functional lines. So, at TDLR, the
licensing division processes applications and issues licenses for
all of the agency's 22 programs. TDLR's philosophy is that program
experts belong in the compliance division, which tracks adherence
to the law and the rules for all license types. The enforcement
division prosecutes all violators. Aligning along functional lines
eliminates redundancies among programs and allows even greater efficiencies.
"The
same basic functions are required regardless of the type of license,"
Kuntz said. "So it only makes sense to us to have the same
people issuing all licenses rather than setting up a system of specialists
for each type of license. This also gives us more
flexibility to handle the regular ebbs and flows of the licensing
business."
Examples
of the fee reductions include: air conditioning contractors, reduced
from $125 annually to $80, a 36 percent reduction; journeyman electrician,
$50 annually to $40, a 20 percent reduction; staff leasing services
companies with less than 250 assigned employees, $1,000 annually
to $250, a 75 percent reduction; licensed court interpreters, $175
annually to $75, a 57 percent reduction. To see a complete list
of TDLR licensing fees that will be reduced, visit the TDLR website
at http://www.license.state.tx.us/feereductions.htm.
Before
the lower fees can become effective, TDLR's rules will have to be
adjusted. Adjustment of rules involving 12 programs will take some
time, but TDLR staff will begin modifying the rules immediately
and all rule changes should be completed by the end of the year.
To
receive news and updates on any of the programs TDLR administers,
sign up for TDLR's email subscription service at:
http://www.license.state.tx.us/newsletters/TDLRnotificationLists.asp
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