Fiscal Note - SB 0198 - Creates An Interior Design Council Within the Department of Economic Development
L.R. NO. 0865-01
BILL NO. SB 198
SUBJECT: Licenses - Professional: Interior Designers
TYPE: Original
DATE: February 3, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Interior Designer
Council $210,750 ($173,820) $130,527
Fees ($86,002) $86,002 $0
Total Estimated
Net Effect on All
State Funds $124,748 ($87,818) $130,527
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None $0 $0 $0
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
Officials from the Department of Economic Development (DED)-Professional
Registration (DPR) assume the proposed legislation would result in the
registration of 1,405 individuals biennially, with a projected annual growth
rate of 3%. DPR used data based on an indirect estimate from a 1994
Occupational Survey conducted by the Department of Labor and Industrial
Relations, which stated there are currently 1,315 individuals reporting
themselves as interior designers, plus it is estimated that a nominal 2% of
the 4,505 active architects would apply for registration (90). The initial
registration fee and biennial renewal fee would be set at $150. The FY 99
revenue would only reflect licensing for the 3% growth rate (42 individuals)
at 50% of the biennial license fee.
To implement the legislation, DPR asserts the need for .5 Principal Assistant
(.5 FTE at $33,879 per year) to serve as senior executive officer of the
board and to be responsible for overseeing the licensure and regulation
program and a .5 Licensure Technician I (.5 FTE at $16,488 per year) to
provide clerical and technical support directly to the Principal Assistant
and the Board and to be responsible for processing applications for
licensure, as well as respond to any inquiries relating to the licensure law
or rules and regulations.
It is assumed the Board would meet four times per year for two days each.
Each of the five council members would receive a $50 per day per diem for an
annual total of $400 per member, as well as associated travel costs (mileage,
lodging and meals). It is assumed the Council would have only two meetings
in FY 98.
DPR has based postage and printing costs on the actual FY 96 usage for
Professional Counselors, a board of similar size and has estimated costs in
FY 98 to be $16,283, and $13,698 in subsequent years. Office and
communication expenses and equipment are based on estimated existing costs
within the Division.
DPR has included costs to investigate complaints and assumes there would be
nine complaints and investigations per year. This would entail costs for
investigators and professional experts, as well as associated travel costs,
resulting in an annual total of $19,782.
DPR assumes there would be a one time cost to design, program and implement a
computer registration program to accommodate interior designers for a total
of $14,400 (240 hours x $60 per hour).
Also, it is assumed the Council would utilize the examination(s) offered by
the National Council for Interior Design Qualification. However, if the
Council would elect to develop its own examination, the cost is estimated to
be somewhere between $10,000 and $50,000.
DPR estimates General Revenue transfers to be $16,476 per year, based on the
actual FY 96 general revenue transfer from Professional Counselors, a board
of similar size. It is assumed the Interior Designer Council Fund would
reimburse the PR Fees Fund for the start-up costs incurred in FY 98.
Additionally, DPR has included rental costs to accommodate the additional
FTEs. However, Oversight assumes DPR would locate new FTEs in existing
facilities and has not included rental costs as a result of this proposal.
Oversight has also adjusted equipment requests based on OA guidelines.
Officials from the Office of the Secretary of State (SOS) assume the proposed
legislation would require the printing of additional pages in the Missouri
Register and the Code of State Regulations and have estimated a one-time
publishing and distribution cost of $415 for FY 1998. SOS acknowledges that
additional costs could, to some degree, be offset by those fees collected
from subscriptions, given that the number of subscribers remains constant or
increases. While this bill alone would not require SOS to acquire additional
staff, SOS assumes the cumulative effect of additional Register and Code
publishing duties could, at some point, require additional staff or
equipment. However, Oversight assumes SOS could increase fees to cover any
additional costs, per Section 536.033, RSMo.
Officials from the Office of the Attorney General (AGO) did not respond to
our fiscal impact request. However, Oversight assumes DPR has included any
additional costs which could be incurred by the AGO in the Other Costs
category as a GR transfer in the fiscal impact specifications below.
Officials from the Department of Revenue (DOR),Office of State Courts
Administrator (CTS), Administrative Hearing Commission (AHC) and the Office
of the State Treasurer (STO) assume the proposed legislation would have
either minimal or no fiscal impact on their agencies.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
INTERIOR DESIGNER COUNCIL FUND
Revenue-Division of Professional Registration (DPR)
Registration Fees/Renewals $210,750 $3,150 $223,500
Costs-DPR
Reimbursement to PR Fees Fund $0 ($176,970) ($92,973)
ESTIMATED NET EFFECT TO
INTERIOR DESIGNER COUNCIL FUND $210,750 ($173,820) $130,527
PR FEES FUND
Income-Division of Professional Registration (DPR)
Reimbursement from Interior Designer
Council Fund $0 $176,970 $92,973
Costs-DPR
Personal Service (1 FTE) ($21,502) ($26,458) ($27,120)
Fringe Benefits (6,135) (7,548) (7,737)
Board Member Per Diem (1,000) (2,000) (2,000)
Expense and Equipment (40,889) (38,486) (39,640)
Other Costs/GR Transfers (AGO) (16,476) (16,476) (16,476)
Total Costs - DPR ($86,002) ($90,968) ($92,973)
ESTIMATED NET EFFECT TO
PR FEES FUND ($86,002) $86,002 $0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(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
The proposed legislation would establish the Interior Design Council within
Division of Professional Registration (DPR) to register and regulate interior
designers. The Council would be required to meet at least two times per year
and members could receive compensation set by DPR not to exceed $50 per day,
plus expenses. The proposal would include minimum qualifications for a
registered interior designer and registrations issued to those who qualify
would be valid for two years. In addition, the Interior Designer Council
Fund would be created for deposit of fees collected on behalf of
registration of interior designers.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
This legislation could affect Total State Revenues.
SOURCES OF INFORMATION
Department of Economic Development-Professional Registration
Office of the Secretary of State
Department of Revenue
Office of State Courts Administrator
Administrative Hearing Commission
Office of the State Treasurer
NOT RESPONDING: Office of the Attorney General
This Fiscal Note is not an official copy and should not be quoted or cited.