Audit: Opticians Board Needs Major Changes | Eastern North Carolina Now

    Publisher's note: The author of this post is Barry Smith, who is an associate editor for the Carolina Journal, John Hood Publisher.

Licensing board running out of money; JLF suggests abolition

    RALEIGH — A new audit says that the State Board of Opticians is in financial straits and won't have enough money to continue operating without changes.

    "The board should confer with the General Assembly to evaluate options for continuing services," says the report from State Auditor Beth Wood's office. "Options include increasing fees or consolidating operations with another licensing board to save money."

    Meantime, the John Locke Foundation's head of regulatory studies questions the necessity of continuing to require a state-issued license to practice optometry.

    The report notes that the board had revenues of $160,450 for the period from Feb. 1, 2013 - Jan. 31, 2014. Its expenses for that period were $252,207. The previous five years showed the board with operating losses of between $49,368 to $62,047 annually. It used reserves in its checking account to make ends meet. The reserves are nearly depleted.

    While the licensing board agreed with Wood's recommendation that it seek permission to increase fees, it took issue with the option of merging with another licensing board.

    "We do not believe any cost reduction could be accomplished through economies of scale for this situation because our board is unique wherein many operating costs are fixed, and even variable costs would not likely decrease inside a new board," said Sue Hodgin, board director, in a letter written in response to the audit. "Further, the Board of Opticians has special examination procedures which are tailor-made and cannot be accomplished through uniform testing modules. Such procedures require the expertise of existing staff and board members familiar with the field of opticianry."

    The audit, however, said that combining functions with another licensing board could save overhead and administrative costs. The report noted that the board spends $20,736 in rent and $44,415 for legal and administrative services, excluding the board director's salary.

    It also noted that the board director's position is part time. Combining with another licensing board would at least allow the phone to be answered, the report says.

    Jon Sanders, director of regulatory studies at the John Locke Foundation, offered another option: allowing the board to dissolve.

    "North Carolina is one of only 23 states that requires opticians to obtain state licensure," Sanders said. "That mean that over half the states in the country have not burdened themselves with state licensing of opticians."

    Sanders called occupational licensing an "impediment to economic growth," saying that economists studying licensure liken it to "the medieval guild system, where established service providers use the hurdles of time and money to limit competitors. They are subsequently able to recover higher earnings, but that means consumers face higher costs and would-be entrants are discouraged from getting into the regulated market here."

    He said that North Carolina is one of the more aggressive states when it comes to occupational licensing. For example, crossing the border into South Carolina cuts the number of licensed job categories by more than two-thirds.

    "I have recommended cutting and consolidating licensing boards here to help de-guild North Carolina's economy," Sanders said. "If the majority of states can get by without the licensing of opticians, North Carolina could, too."

    Sanders said that merger with the State Board of Examiners in Optometry would be another option. "Raising fees would be heading in the wrong direction," he said.

    The opticians board licenses and oversees 1,106 licensed opticians who make eyeglasses and lenses in the state. Would-be opticians pay $200 to take the board's exam, $50 for their initial license, and $100 for renewal licenses.

    The board assesses other fees:

• $200 to license a practitioner from another state to practice in North Carolina.
• $50 to register an optical place of business.
• $25 for an opticianry apprentice or intern to apply for a license or renew an expiring one.
• $25 to register a training establishment.
• $10 to verify a license.