This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0279 - Licensing of Architects, Professional Engineers and Professional Land Surveyors

L.R. NO.  1099-01
BILL NO.  SB 279
SUBJECT:  Licenses Professional: Architects
TYPE:     Original
DATE:     February 3, 1997



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1998             FY 1999           FY 2000
State Board for
Architects,
Professional
Engineers and Land
Surveyors                  Unknown             Unknown           Unknown

Total Estimated
Net Effect on All
State Funds*               Unknown             Unknown           Unknown
*Unknown income derived from fines


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED              FY 1998             FY 1999           FY 2000
None

Total Estimated
Net Effect on All
Federal Funds                   $0                  $0                $0


                    ESTIMATED NET EFFECT ON LOCAL FUNDS


FUND AFFECTED              FY 1998             FY 1999           FY 2000
Local Government                $0                  $0                $0

                              FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Natural Resources (DNR) assume the proposal
would ultimately affect DNR's costs through the increased salaries for
licensed architects, professional engineers, and professional land surveyors,
as well as contract services performed by these professionals.  The
educational and work experience requirements would increase for the
architects and land surveyors.  They would be required to have a bachelors
degree to become licensed.  The work experience for land surveyors would
increase to four years and architects would be required to complete an intern
development program.  Since the licensure requirements for these professions
would be more stringent, there would be fewer, the market demand would
increase, and as a result, their salaries would increase as well.  However,
the actual cost impact is unknown.  Since these professionals would be more
marketable and perhaps more difficult to recruit and retain, DNR would need
to increase its recruitment and retention efforts related to these types of
individuals.  The average recruiting, hiring, and training costs for a merit
position is approximately $3,000.  Additionally, the proposed legislation
states that the Board could establish continuing education requirements for
these professionals, which would result in additional costs for DNR related
to these training requirements.

Oversight agrees that agencies which employ engineers, architects and land
surveyors could incur increased salaries and contract costs as an indirect
result of this proposal.  Decisions to increase salary ranges or provide
additional training would become budgetary matters. Oversight has not
included such costs in the fiscal impact specifications below.

Officials from the Department of Economic Development (DED) - Professional
Registration (DPR) assume the proposal would result in an increase to total
state revenues in that it allows the Board of Architects, Professional
Engineers and Land Surveyors to assess civil fines and costs against any
person or entity for a violation of the statutes, rules and regulations or
orders enforceable by the Board in an amount not to exceed $5,000 for the
first violation, $10,000 for the second violation and $15,000 for the third
violation and for each subsequent violation.  All fines would be remitted to
the State Treasurer and credited to the State Board for Architects,
Professional Engineers and Land Surveyors Fund.  The Board does not currently
have an estimate of how many complaints would lead to civil fines, therefore,
the actual increase to total state revenue is unknown at this time.

Officials from the Missouri Department of Transportation (DHT) and the Office
of Administration-Design and Construction (COA) assume the proposal would
have no fiscal impact on their agencies.


FISCAL IMPACT - State Government          FY 1998   FY 1999   FY 2000
                                         (10 Mo.)
STATE BOARD FOR ARCHITECTS,
PROFESSIONAL ENGINEERS AND
LAND SURVEYORS FUND

Income-Division of Professional Registration (DPR)
  Civil fines for violations              Unknown   Unknown   Unknown

ESTIMATED NET EFFECT TO
STATE BOARD FOR ARCHITECTS,               Unknown   Unknown   Unknown
PROFESSIONAL ENGINEERS AND
LAND SURVEYORS FUND


FISCAL IMPACT  - Local Government         FY 1998   FY 1999   FY 2000

                                               $0        $0        $0
FISCAL IMPACT - Small Business

Small businesses could have a fiscal impact due to new licensing requirements
for certain professionals.


DESCRIPTION

The proposed legislation would make numerous changes to the licensing and
administration provisions relating to architects, professional engineers and
professional land surveyors in the areas of education, training, and
experience expectations.

Professional engineers, professional land surveyors and architects would have
a personal seal in a form prescribed by the Board and this seal would be the
legal equivalent of the licensee's signature.  The owner of the seal would be
responsible for the architectural, engineering or surveying documents when
the seal is placed on any of these documents.


The proposal would give authority to the Board to assess civil fines against
any person or entity for a violation of the statutes, rules and regulations
or orders enforceable by the Board.

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

This legislation could affect Total State Revenue.


SOURCES OF INFORMATION
Department of Natural Resources
Department of Economic Development-Professional Registration
Missouri Department of Transportation
Office of Administration-Design and Construction