KRS 324B.040: Independent board or commission to use services of Department of

Professional Licensing -- Exemptions -- Report.

(1) As used in this section, "independent board or commission" means an

executive branch agency created by statute that serves the primary purpose of

licensing, certifying, registering, or otherwise regulating any occupational or

professional category. "Independent board or commission" does not include:

(a) An executive branch board or commission that is a part of another

executive branch agency;

(b) Any board or commission that is under the authority or jurisdiction of the

General Assembly or the judicial branch; or

(c) Any board or commission within any branch of state government if that

board or commission is expressly designed to:

1. Study, report, or make recommendations regarding a particular

issue; or

2. Expire within a time certain.

(2) Any independent board or commission that is created after July 15, 2010, shall

use the administrative services of the Department of Professional Licensing as

described under KRS 324B.030 unless that board or commission can

reasonably demonstrate to the satisfaction of the department that it will license,

certify, register, or otherwise regulate at least one hundred (100) persons. If the

board or commission is able to initially demonstrate that it will reach the

threshold established in this subsection and then fails to license, certify,

register, or otherwise regulate at least one hundred (100) persons at the end of

any two (2) consecutive fiscal years, that board or commission shall be subject

to the process required in subsection (4) of this section.

(3) Any independent board or commission that was created before July 15, 2010,

shall undergo the process required in subsection (4) of this section if that board

or commission licenses, certifies, registers, or otherwise regulates less than

one hundred (100) persons at the end of any two (2) consecutive fiscal years

ending on or after June 30, 2010.

(4) (a) If an independent board or commission fails to regulate one hundred

(100) or more persons for two (2) consecutive fiscal years as described in

subsections (2) and (3) of this section, that board or commission shall

submit a report within ninety (90) days after the close of the second of the

two (2) fiscal years to the Department of Professional Licensing and to the

Interim Joint Committee on Licensing and Occupations of the Legislative

Research Commission or to the corresponding standing committees of

the General Assembly. The report shall contain, at a minimum:

1. The number of persons licensed, certified, registered, or otherwise

regulated by the board or commission at the close of each of the two

(2) fiscal years;

2. A detailed accounting of the revenues, fees collected, board or

commission member reimbursements or per diems, staff salaries,

costs, expenses, and other financial activities of the board or

commission for each of the two (2) fiscal years; and

3. The board or commission's plan to:

a. Increase the number of persons it licenses, certifies, registers,

or otherwise regulates to one hundred (100) or more persons;

b. Merge with one (1) or more other boards, commissions, or

other governmental entities, which will result in a merged entity

that will license, certify, register, or otherwise regulate one

hundred (100) or more persons; or

c. Allow the Department of Professional Licensing to assume

administrative duties for the board or commission as described

in KRS 324B.030.

(b) If, after implementation of its plan under paragraph (a)3.a. or b. of this

subsection, an independent board or commission fails to license, certify,

register, or otherwise regulate one hundred (100) or more persons for an

additional three (3) consecutive fiscal years, for a total of five (5)

consecutive fiscal years, that board or commission shall allow the

Department of Professional Licensing to assume administrative duties for

the board or commission as described in KRS 324B.030 within ninety (90)

days after the end of the fifth fiscal year.

Effective Date: April 11, 2017