Regulatory fee measure goes to Senate

FRANKFORT, Ky. (WTVQ) —A bill that would allow many of the fees collected by the Cabinet for Health and Family Services to be set by the Cabinet—and not the General Assembly—has narrowly been approved by the state House.

House Bill 327, sponsored by Rep. Russell Webber, R-Shepherdsville, passed the House 46-40.

Should it become law, regulatory fees for services ranging from assisted living facilities and child care facilities to restaurants and hotels would be removed from state law and set by state regulation, with some prescribed limits.

Only Kentucky birth certificate fees collected by the Cabinet would remain in state law, according to the bill.  

Webber said the bill will let the Cabinet keep up with costs that current statutory fees don’t cover.

“What’s happening now is the Cabinet, to cover those fees, is having to go and use General Fund dollars because those amounts are no longer sufficient,” he said.

Eighty percent of state fees are already set by administrative regulation, Webber added.  

Rep. Jim Wayne, D-Louisville, was one House member who voted against the bill. Wayne said HB 327 would give non-elected state officials authority that should remain with elected state officials.

“We will be abdicating our authority to bureaucrats to set fees, to basically tax our citizens here,” said Wayne. “So I strongly suggest that we reject this legislation and we keep our power as representatives of the people to set the taxes in the Commonwealth.”

Among those supporting the bill was Rep. Jim Gooch, R-Providence, who said the legislation will ensure the regulatory fees go to their intended purpose.

“These fees are established so the (Cabinet) can regulate their departments,” said Gooch.

HB 327 now goes to the Senate for its consideration.

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Media Release from the Legislative Research Commission