LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS 200 W. Washington St., Suite 301 Indianapolis, IN 46204 (317) 233-0696 iga.in.gov FISCAL IMPACT STATEMENT LS 6695 NOTE PREPARED: Dec 27, 2023 BILL NUMBER: HB 1103 BILL AMENDED: SUBJECT: Licensed Professional Music Therapists. FIRST AUTHOR: Rep. Gore BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: Music Therapy Advisory Council– The bill provides for the licensure of professional music therapists by the Medical Licensing Board. The bill establishes a Music Therapy Advisory Council to advise the board. Licensing of Music Therapists– The bill establishes requirements and procedures for an individual to be licensed as a professional music therapist. Penalty Provision– The bill prohibits a person who is not licensed as a music therapist from using certain titles or certain words in a title. Effective Date: July 1, 2024. Explanation of State Expenditures: Music Therapy Advisory Council– The bill would establish the Music Therapy Advisory Council. Members would serve with no compensation; therefore, there would not be an impact to state expenditures from the Council’s establishment or operation. However, the Governor’s Office will experience a workload increase to staff the Council. This is a routine administrative function of the Governor’s Office. The Medical Licensing Board may see an increase in workload as well in the assistance to the Council. The MLB typically meets 12 times per year. Therefore, it is likely if any business were needed with respect to the Council, the board would likely complete it within a regularly scheduled meeting. If the Medical Licensing Board needed an additional meeting to conduct business with the Council, it would require approximately $1,300 at full attendance. HB 1103 1 Licensing of Music Therapists– The bill does not specify that the Professional Licensing Agency (PLA) would administer the licensing of music therapists. However, given the PLA’s association with the Medical Licensing Board, it is likely the PLA would be the establishing and administering agency for the license. The following table provides the estimated initial and ongoing cost to develop the license. Estimated Costs for Music Therapist License Expenditure Type Explanation Estimated Cost Low High License Development (FY 2025 Only) Salary cost to the PLA to develop new licenses (includes rule development and IT expenditures) $76,300 $112,700 Total Ongoing Administration Costs (FY 2025 and Beyond) Staff costs for application review, clerical support, and ongoing program management. $3,400 $6,400 Explanation of State Revenues: Licensing of Music Therapists– The bill would result in an increase of state General Fund revenue from license fees collected beginning in FY 2025. Additional license fee revenue is estimated between $10,000 and $13,000 per biennium (at a proposed ongoing expenditure breakeven fee of $20 to $23 per biennium) based on the number of music therapy practitioners with national credentials currently practicing in Indiana or in urban areas boardering the state. Civil Penalty– General Fund revenue could see a minor increase from fines established by the bill. Additional Information– There are currently 385 music therapists in Indiana who are certified by the national Certification Board for Music Therapists. There are another 164 certified music therapists in Chicago, Cincinnati, and Louisville metro areas that could potentially seek reciprocal licensure under the bill. Penalty Provision– This bill establishes a Class A misdemeanor for a person to use certain titles or certain words in a title if that person is not licensed as a music therapist. If additional court cases occur and fines are collected, revenue to both the Common School Fund (from fines) and the state General Fund (from court fees) would increase. The maximum fine for a Class A misdemeanor is $5,000. The total fee revenue per case would range between $113 and $135. The amount of court fees deposited will vary depending on whether the case is filed in a court of record or a municipal court. The following linked document describes the fees and distribution of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases. Explanation of Local Expenditures: Penalty Provision– A Class A misdemeanor is punishable by up to one year in jail. Explanation of Local Revenues: Penalty Provision– If additional court actions occur and a guilty verdict is entered, more revenue will be collected by certain local units. If the case is filed in a court of record, the county general fund will receive $47.40 and qualifying municipalities will receive a share of $3.60. If the case is filed in a municipal court, the county receives $30, and the municipality will receive $46. The following linked document describes the fees and distribution of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases. HB 1103 2 State Agencies Affected: Governor; Professional Licensing Agency. Local Agencies Affected: Trial courts; local law enforcement agencies. Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual; LSA’s license cost estimator FY 2023 version; https://my.cbmt.org/. Fiscal Analyst: Chris Baker, 317-232-9851. HB 1103 3