COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 0137-01

Bill No.: SB 149

Subject: Cosmetology; Economic Development Dept.; Licenses - Professional

Type: Original

Date: January 3, 2003




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on

General Revenue

Fund

$0 $0 $0





ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Cosmetology Board $0 $25,000 $375
Total Estimated

Net Effect on Other

State Funds

$0 $25,000 $375



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.





ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Local Government $0 $0 $0




FISCAL ANALYSIS



ASSUMPTION



Officials with the Department of Economic Development - Division of Professional Registration state the Cosmetology Board estimates there will be approximately 500 applicants for licensure and a $50 biennial fee will be charged. A three percent growth rate is estimated. The Board assumes all costs can be covered by its current appropriation.





FISCAL IMPACT - State Government FY 2004

(10 Mo.)

FY 2005 FY 2006
COSMETOLOGY BOARD FUND
Income - Cosmetology Board $0 $25,000 $375
Registration fees







FISCAL IMPACT - Local Government FY 2004

(10 Mo.)

FY 2005 FY 2006
$0 $0 $0

FISCAL IMPACT - Small Business



Small businesses could be fiscally impacted by this proposal due to increased educational requirements.





DESCRIPTION



This proposal creates a new license classification for cosmetologists to be known as Class CB - braider. Braiders are required to take a course of study of at least 600 hours or the credit hours determined by the formula in Subpart A of Part 668 of Section 668.8 of Title 34 of the Code of Federal Regulations, as amended. The student must earn a minimum of 100 hours or equivalent credits of classroom training before performing any acts of hair braiding on a patron or customer of a cosmetology school. Braiders may also apply for licensure if they have completed a minimum of 1,200 hours as an apprentice under the supervision of a licensed cosmetologist.



This proposal is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. This proposal will increase state revenue.





SOURCES OF INFORMATION



Department of Economic Development - Professional Registration













Mickey Wilson, CPA

Director



January 3, 2003