LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS FISCAL IMPACT STATEMENT LS 6591 NOTE PREPARED: Dec 17, 2024 BILL NUMBER: SB 164 BILL AMENDED: SUBJECT: Licensed Professional Music Therapists. FIRST AUTHOR: Sen. Becker BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: Licensing of Music Therapists– The bill provides for the licensure of professional music therapists by the Medical Licensing Board. Music Therapy Advisory Council– The bill establishes the Music Therapy Advisory Council to advise the Medical Licensing Board. 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, 2025. Explanation of State Expenditures: Music Therapy Advisory Council– The bill establishes the Music Therapy Advisory Council (Council). Members would serve with no compensation. Therefore, there would be no fiscal impact from the Council’s membership. The Professional Licensing Agency (PLA) 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 have an increase in workload to assistance to the Council. The board typically meets 12 times per year so it is likely the board would be able to complete any business related to the Council within their regularly scheduled meetings. If the board would need an additional meeting to conduct business related to the Council, it would cost approximately $1,300 at full attendance. Licensing of Music Therapists– The following table provides the estimated initial and ongoing cost to the PLA to develop the license. SB 164 1 Table. Estimated Costs for Music Therapist License Expenditure Type Explanation Estimated Cost Low High License Development (FY 2026 Only) Salary cost to the PLA to develop new licenses (includes rule development and IT expenditures) $83,200 $123,500 Total Ongoing Administration Costs (FY 2026 and Beyond) Staff costs for application review, clerical support, and ongoing program management. $5,400 $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 2026. Additional license fee revenue is estimated between $10,000 and $12,000 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 bordering the state. 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 $138. 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. Fines– The Medical Licensing Board may impose a fine between $100 and $1,000 for violations of the provisions of this bill. Fines would be deposited into the state General Fund. Additional Information– There are currently 363 music therapists in Indiana who are certified by the national Certification Board for Music Therapists. There are another 156 certified music therapists in Chicago, Cincinnati, and Louisville metro areas that could potentially seek reciprocal licensure under the bill. 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. State Agencies Affected: Medical Licensing Board; Professional Licensing Agency. Local Agencies Affected: Trial courts, local law enforcement agencies. SB 164 2 Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual; LSA’s license cost estimator FY 2025 version; cbmt.org. Fiscal Analyst: Chris Baker, 317-232-9851. SB 164 3