Fiscal Note - SB 0295 - Department of Health Shall Regulate Massage
L.R. NO. 103-03
BILL NO. SB 295
SUBJECT: Health Department: Licenses
TYPE: Original
DATE: February 17, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
General Revenue ($28,743) ($151,835) ($147,009)
Total Estimated
Net Effect on All
State Funds ($28,743) ($151,835) ($147,009)
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
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
FISCAL ANALYSIS
ASSUMPTION
The Departments of Revenue (DOR) and Economic Development (DED) - Division of
Professional Registration (DPR) assume no fiscal impact.
Officials of the Missouri Highway Patrol (MHP) stated that to run background
checks would have minimal administrative impact in time and labor. Officials
assume that the applicant would pay for the background checks which would
result in zero impact. Officials assume that current staffing levels would
be able to handle the increased workload.
Officials of the Department of Health (DOH) assume that this proposal would
have fiscal impact. Officials estimate that statewide there would be
approximately 200 massage therapy businesses licensed. Officials assume that
actual inspections and licensing would begin in FY 1999. Fiscal year 1998
would be consumed establishing rules and regulations, designing forms, and
organizing staff.
Officials stated that based on similar programs that require DOH inspections,
this program would require 2 FTE, Health Facility Nurse Consultants to
conduct inspections. These 2 inspectors would begin in fiscal year 1999.
1 FTE Health Program Representative III, to draft rules and regulations and
would be responsible for processing applications and issuing licenses, and 1
FTE Clerk Typist II would provide clerical support for the Health Program
Representative during the regulation promulgation phase and the licensure
policy phase. In addition the Clerk Typist would provide clerical support
for the two inspectors.
Officials stated that office furniture and equipment would be required and
there would be expenses for travel, rent, communications and data
processing.
DOH officials estimate personnel costs for 10 months in FY 98 at $38,637.
This cost would be for (1.0) Health Program Representative III and (1.0)
Clerk Typist II. In FY 99 (2.0) Health Facility Nurse Consultants would
begin inspections. FY 99 personnel costs total $121,675, FY 2000 costs
totaled $124,716. Fringe benefits totaled $11,023 in FY 98; $34,714 in
FY 99; and $35,581 in FY 2000. Equipment and expense costs totaled $23,051
in FY 98, $50,356 in FY 99, and $43,074 in FY 2000.
Fund costs from all categories totaled $72,711 in FY 98; $206,745 in FY 99;
and $203,371 in FY 2000. All estimates have been adjusted for inflation.
DOH officials estimate income from 200 initial inspections and licenses at
$20,000 (200 licenses x $100). Officials assume the initial licensures
would begin in FY 99. Renewals in FY 2000 were estimated to be $10,000
(200 licenses x $50).
Oversight assumes that DOH current legal and supervisory staff could
promulgate rules and regulations and organize and manage the inspection
program, thereby, eliminating the need for 1.0 FTE Health Program
Representative III. Oversight assumes that the Clerk Typist II would process
applications and licenses as well as assist the 2.0 Health Facility Nurse
Consultants.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
GENERAL REVENUE
Income to Department of Health
From License Fees $0 $20,000 $10,000
Cost to Department of Health
Personal Service (3.0 FTE) ($14,078) ($91,455) ($93,741)
Fringe Benefits ($4,016) ($26,092) ($26,744)
Equipment ($4,819) ($8,538) $0
Expense ($5,830) ($25,750) ($26,524)
Total Cost to DOH ($28,743) ($151,835) ($147,009)
TOTAL ESTIMATED NET EFFECT
TO GENERAL REVENUE FUND ($28,743) ($151,835) ($147,009)
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Small Business
Some small businesses would be fiscally impacted because that they would
incur additional costs due to the licensing and inspection requirements of
this proposal.
DESCRIPTION
This act empowers the Department of Health to issue licenses to massage
businesses and massage therapists and to inspect massage businesses to
ensure their compliance with department regulations.
MASSAGE BUSINESS LICENSURE: A person would apply to the Department of
Health to obtain a license to operate a massage business. The application
would include a $100 fee. The Department would issue a license to applicants
who meet the requirements of this act and are approved after a survey
inspection.
A massage business would renew its license annually by submitting a $50
renewal fee. A license could not be transferred. When a massage business
is sold or transferred, a new license must be obtained. The Department would
make any necessary inspections of a massage business for licensing or renewal
of a license.
The Department would send a list of any problems identified during the
inspection to the massage business. The business could file a plan of
correction with the Department or request a resurvey. If the massage
business disagrees with the Department's findings after a resurvey, it could
appeal such findings to the Administrative Hearing Commission.
The Department could refuse to issue, suspend or revoke the license of any
massage business that fails to comply with the provisions of this act or any
Department rule or regulation. The business could appeal such action to the
Administrative Hearing Commission.
CIVIL REMEDIES: A person could file a complaint against a massage business
or massage therapist with the Department. If the Department finds that such
charges warrant a hearing to determine if the business' license should be
revoked, the Department would set a time for a hearing and notify the massage
business of the complaint. The hearing would be conducted before the
Administrative Hearing Commission.
The Department could seek an injunction to prohibit a massage business from
continuing a violation.
MASSAGE THERAPISTS: A person could apply for a license to practice massage
therapy. Such person must be at least 18 years of age, pay a $50 application
fee and either: 1) pass an accredited examination and complete at least 500
hours of training; or 2) be a licensed therapist in another state.
A person who has practiced massage therapy prior to August 28, 1997 and has
not met the licensure requirements could apply for a waiver or provisional
license until such person completes such requirements. A therapist would pay
an annual renewal fee of $25.
PROHIBITED PRACTICES: A person who is not licensed as a therapist or
business could not use the word "massage" or similar words in advertising.
Any advertisement would contain the registration number of the therapist or
business.
No owner or employee could obtain a license if such owner or employee has
been convicted of any offense related to prostitution. Any person who
violates any of the provisions of this act is guilty of a Class A
misdemeanor.
This act preempts any local ordinance that regulates massage businesses.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional rental space.
SOURCES OF INFORMATION
Department of Health
Department of Revenue
Department of Economic Development - Professional Registration
Department of Public Safety - Missouri Highway Patrol
This Fiscal Note is not an official copy and should not be quoted or cited.