SB 0697 - Fiscal Note

Fiscal Note - SB 0697 - Creates State Board of Certified Shorthand Reporter Examiners to license shorthand reporters

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 3068-02

BILL NO. SB 697

SUBJECT: Licenses - Professional: Shorthand Reporters

TYPE: Original

DATE: February 10, 1998

---

FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
General Revenue	$220	($3,579)	$13,815
Total Estimated Net Effect on All State Funds	$220	($3,579)	$13,815

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials of the Office of State Courts Administrator (CTS) assume the proposed legislation would have no additional cost to the judicial department budget. The proposal would appear to duplicate the present process for certification of court reporters provided in Supreme Court Rule 14. The principal difference would be that the proposed Board would be appointed by the Governor; therefore, any costs resulting from this proposal would be an executive branch expense.

Officials of the Department of Economic Development (DED) - Division of Professional Registration (DPR) assume the proposed legislation would have no fiscal impact on their agency, since it is not specifically assigned to DED. It appears to be a new "independent" agency that reports to no particular division or department within state government.

Officials from the Office of Administration (COA) - Administrative Hearing Commission (AHC) assume the proposal would have no fiscal impact on their agency.

For purposes of this fiscal note, Oversight has assumed the newly created State Board of Certified Shorthand Reporter Examiners would be located within Office of Administration (COA). Also, Oversight assumes the new Board would certify 325 shorthand reporters, the number of reporters that are currently licensed under the Supreme Court rule. Oversight has based expenses to implement the proposal on costs submitted by DPR for such a Board with a similar licensee count.

Oversight assumes any increased work load to implement the proposal could be accomplished with existing staff and has not included any associated costs for additional FTEs. However, processing the initial applications could entail the need for contract clerical staff, resulting in a one-time cost of $12,245 ($7.17 per hour contract clerical staff x 1,733 hours = $12,425) in FY 99. Additional costs associated with the licensing of these applicants in regard to postage and printing would be $2,160 ($6.17 x 350 licensees) the first year for the initial mailing and approximately $500 per year for subsequent years. There should be minimal telephone and other office expense. The costs for such a Board to meet annually for two days would be $2,375. Since the proposal does not provide for enforcement, no investigative costs have been calculated.

Based on annual costs of approximately $4,000, after the initial start-up costs in FY 99, the biennial licensure fee would be set at $50 to cover the costs of implementing the proposal. In subsequent years, the fee could be adjusted in accordance with expenses, if necessary.

FISCAL IMPACT - State Government						FY 1999			FY 2000		FY 2001
						(10 Mo.)
GENERAL REVENUE FUND
Income-Division of Professional Registration (DPR)
License Fees/Renewals							$17,500		$0		$17,500
Costs-DPR
Expense							($17,280)		($3,579)		($3,685)
ESTIMATED NET EFFECT TO
GENERAL REVENUE FUND							$220		($3,579)		$13,815
FISCAL IMPACT - Local Government						FY 1999			FY 2000		FY 2001
						(10 Mo.)
							0		0		0
FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of this proposal.

DESCRIPTION

This proposal would create the State Board of Certified Shorthand Reporter Examiners to license shorthand reporters.

This legislation is not federally mandated and would not require additional capital improvements or rental space.

However, the proposal would duplicate another program already in existence. Currently, the certification of court reporters is provided for in Supreme Court Rule 14.

This legislation could affect Total State Revenues.

SOURCES OF INFORMATION

Office of the State Courts Administrator

Department of Economic Development - Professional Registration

Administrative Hearing Commission

Jeanne Jarrett, CPA

Director

February 10, 1998