SB 0606 - Fiscal Note

Fiscal Note - SB 0606 - Provides for licensure of massage therapists

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2551-01

BILL NO. SB 606

SUBJECT: Licenses - Professional: Massage Therapists

TYPE: Original

DATE: January 19, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1998	FY 1999	FY 2000
Healing Arts	$40,599	($51,763)	($20,181)
	$0	$0	$0
Total Estimated Net Effect on All State Funds	$40,599	($51,763)	($20,181)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1998	FY 1999	FY 2000
None	$0	$0	$0
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

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 5 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Economic Development (DED)-Professional Registration (DPR) assume the proposed legislation would result in the licensure of 1,000 individuals and 500 establishments biennially, with a projected annual growth rate of 3%. The number of potential licensees was based on an estimate from the National Certification Board for Therapeutic Massage and the American Therapeutic Massage Association - Missouri Chapter. The initial registration fee would be set at $50 with a $25 renewal fee for individuals. For establishments, the initial registration fee would be set at $100 with a $50 renewal fee.

To implement the legislation, DPR asserts the need for one Licensure Technician I (1 FTE at $18,696 per year) to provide clerical and technical support directly to the Principal Assistant and the Commission. This position will be responsible for processing applications for licensure, as well as responding to any inquiries relating to the licensure law or rules and regulations.

It is assumed the Commission would meet four times per year for two days each. Associated travel costs (mileage, lodging and meals) would be $10,741 per year. It is assumed the Commission would meet only two times in FY 99.

DPR has based postage and printing costs on the actual FY 97 usage for the Chiropractic Board, a board of similar size and has estimated costs in FY 99 to be $9,255, and $14,029 in subsequent years. Additional costs would be incurred the first year for statute and rule mailings to applicants and for the first year for start up printing of rules, letterhead and envelopes. Office and communication expenses and equipment are based on estimated existing costs within the Division.

Based on FY complaints for the Chiropractic Board (a board of similar size), DPR assumes there would be approximately 30 complaints filed with the Commission each year. It is assumed the complaints and investigations would not start until FY 01. It is also estimated that 10% (3 investigations) of complaints filed would require field investigations. It is assumed that any professional expertise needed in an investigation would be handled by in-house staff and Commission members. However, if there are substantially more complaints than estimated or additional legislation is passed or if it would be necessary to contract with outside professional experts, additional staffing, or expense and equipment would be needed.

It is estimated there would be 500 establishments that would need to be inspected prior to initial licensure and 530 establishments that would require inspection within 90 days of their renewal date. It is assumed per diem inspectors would be utilized for each inspection and each inspector could perform six inspections per day. Biennial travel costs associated with these inspections would be $5,440 and biennial per diem costs would be $1,275 for each of the five inspectors.

ASSUMPTION (continued)

It is assumed that existing staff would design, program, and implement a computer licensure program. However, if costs are higher than anticipated, further monies will be required.

Also, it is assumed the Board would utilize a nationally standardized examination. However, if the Commission should elect to develop its own examination, costs for such an examination range from $10,000 to $50,000. It is assumed that the Commission will utilize a professional testing service to administer the exam, thus, all exam fees will be paid directly to the testing service by the exam applicant.

It is assumed the Office of the Attorney General (AGO) would provide approximately 60 hours of assistance per year with rules, opinions and meetings. Based on an hourly cost of $56.39, the annual total would be $3,383. Also, it is estimated that 25% of the investigations (1 case) would be forwarded to the AGO for further action. It is assumed there would not be any cases until FY 01. Based on a cost of $5,400 per case, the annual cost would be $5,400.

It is assumed the funds received from licensees would be deposited into the Healing Arts Fund, with all associated expenses deducted from such fund.

Officials from the Office of the Attorney General (AGO) assume they would need one Assistant Attorney General I (1 FTE at $30,000 per year) and associated expense and equipment to provide legal representation to the Board. However, Oversight assumes DPR has included such costs in the Other Costs portion of the fiscal impact specifications below.

Officials from the Administrative Hearing Commission (AHC) and the Office of State Courts Administrator (CTS) assume the proposed legislation would have either minimal or no fiscal impact on their agencies.

FISCAL IMPACT - State Government	FY 1998	FY 1999	FY 2000
	(10 Mo.)
HEALING ARTS FUND
Income-Division of Professional Registration (DPR)
License Fees/Renewals	$100,000	$3,000	$54,500
Costs-DPR
Personal Service (1 FTE)	($15,969)	($19,642)	($20,134)
Fringe Benefits	(4,476)	(5,506)	(5,644)
Inspector Per Diem	(6,375)	0	(6,375)
Expense and Equipment	(29,198)	(26,131)	(33,211)
Other Costs/AGO Costs	(3,383)	(3,484)	(9,317)
Total Costs - DPR	($59,401)	($54,763)	($74,681)
ESTIMATED NET EFFECT TO
HEALING ARTS FUND	$40,599	($51,763)	($20,181)
FISCAL IMPACT - Local Government	FY 1998	FY 1999	FY 2000
	(10 Mo.)
	$0	$0	$0

FISCAL IMPACT - Small Business

This proposal could have a direct fiscal impact on small businesses.

DESCRIPTION

The proposed legislation would establish licensure for massage therapy. Massage therapy would be defined as a health care profession which treats the body's tonus system through the scientific or skillful manipulation of the soft tissue of the body.

The Advisory Commission for Massage Therapists would be established within the Division of Professional Registration. The bill would contain provisions regarding the composition of the board, its duties, terms of service, compensation, meetings, election of officers, and the removal of its members.

The board would take applications, give examinations, collect fees; renew, suspend, and revoke licenses; conduct survey inspections within 90 days of license renewal; and file complaints with the Administrative Hearing Commission.

The bill also would contain certain criteria that must be met before obtaining a license which include an age requirement, passage of an accredited examination and completion of a board-approved curriculum.

DESCRIPTION (continued)

The proposal would set the initial registration fee for individuals at $50 and biennial renewal at $25. The initial registration fee for businesses would be set at $100 and biennial renewal at $50.

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 Revenues.

SOURCES OF INFORMATION

Department of Economic Development-Professional Registration

Office of the Attorney General

Administrative Hearing Commission

Office of State Courts Administrator

Jeanne Jarrett, CPA

Director

January 19, 1998