This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0962 - Reg. Telecommunications & Information Systems Contractors
L.R. NO. 3573-01
BILL NO. SB 962
SUBJECT: Telecommunications: Licenses - Professional
TYPE: Original
DATE: March 18, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
PR Fees $21,056 $127,235 $132,962
Road Fund ($22,000) ($1,500) ($1,500)
Total Estimated
Net Effect on All
State Funds ($944) $125,735 $131,462
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
None $0 $0 $0
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the Department of Economic Development-Professional
Registration (DPR) have prepared the fiscal note response based on the
assumption that 5,000 individuals would be licensed initially, with a 3%
growth rate. If in fact there are substantially more or less than estimated,
the request to implement this legislation would reflect additional or reduced
personal service and/or expense and equipment. In addition, the licensure
and renewal fees would be adjusted accordingly. The projected revenue
reflects a $60 licensure and annual renewal fee resulting in total revenue of
$300,000 for FY 97. Since no fund is established by this proposal, it is
assumed all revenue would be deposited into the PR Fees Fund.
DPR officials assume they would need an additional 4.4 FTE to enact the
proposed legislation. They have requested one Executive Director II (1 FTE
at $34,694 per year) to serve as the senior executive officer of the Board
and to be responsible for overseeing the licensure and regulation program.
DPR has also requested one Licensure Technician I (1 FTE at $16,164 per year)
to provide clerical and technical support directly to the Executive Director
and the Board. This position would be responsible for processing
applications for licensure, as well as responding to any inquiries relating
to the licensure law or rules and regulations. Due to the number of
additional licensees, it is assumed DPR would need an additional one Clerk
Typist II (1 FTE at $15,624 per year) and one Investigator II (1 FTE at
$25,020 per year) to be added to the Division-Administration support and
investigative pools. DPR also assumes an additional .4 Clerk Typist I (.4
FTE at $14,568 per year) would be needed for the Division's Cash Receiving
Room.
The legislation does not provide for per diem or expense reimbursement for
the Board members. However, DPR has included meeting expense for the
quarterly meetings. It is also assumed there would be a one-time cost to
design, program and implement a computer licensure program for a total of
$7,440 (240 hours @ $31). Additionally, DPR has included rental costs to
accommodate the additional FTEs. However, Oversight assumes DPR would locate
new FTE in existing facilities and has not included rental costs as a result
of this proposal. Oversight has also adjusted equipment requests based on OA
guidelines.
DPR assumes the Board would develop an examination with the assistance of a
professional testing service. Based on estimates from Applied Measurement
Professionals, the average cost for developing an examination is
approximately $10,000 for each form type. This legislation establishes five
categories of licensure and it is assumed each class would have its own exam
form. In addition, it is assumed each licensure category would have more
than one form. (5 categories x 2 forms each x $10,000 per form) The
development of the exam would be a one-time expense. It is assumed the Board
would utilize a professional testing service to administer the exam, thus,
all exam fees would be paid directly to the testing service by the exam
applicant.
DPR has calculated the General Revenue transfer amount to be $40,320 per
year, based on the transfer amount for the Advisory Committee for Licensed
Clinical Social Workers, which is a Board of similar size.
Officials from the Office of Administration-Division of Data Processing and
Telecommunications (COA-DPT) assume this proposal would have no fiscal impact
on DPT. DPT assumes the cost of doing business for telecommunication or
information systems contractors would be increased, but it should be an
immaterial amount which would not be subject to estimation by state agencies.
No additional operation requirements and costs for the COA would be expected.
Officials from the Office of Secretary of State (SOS) assume the proposal
would create a body of technical standards, which would necessitate
additional printing in both the Code of State Regulations and the Missouri
Register. The dollar amount is unknown. However, Oversight assumes SOS
could increase fees to cover additional costs, per Section 536.033 RSMo, and
therefore, has not included associated costs in the fiscal impact
specifications below.
Officials from the Department of Highway and Transportation (DHT) assume the
proposal would cost the State Road Fund approximately $22,000 for FY 97 and
an additional $1,500 for FY 98 and FY 99. This is based on DHT licensing its
own staff who perform the described telecommunications and information
systems work, as well as making sure that any independent contractors it
retains for such work are licensed. The DHT Information Systems Division
employs 30 individuals who perform work related to this act. A cost of $350
per individual for the license and travel expense is assumed for a total of
$10,500 (30 x $350). In addition, a surety bond of $10,000 would be
required. DHT also assumes the cost for outside contractors would increase
10 % due to the reduced number of contractors. Since DHT spends an average
of $15,000 annually for these services, they assume an annual increase of
$1,500 ($15,000 x 10%).
Officials from the Administrative Hearing Commission (AHC) assume the
proposal would have no fiscal impact on their agency.
FISCAL IMPACT - State Government FY 1997 FY 1998 FY 1999
(10 Mo.)
PR FEES FUND
Income-Division of Professional Registration (DPR)
Licensing/Renewal Fees $300,000 $309,000 $318,300
Total Income - DPR $300,000 $309,000 $318,300
Costs-DPR
Personal Service (4.4 FTE) ($81,225)($102,256)($104,813)
Fringe Benefits (24,952) (31,413) (32,199)
Expense and Equipment (25,007) (7,776) (8,006)
One-Time Expense/Exam Development (100,000) 0 0
One-Time Expense/MIS (7,440) 0 0
Other Costs/GR Transfers (40,320) (40,320) (40,320)
Total Costs - DPR ($278,944)($181,765)($185,338)
ESTIMATED NET EFFECT TO
PR FEES FUND $21,056 $127,235 $132,962
ROAD FUND
Costs-Department of Highway and Transportation
Expense ($22,000) ($1,500) ($1,500)
ESTIMATED NET EFFECT TO
ROAD FUND ($22,000) ($1,500) ($1,500)
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
(10 Mo.)
0 0 0
DESCRIPTION
This proposal would establish within the Division of Professional
Registration the Board of Telecommunication or Information Technology Systems
Contractors.
Except for those exempted by the bill, any individual, firm, partnership, or
corporation wishing to engage in the business of designing, installing,
altering, servicing, or testing telecommunication or information technology
systems would be required to be licensed by the Board.
The bill would contain provisions describing the duties and powers of the
Board. The bill would give the Board the authority to develop applications
for examinations and licensing; establish and collect fees; give
examinations; renew licenses; issue licensing certificates; refuse to renew,
suspend and revoke licenses; cause complaints to be filed against licensees;
develop criteria for reciprocity and grandfathering those currently working
in the profession; keep appropriate and accurate records; and maintain a
roster of licensees.
No county of the first or second class or political subdivision located
within a first or second class county could enact or enforce any ordinance
which would restrict the development, installation or renovation of any
telecommunication or information technology system.
The bill would also require all qualified telecommunication contractors to
file a $10,000 surety bond with the Board before a license could be issued.
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 Economic Development-Professional Registration
Office of Administration-Division of Data Processing and Telecommunications
Department of Highway and Transportation
Office of Secretary of State
Administrative Hearing Commission