COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:4821S.01I Bill No.:SB 1284 Subject:Professional Registration and Licensing; Counseling; Mental Health Type:Original Date:January 18, 2024Bill Summary:This proposal modifies provisions relating to professional counselors. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net Effect on General Revenue $0$0$0 ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Committee of Professional Counselors Fund($80,626)$18,750$21,778 Total Estimated Net Effect on Other State Funds ($80,626)$18,750$21,778 Numbers within parentheses: () indicate costs or losses. L.R. No. 4821S.01I Bill No. SB 1284 Page 2 of January 18, 2024 KC:LR:OD ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net Effect on All Federal Funds $0$0$0 ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2025FY 2026FY 2027Committee of Professional Counselors Fund1 FTE1 FTE1 FTE Total Estimated Net Effect on FTE1 FTE1 FTE1 FTE ☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any of the three fiscal years after implementation of the act or at full implementation of the act. ☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of the three fiscal years after implementation of the act or at full implementation of the act. ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Local Government$0$0$0 L.R. No. 4821S.01I Bill No. SB 1284 Page 3 of January 18, 2024 KC:LR:OD FISCAL ANALYSIS ASSUMPTION Section 337.507 – Provisional Counselor License Officials from the Department of Commerce and Insurance (DCI) assume this proposal requires the Division of Professional Registration to provide electronic access to applicants within 15 business days. Section 337.510 requires the Division to issue a provisional counselor license within 15 business days after receipt of a completed application. The division may refuse to issue a provisional license if the applicant has a disqualifying criminal record, a license that has been denied or revoked in any state or currently under investigation or has a pending complaint in any state. Rule 20 CSR 2095-2.005 defines the requirements for a provisional license depending upon an applicant’s level of education. Provisional licenses are void upon its expiration date or when supervision is terminated. It also allows for the extension of a provisional license. Provisional License Revenue 600 Estimated provisional licenses (Annually) $165 Provisional license fee Total Revenue - $99,000 FY 2026 • Projected revenue reflects fees collected for all categories of licensure. • A 3% growth rate has been estimated. • It is estimated that the collection of temporary license fees will begin in FY 2026. • If the number of licensees largely vary from the number estimated above, the licensure fees will be adjusted accordingly. Board Per Diem DCI assumes to meet the fifteen-day requirement, twelve additional meetings will be necessary to approve the completed provisional applications. It is assumed that these meetings will be conference calls so there will be no travel expenses. Staffing-Estimated at PR current staffing salaries - 1 FTE Customer Service Representative ($38,100 annually) needed to provide technical support, process applications for licensure, and respond to inquiries related to the licensure law and/or rules and regulations. In summary, DCI assumes a cost of $80,626 in FY 2025, a net revenue of $18,750 in FY 2026 and $21,778 in FY 2027 to the Committee of Professional Counselors Fund (0672), as a result of the implementation of the changes in this proposal. L.R. No. 4821S.01I Bill No. SB 1284 Page 4 of January 18, 2024 KC:LR:OD Oversight does not have any information to the contrary. Therefore, Oversight will reflect the revenue and cost estimates as provided by DCI in the fiscal note. FISCAL IMPACT – State GovernmentFY 2025 (10 Mo.) FY 2026FY 2027COMMITTEE OF PROFESSIONAL COUNSELORS FUND (0672) Revenue – DCI §337.507 Provisional Counselor License$0$99,000$101,970 Cost – DCI §337.507 Personal Service($31,750)($38,862)($39,639) Fringe Benefits($24,822)($30,082)($30,383) Equipment and Expense($15,579)$0$0 Other Cost($8,475)($11,306)($10,170)Total Cost - DCI($80,626)($80,250)($80,192) FTE Change - DCI1 FTE1 FTE1 FTEESTIMATED NET EFFECT TO THE COMMITTEE OF PROFESSIONAL COUNSELORS FUND (0672)($80,626)$18,750$21,778 Estimated Net FTE Change to the Committee of Professional Counselors Fund (0672)1 FTE1 FTE1 FTE FISCAL IMPACT – Local GovernmentFY 2025 (10 Mo.) FY 2026FY 2027$0$0$0 FISCAL IMPACT – Small Business A fiscal impact to small business counselors would be expected as a result of this proposal. L.R. No. 4821S.01I Bill No. SB 1284 Page 5 of January 18, 2024 KC:LR:OD FISCAL DESCRIPTION This act modifies the process for licensure as a professional counselor. Within fifteen days of receipt of an application for licensure as a professional counselor, the Division of Professional Registration ("Division") shall provide the applicant with electronic access to the application. Any missing information or documentation may be electronically submitted by the applicant to the Division, with certain exceptions provided in the act. Upon submission of a completed application by an applicant who holds a graduate degree from certain accredited organizations, the Division shall issue the applicant a provisional license. Such license shall be valid until the application is reviewed by the Committee for Professional Counselors. If the application is rejected by the Committee, then the provisional license shall terminate immediately. If the application is approved, then the provisional license shall remain in effect until the termination date provided by rule. The act authorizes the Division to refuse to issue a provisional license through the expedited process in the act for certain listed reasons. This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. SOURCES OF INFORMATION Department of Commerce and Insurance Julie MorffRoss StropeDirectorAssistant DirectorJanuary 18, 2024January 18, 2024