Division proposes lab testing fees be hiked
Pub Date: 1/1/2003
Huntington said auditors had been nagging the division to more closely align department costs with service fees, specifically the testing lab. He said the lab costs outstrip its fee income by about $30,000 and that hiking the test fee from $75 to $105 would erase that department's accounting deficit. Currently, other division income subsidizes the lab.
Tooke wondered if increased fees and income would improve lab performance, but was told it would not.
Councilwoman Pam Kennedy, Kalispell mayor, adamantly stated that if equipment manufacturers were looking for service improvements, the fee would need to be higher than that proposed.
"This (proposed $105 fee) just brings the fee in line with the costs," she said. "To speed up the process may require a bigger increase."
Huntington said when more income has been required, the division has typically procured it through increased machine permit fees. He said he thought it would be more equitable for lab users to pay a higher fee to cover the lab deficit, rather than raising machine permit fees.
Tooke also raised the question of the division lab "farming out" work overloads to a proposed new private lab that was authorized by the 2005 Legislature.
Councilman Kevin Howlett, the Native American representative to the council, objected to the division requesting higher fees without providing any accounting to demonstrate current costs, income and deficits. "What do we get for $75 and what will we get for $105? We need specifics," he said.
"I'm not opposed to more resources for the division," he continued. "But It's important that fee increases be justified. Tell us what we'll be getting, specifically."
Carson said he was aware a sizeable wave of technological innovations were coming and that the lab would need more resources to deal with it. "I'm concerned about time-of-submission to time-of-approval. There is a huge learning curve. The lab needs to start gearing up ahead of the curve.
"There is a whole cycle of web-based technology coming'; intelligent communication."
Ben Kamerzel, head of the division's technical services bureau, said turnaround time for submissions varies, depending upon how complete the submission is. "If It's new technology, it takes longer. A complete submission will take 60 to 90 days," he said. "Some simple modifications can take less than 10. New software is what takes time."
Carson made a motion the council advocate boosting the fee to $105, and that the division provide an explicit accounting of lab income and costs and the effect of the $30 increase, which was said would raise $30,000 annually.
Kennedy moved to table the item until Gambling Control provided accounting specifics. The motion failed.
At that point council chairman Rep. John Witt called for a break. Upon reconvening, Carson pointed out that testing procedures themselves are billed by the hour to manufacturers, so improved turnaround could be paid for in that way."
A vote on Carson's motion passed with Howlett dissenting.
Source: The Montana Tavern Times, Oct. 2005, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.