PREPARED BY: Mikayla Findlay LB 82 DATE PREPARED: January 23, 2025 PHONE: 402-471-0062 Revision: 00 FISCAL NOTE LEGISLATIVE FISCAL ANALYST ESTIMATE ESTIMATE OF FISCAL IMPACT – STATE AGENCIES (See narrative for political subdivision estimates) FY 2025-26 FY 2026-27 EXPENDITURES REVENUE EXPENDITURES REVENUE GENERAL FUNDS CASH FUNDS FEDERAL FUNDS OTHER FUNDS TOTAL FUNDS See below See below Any Fiscal Notes received from state agencies and political subdivisions are attached following the Legislative Fiscal Analyst Estimate. This bill adopts the Cosmetology Licensure Compact for a licensing pathway to create reciprocity among participant states. Additional work would be required by the Department of Health and Human Services (DHHS) within Program 178 – Professional Licensure however the costs would be recouped through newly assessed fees. Minimal fiscal impact to DHHS. Applicants under the Compact, cosmetologists from other states and newly licensed or renewing Nebraska cosmetologists, would be subject to criminal background check by Nebraska State Patrol. The current rate for a criminal background check by fingerprinting is $45.25. If required, the fee would be paid by the applicant. NSP estimates needing an additional staff person to process the additional applications which are estimated to be approximately 1,000 annual licensees. The agency estimates needing additional General Funds to supplement the cash fund revenue anticipated. ADMINISTRATIVE SERVICES STATE BUDGET DIVISION: REVIEW OF AGENCY & POLT. SUB. RESPONSE LB: 82 AM: AGENCY/POLT. SUB: Nebraska Department of Health & Human Services REVIEWED BY: Ann Linneman DATE: 1 -23-2025 PHONE: (402) 471-4180 COMMENTS: Concur with the Nebraska Department of Education’s assessment of no fiscal impact. ADMINISTRATIVE SERVICES STATE BUDGET DIVISI ON: REVIEW OF AGENCY & POLT. SUB. RESPONSE LB: 82 AM: AGENCY/POLT. SUB: Nebraska State Patrol REVIEWED BY: Ann Linneman DATE: 1 -21-2025 PHONE: (402) 471-4180 COMMENTS: Concur with the Nebraska State Patrol’s assessment of fiscal impact. LB (1) 82 FISCAL NOTE 2025 ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION State Agency or Political Subdivision Name:(2) Department of Health and Human Services Prepared by: (3) John Meals Date Prepared 1-17-25 Phone: (5) 471-6719 FY 2025-2026 FY 2026-2027 EXPENDITURES REVENUE EXPENDITURES REVENUE GENERAL FUNDS CASH FUNDS $0 $0 FEDERAL FUNDS OTHER FUNDS TOTAL FUNDS $0 $0 $0 $0 Return by date specified or 72 hours prior to public hearing, whichever is earlier. Explanation of Estimate: LB82 proposes the Department of Health and Human Services (DHHS) to create the Cosmetology Licensure Compact to facilitate interstate practice and regulation of cosmetology by establishing a regulatory framework for a new multistate licensing program. DHHS, the division of Public Health will submit a uniform data set to the Commission Data System on all individuals to whom the Compact is applicable. The current IT Business Systems Analyst II in the Occupational Licensure Unit will need to update the current licensing database being used to be able to identify ‘single- state’ versus ‘multi-state’ license and transferring data to the Commission’s Data System. The Department estim ates about 80 hours of additional work to complete the update. MAJOR OBJECTS OF EXPENDITURE PERSONAL SERVICES: NUMBER OF POSITIONS 2025-2026 2026-2027 POSITION TITLE 25-26 26-27 EXPENDITURES EXPENDITURES Benefits............................................................................................................................... Operating............................................................................................................................ Travel.................................................................................................................................. Capital Outlay..................................................................................................................... Aid...................................................................................................................................... Capital Improvements......................................................................................................... TOTAL............................................................................................................ $0 $0 Please complete ALL (5) blanks in the first three lines. 2025 LB (1) 82 FISCAL NOTE State Agency OR Political Subdivision Name: (2) Nebraska State Patrol Prepared by: (3) Carol Aversman Date Prepared: (4) 01/15/2025 Phone: (5) 402-471-4545 ESTIMATE PROVIDED BY STATE AGENCY OR POLITICAL SUBDIVISION FY 2025-26 FY 2026-27 EXPENDITURES REVENUE EXPENDITURES REVENUE GENERAL FUNDS $18,621 $19,913 CASH FUNDS $43,802 $43,802 $43,802 $43,802 FEDERAL FUNDS OTHER FUNDS TOTAL FUNDS $62,423 $43,802 $63,715 $43,802 Explanation of Estimate: LB 82 adopts the Cosmetology Licensure Compact. In order to join the Compact, and to maintain eligibility as a Member State, a State must complete several requirements as specified in Article III, Section A of the bill. One of these requirements (Article III (A)(5)) is to implement procedures for considering one or more of the following categories of information from applicants for licensure: criminal history; disciplinary history; or Background Check. Such procedures may include the submission of information by applicants for the purpose of obtaining an applicant’s Background Check. The bill defines a Background Check as the submission of information for an applicant for the purpose of obtaining that applicant’s criminal history record information, as further defined in 28 C.F.R. §20.3(d), from the Federal Bureau of Investigation and the agency responsible for retaining State criminal or disciplinary history in the applicant’s Home State. If the procedure the State chooses to implement to comply with Article III (A) (5) consists of a criminal history or a Background Check, these duties fall under the responsibility of the Nebraska State Patrol. While it is unknown which option will be chosen, for purposes of completing the fiscal note, it has been assumed that it will be either a criminal history or a Background Check. In consultation with the Department of Health and Human Services (DHHS), the Patrol has been advised that this bill does not require cosmetologists who are already licensed to undergo a retroactive background check unless they choose to join the compact. However, going forward all new cosmetologists will be required to submit to a background check regardless of whether or not they choose to join the compact. Based on a 3- year average, DHHS has estimated the number of new licenses to be approximately 968 per year. For purposes of calculating the fiscal note, this amount of new applicants has been used as an estimate for future ongoing costs. The State Patrol has estimated that 1 additional full-time FTE will be needed in order to process the additional applications. Total salaries and benefits for FY 26 are estimated at $33,856 and $12,865 per year respectively. Salaries and benefits for FY 27 are estimated at $34,872 and $13,251 per year respectively. Ongoing OCIO charges for laptop leases and support fees total $2,526 and $2,616 per year for FY 26 and FY 27, respectively. Office supplies have been estimated at approximately $150 per year. One-time costs for computer monitors total $200. Lastly, fees charged by the FBI total $12,826 per year ($13.25 per applicant). Revenues have been estimated at $43,802 per year which will be deposited in the Nebraska State Patrol Cash Fund ($45.25 per applicant). Note that the revenues received by the Cash Fund do not cover the full cost of the expenses. Therefore, the shortfall has been reflected as General Fund costs. _____________________________________________________________________________________________________ _ BREAKDOWN BY MAJOR OBJECTS OF EXPENDITURE Personal Services: POSITION TITLE NUMBER OF POSITIONS 25-26 26-27 2025-26 EXPENDITURES 2026-27 EXPENDITURES Office Specialist 1 1 $33,856 $34,872 Benefits………………………………...…… $12,865 $13,251 Operating…………………………...………. $15,502 $15,592 Travel……………………………………….. Capital outlay…………………...………….. $200 Aid…………………………………………... Capital improvements……………………... TOTAL……………………………… ..... $62,423 $63,715