COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 2581-01

Bill No.: SB 1080

Subject: Cosmetology; Economic Development Dept; Licenses - Professional

Type: Original

Date: March 8, 2002




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2003 FY 2004 FY 2005
Cosmetology Board Fund $0 $25,000 $375
Total Estimated

Net Effect on All

State Funds

$0 $25,000 $375



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2003 FY 2004 FY 2005
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2003 FY 2004 FY 2005
Local Government $0 $0 $0

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.

FISCAL ANALYSIS



ASSUMPTION



Officials with the Department of Economic Development - Division of Professional Registration stated that the Cosmetology Board estimates that there will be approximately 500 applicants for licensure with a 3% growth rate. They further estimate that a $50 biennial fee will be charged. It is assumed that all costs can be covered by the board's current appropriation.



FISCAL IMPACT - State Government FY 2003

(10 Mo.)

FY 2004 FY 2005
COSMETOLOGY BOARD FUND
Income - Registration fees $0 $25,000 $375



FISCAL IMPACT - Local Government FY 2003

(10 Mo.)

FY 2004 FY 2005
$0 $0 $0



FISCAL IMPACT - Small Business



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



DESCRIPTION



This proposed legislation 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, with a minimum of 100 hours of classroom training before performing any acts of hair braiding on a patron or customer of a cosmetology school 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.



This legislation 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

Division of Professional Registration







Mickey Wilson, CPA

Acting Director

March 8, 2002