SB 0825 - Fiscal Note

Fiscal Note - SB 0825 - Creates the Interior Design Council within the Department of Economic Development

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 3402-01

BILL NO. SB 825

SUBJECT: Licenses - Professional

TYPE: Original

DATE: February 13, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Interior Designer Council	$148,177	($62,200)	$146,953
PR Fees	$0	$0	$0
Total Estimated Net Effect on All State Funds	$148,177	($62,200)	$146,953

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 5 pages.

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.

It is assumed the Interior Designer Council Fund would reimburse the PR Fees Fund for all expenses paid by PR Fees Fund.

DPR is requesting an additional 1.0 FTE to carry out duties generated by this proposal. The additional employees would include a .5 Principal Assistant (.5 FTE at $41,000 per year) to serve as senior executive officer of the council and to be responsible for overseeing the licensure and regulation program and a .5 Licensure Technician I (.5 FTE at $18,696 per year) to provide clerical and technical support directly to the Principal Assistant and the Council 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 Council would meet four times per year for two days each. Each Council member would receive a $50 per diem, for an annual total for the five members of $2,000 ($50 x 5 x 8). Associated travel costs (mileage, lodging and meals) would be $7,028 per year. It is assumed the Council would meet only two times in FY 99.

DPR has based postage and printing costs on the actual FY 97 usage for a board of similar size and has estimated costs in FY 99 to be $8,669 and $14,029 in subsequent years. The first year costs would include printing and postage for statute and rule mailings to applicants and for first year start up printing of rules, letterhead and envelopes. Office and communication expenses and equipment are based on estimated existing costs within the Division.

Based on FY 97 complaints for a Board of similar size, DPR assumes there would be approximately 30 complaints filed with the Council each year. It is assumed the complaints and investigations would not start until FY 01. It is also estimated that 10% (3 investigations) of complaints filed would require field investigations. It is assumed that any professional expertise needed in an investigation would be handled by in-house staff and Council members. However, if there are substantially more complaints than estimated or additional legislation is passed or if it would be necessary to contract with outside professional experts, additional staffing, or expense

ASSUMPTION (continued)

and equipment would be needed. Total investigative travel expenses are estimated at $495 annually.

It is assumed the Office of the Attorney General (AGO) would provide approximately 60 hours of assistance per year with rules, opinions and meetings. Based on an hourly cost of $56.39, the annual total would be $3,383. Also, it is estimated that 25% of the investigations (1 case) would be forwarded to the AGO for further action. It is assumed there would not be any cases until FY 01. Based on a cost of $5,400 per case, the annual cost would be $5,400.

DPR assumes that existing staff would design, program, and implement a computer licensure program. However, if costs are higher than anticipated, further monies would be required.

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.

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 $605 for FY 1999. 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) assume they would need one additional Assistant Attorney General I (1 FTE at $30,000 per year) to provide legal representation to the Council. However, Oversight assumes DPR has included any additional costs which would be incurred by the AGO in the Other Costs category 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 1999	FY 2000	FY 2001
	(10 Mo.)
INTERIOR DESIGNER COUNCIL FUND
Revenue-Division of Professional Registration (DPR)
Registration Fees/Renewals	$210,750	$6,300	$223,500
Costs-DPR
Transfer to PR Fees Fund	($62,573)	($68,500)	($76,547)
ESTIMATED NET EFFECT TO
INTERIOR DESIGNER COUNCIL FUND	$148,177	($62,200)	$146,953
PR FEES FUND
Income-Division of Professional Registration (DPR)
Transfer from Interior Designer
Council Fund	$62,573	$68,500	$76,547
Costs-DPR
Personal Service (1 FTE)	($25,494)	($31,359)	($32,143)
Fringe Benefits	(7,426)	(9,350)	(9,570)
Board Member Per Diem	(1,000)	(2,000)	(2,000)
Expense and Equipment	(25,270)	(22,307)	(23,517)
Other Costs/AGO	(3,383)	(3,484)	(9,317)
Total Costs - DPR	($62,573)	($68,500)	($76,547)
ESTIMATED NET EFFECT TO
PR FEES FUND	$0	$0	$0
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	$0	$0	$0

FISCAL IMPACT - Small Business

This proposal could have a direct fiscal impact on small businesses.

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 would 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

Office of the Attorney General

Jeanne Jarrett, CPA

Director

February 13, 1998