COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4262-01
Bill No.: HB 1700
Subject: Accountants; Economic Development Dept.; Licenses - Professional
Type: Original
Date: February 6, 2008
Bill Summary: Amends laws relating to the licensure of certified public accountants.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUND |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
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|
|
|
|
|
|
|
Total Estimated Net Effect on General Revenue Fund |
$0 |
$0 |
$0 |
ESTIMATED NET EFFECT ON OTHER STATE FUNDS |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
Board of Accountancy |
($41,205) |
($41,205) |
($41,205) |
|
|
|
|
Total Estimated Net Effect on Other State Funds |
($41,205) |
($41,205) |
($41,205) |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
ESTIMATED NET EFFECT ON FEDERAL FUNDS |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
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|
|
|
|
|
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Total Estimated Net Effect on All Federal Funds |
$0 |
$0 |
$0 |
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE) |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
|
|
|
|
|
|
|
|
Total Estimated Net Effect on FTE |
0 |
0 |
0 |
☐ 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).
ESTIMATED NET EFFECT ON LOCAL FUNDS |
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FUND AFFECTED |
FY 2009 |
FY 2010 |
FY 2011 |
Local Government |
$0 |
$0 |
$0 |
FISCAL ANALYSIS
ASSUMPTION
Officials from the Office of Secretary of State (SOS) state the fiscal impact for this proposal for Administrative Rules 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 Institutions and Professional Registration (DIFP) - Division of Professional Registration (DPR) state the proposal allows out-of-state licensed Certified Public Accountants (CPAs) to have all the privileges of licensure in this state. The DPR anticipates the proposal will result in a decrease in the number of new applicants for licensure. The DPR estimates a decrease of approximately 491 applications annually, with a resulting decrease of $41,205 in annual revenue going to the Board of Accountancy Fund.
This proposal will result in a decrease in total state revenue.
FISCAL IMPACT - State Government |
FY 2009 (10 Mo.) |
FY 2010 |
FY 2011 |
BOARD OF ACCOUNTANCY FUND |
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|
|
|
|
|
|
Loss - DIFP |
|
|
|
Reduction in licensing revenue |
($41,205) |
($41,205) |
($41,205) |
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|
|
|
ESTIMATED NET EFFECT ON BOARD OF ACCOUNTANCY FUND |
($41,205) |
($41,205) |
($41,205) |
FISCAL IMPACT - Local Government |
FY 2009 (10 Mo.) |
FY 2010 |
FY 2011 |
|
|
|
|
|
$0 |
$0 |
$0 |
FISCAL IMPACT - Small Business
The proposal may impact small business accounting firms if more out-of-state CPA's decide to practice in Missouri.
FISCAL DESCRIPTION
This proposal changes the laws regarding the licensure of certified public accountants. Certified public accountants who live out of state may qualify for a Missouri license if the state in which
they hold their license has equivalent qualifications. Applicants must have an unrestricted license in their state and can only practice with a firm holding a valid state permit to
practice certified public accountancy.
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
Department of Insurance, Financial Institutions and Professional Registration
Office of Secretary of State
Mickey Wilson, CPA
Director
February 6, 2008