COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 3973-02

Bill No.: SCS for SB 1074

Subject: Boards, Commissions, Committees, Councils; Licenses - Professional; Economic Development Department

Type: Original

Date: March 9, 2004




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on

General Revenue

Fund

$0 $0 $0



ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Barber $0 $3,000 $70
Total Estimated

Net Effect on Other

State Funds

$0 $3,000 $70



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.











ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2005 FY 2006 FY 2007
Local Government $0 $0 $0


FISCAL ANALYSIS



ASSUMPTION



Officials from the Department of Economic Development - Division of Professional Registration state the proposal creates a barber apprentice registration and apprentice supervisor certificate of registration. The State Board of Barber Examiners estimates that there will be approximately 50 apprentice applicants and 50 apprentice supervisor applicants. It is estimated that a $10 fee will be charged to the apprentice and a $50 fee charged to the supervisor. A 3% growth rate has also been calculated. Supervisor licenses would be for a two year period. Using the 3% growth rate, 2 additional supervisors and 2 additional apprentices would added in FY 07. Using a two-year licensing period, the additional supervisors would pay $25 for a 1-year registration, so that all registrations will come due at the same time. It is assumed that all costs can be covered by the board's current appropriation.



Officials from the Secretary of State's Office (SOS) assumed the rules, regulations and forms issued by the State Board of Barber Examiners could require as many as 16 pages in the Code of State Regulations. For any given rule, roughly half again as many pages are published in the Missouri Register as in the Code because cost statements, fiscal notes and the like are not repeated in the Code. These costs are estimated. The estimated cost of a page in the Missouri Register is $23. The estimated cost of a page in the Code of State Regulations is $27. The actual costs could be more or less the SOS's estimated cost of $984 for FY 2005. The impact of this legislation in future years is unknown and depends upon the frequency and length of rules, filed, amended, rescinded or withdrawn.

ASSUMPTION (continued)



Oversight assumes the SOS could absorb the costs of printing and distributing regulations related to this proposal. If multiple bills pass which require the printing and distribution of regulations at substantial costs, the SOS could request funding through the appropriation process. Any decisions to raise fees to defray costs would likely be made in subsequent fiscal years.



This proposal will increase total State Revenue.



FISCAL IMPACT - State Government FY 2005

(10 Mo.)

FY 2006 FY 2007
BARBER FUND

Income - Dept of Economic Development - Division Professional Registration
License Fees
Apprentices $0 $500 $20
Supervisors $0 $2,500 $50
Total Income - Department of Economic Development - Professional Registration

$0


$3,000


$70
ESTIMATED NET EFFECT ON BARBER FUND

$0


$3,000


$70




FISCAL IMPACT - Local Government FY 2005

(10 Mo.)

FY 2006 FY 2007
$0 $0 $0



FISCAL IMPACT - Small Business



Small businesses operating barber shops, barber apprentice supervisors, and barber schools could be fiscally impacted as a result of this proposal.



DESCRIPTION



This proposal requires apprentice barbers to be registered as an apprentice by the Barber Board. Such apprentice applicants must be at least 17 years of age. Persons who want to act as apprentice supervisors must possess a license to practice as a barber, complete an eight-hour DESCRIPTION (continued)



apprentice supervision instruction course, pay the appropriate fees, and be issued a certificate of registration as a barber apprentice supervisor.



An apprentice must complete at least 2,000 hours under the direct supervision of a licensed barber apprentice supervisor in order to be certified as a barber. The sufficiency of all qualifications of applicants are determined by the Board. The apprentice training must be recognized by the board for a period not to exceed five years.



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

Division of Professional Registration

Office of Secretary of State

Administrative Rules Division









Mickey Wilson, CPA

Director

March 9, 2004