COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         2034-06

Bill No.:          SCS for HCS for HB 780

Subject:           Boards, Commissions, Committees, Councils; Cemeteries; Licenses - Professional; Pharmacy

Type:              Original

Date:               April 13, 2007

Bill Summary:            Modifies various provisions relating to professional licensing.

FISCAL SUMMARY

* Transfers between funds and increase in fees nets to $0.

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 6 pages.

☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

FISCAL ANALYSIS

ASSUMPTION

Officials from the Office of State Courts Administrator, Department of Revenue, and Department of Health and Senior Services assume the proposal will have no fiscal impact on their organizations.

Officials from the Office of Administration - Administrative Hearing Commission anticipate this legislation will not significantly alter its caseload. However, if other similar bills also pass, there are more cases, or more complex cases, there could be a fiscal impact.

Officials from the Office of Secretary of State (SOS) state the fiscal impact for this proposal is less than $2,500. The SOS does not expect that additional funding would be required to meet these costs. However, the SOS also recognizes that many such bills may be passed by the General Assembly in a given year and that collectively the costs may be in excess of what the SOS can sustain within its core budget. Therefore, the SOS reserves the right to request funding for the costs of supporting administrative rules requirements should the need arise based on a review of the finally approved bills signed by the Governor.

Officials from the Department of Insurance, Financial and Professional Regulation (DIFP) state based on FY 07 board projections, the division estimates 18 endorsement applications ($150 each) will no longer be received by the Board of Hearing Instrument Specialists, thereby, decreasing their funds by $2,700 annually. The Board estimates 230 audiologists will not be required to renew their hearing instrument specialist license ($250 each), thereby, decreasing revenue into the Hearing Instrument Specialist Fund by $57,500. Based on the language of the proposal as written, the Board of Registration for the Healing Arts would be required to supplement the Hearing Instrument Specialist fund by these amounts, up to $61,000. The Board of Registration for the Healing Arts will increase audiology licensing fees to recoup the cost of the supplement required by this legislation. This will result in a zero net affect on the funds involved.

The DIFP assumes no fiscal impact as a result of the remaining sections of the proposal.

Based on discussions with DIFP staff, Oversight assumes approximately 75 real estate appraiser licensees may opt for an inactive license. Since the board has the authority to set inactive license fees, Oversight is ranging the decrease in license fee revenue from $15,000 to $30,000 [($200 inactive license fee (half of the current $400 fee) to a $0 license fee] for FY 09 as licenses are biennial.

ASSUMPTION (continued)

Officials from the Office of Attorney General (AGO) did not respond to our request for a statement of fiscal impact. However, in response to an earlier version of this proposal, the AGO assumed any potential costs arising from the proposal could be absorbed with existing resources.

FISCAL IMPACT - Small Business

The proposal may impact small businesses in any of the fields included in this proposal.

FISCAL DESCRIPTION

This proposal modifies the requirements for the licensing of real estate appraisers.

The proposal allows the licensee two years instead of one to renew an expired license. Inactive licenses are authorized.

This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

SOURCES OF INFORMATION

Office of Administration -

            Administrative Hearing Commission

Office of State Courts Administrator

Department of Insurance, Financial and Professional Regulation

Department of Health and Senior Services

Department of Revenue

Office of Secretary of State

NOT RESPONDING: Office of Attorney General

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                April 13, 2007