RULES AND REGULATIONS
Title 49--PROFESSIONAL AND VOCATIONAL STANDARDS
STATE BOARD OF AUCTIONEER EXAMINERS
[49 PA. CODE CH. 1]
Biennial Renewal Fees
[28 Pa.B. 5869] The State Board of Auctioneer Examiners (Board) amends Chapter 1 by adding § 1.41 (relating to schedule of fees) and amending §§ 1.23 and 1.26 (relating to auctioneer licensure examination; and application for auction house and auction company licenses) to read as set forth in Annex A.
The amendments raise the biennial renewal fee for auctioneers, apprentice auctioneers, auction houses and auction companies for the upcoming biennial renewal. The current biennial period expires on February 28, 1999. The biennial renewal fee for apprentice auctioneers increases from $30 to $100 and the biennial renewal fees for auctioneers, auction companies and auction houses increase from $50 to $200.
A. Effective Date
The amendments will be effective upon publication in the Pennsylvania Bulletin.
B. Statutory Authority
Section 6(a) of the Auctioneer and Auction Licensing Act (act) (63 P. S. § 734.6(a)), requires the Board to establish fees by regulation. Section 6(b) of the act, requires the Board to increase fees to meet or exceed projected expenditures if the revenues raised by fees, fines and civil penalties are not sufficient to meet expenditures.
C. Purpose and Need for the Amendments
The current biennial renewal fees for auctioneer licensees have not been increased since 1978 when they were established in the Bureau of Professional and Occupational Affairs Fee Act (Fee Act) (63 P. S. § 1401-203). From FY 1985-86 to FY 1995-96, the Board's revenues were in sufficient balance to meet expenditures. At the end of FY 1995-96, the balance in the Board's operating account was $160.85. In FY 1996-97, the Board incurred a deficit of $110,401.62. The fee increases will recapture the $110,401.62 deficit carried forward from the 1995-97 biennial renewal period and prevent continuing deficits in future cycles.
D. Description of Amendments
Section 1.41 incorporates all fees and is conveniently located. Existing fees for the examination, auction license, auction company license and special auction license are relocated from §§ 1.23 and 1.26 and 63 P. S. § 1401-203(8), and reestablished in § 1.41.
The following chart compares the new and existing fees:
Category Proposed Current Examination $ 87 $87
(Moved from
49 Pa. Code § 1.23)License--Auctioneer $ 50 $50
63 P. S. § 1401.203(4)Biennial Renewal $200 $50
63 P. S. § 1401.203(6)License--Apprentice Auctioneer $ 30 $30 Biennial Renewal $100 $30
63 P. S. § 1401.203(7)License--Auction House and Auction Company $ 50 $50
(Moved from
49 Pa. Code § 1.26)Biennial Renewal $200 $50 Special License $200 $200
63 P. S. § 1401.203(8)E. Summary of Comments and Responses on Proposed Rulemaking
Notice of proposed rulemaking was published at 28 Pa.B. 1559 (March 28, 1998). Based on current fees, the Board is projected to have a deficit of $235,191.62 on June 30, 1998, $263,611.62 on June 30, 1999, and $409,211.62 on June 30, 2000. Renewal fees have not been raised since 1978.
Biennial revenues for the Board have remained relatively constant. In contrast, expenditures over the past 4 fiscal years have increased by an average of 12.41% per year and are expected to increase by at least 3% per year in continuing years. Because revenues were insufficient, expenditures accumulated in any fiscal year were transferred (or rolled) to the next fiscal year, beginning in FY 1994-95. Expenditures continued to accumulate and produce an increasing deficit in successive years. A fee increase was required to cover the deficit and produce sufficient revenue to support the Board's expenses.
The Board received comments from the House Professional Licensure Committee and the Independent Regulatory Review Commission (IRRC) requesting a breakdown of the individual expense categories and how they are projected to increase. In response to this request, the Board is providing a breakdown on cost center expenses and projected increases as an attachment to the Regulatory Analysis Form.
The Board anticipates that with the implementation of the increase it will not be necessary to increase renewal fees again for at least three biennial renewal periods. Increased revenues will result in the Board having a closing balance of $86,208.48 on June 30, 1999, and a deficit of $59,391.52 on June 30, 2000. The Board's closing balance will rise to $252,008.48 on June 30, 2001, and $96,408.48 on June 30, 2002.
IRRC recommended that §§ 1.23(b) and 1.26(a)(2) and (b), which refer to the ''required fee,'' be amended to include cross references to the schedule of fees in § 1.41. The Board has considered this recommendation, but believes that cross references in this instance are unnecessary due to the visibility of an entire section devoted to fees alone, entitled, schedule of fees.
F. Compliance with Executive Order 1996-1
In accordance with the requirements of Executive Order 1996-1 (February 6, 1996), in drafting and promulgating the amendments, the Board solicited input and suggestions from the regulated community by providing drafts to organizations and entities which represent auction professionals.
G. Fiscal Impact
The amendments will increase the biennial renewal fees for apprentice auctioneers, auctioneers, auction houses and auction companies in this Commonwealth. The cost per license is $75 annually. The increase in renewal fees should have no other fiscal impact on the private sector, the general public or political subdivisions.
H. Paperwork Requirements
The amendments will require the Board to alter some of its forms to reflect the new biennial renewal fees; however, it should not create additional paperwork for the private sector.
I. Sunset Date
The Board continuously monitors its regulations. Therefore no sunset date has been assigned.
J. Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on March 28, 1998, the Board submitted a copy of the notice of proposed rulemaking, published at 28 Pa.B. 1559 to IRRC and the Chairpersons of the House Professional Licensure Committee and Senate Committee on Consumer Protection and Professional Licensure for review and comment. In compliance with section 5(c) of the Regulatory Review Act, the Board also provided IRRC and the Committees with copies of all comments received, as well as other documentation.
In preparing these final-form regulations the Board has considered all comments received from IRRC, the Committees and the public.
These final-form regulations were deemed approved by the House and Senate Committees on October 26, 1998. IRRC met on November 5, 1998, and approved the final-form regulations in accordance with section 5(e) of the Regulatory Review Act.
K. Public Information
Interested persons may obtain information concerning the amendments by writing to Linda Dinger, Administrator, State Board of Auctioneer Examiners, P. O. Box 2649, Harrisburg, PA 17105-2649.
L. Findings
The Board finds that:
(1) Public notice of proposed rulemaking was given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and the regulations promulgated thereunder, 1 Pa. Code §§ 7.1 and 7.2.
(2) A public comment period was provided as required by law and all comments were considered.
(3) These amendments do not enlarge the purpose of proposed rulemaking published at 28 Pa.B. 1559.
(4) These amendments are necessary and appropriate for administration and enforcement of the authorizing acts identified in Part B of this Preamble.
M. Order
The Board, acting under its authorizing statutes, orders that:
(a) The regulations of the Board, 49 Pa. Code Chapter 1, are amended by §§ 1.23 and 1.26 and by adding § 1.41 to read as set forth at 28 Pa.B. 1559.
(b) The Board shall submit this order and 28 Pa.B. 1559 to the Office of General Counsel and to the Office of Attorney General as required by law.
(c) The Board shall certify this order and 28 Pa.B. 1559 and deposit them with the Legislative Reference Bureau as required by law.
(d) This order shall take effect on publication in the Pennsylvania Bulletin.
KENNETH A. GEYER,
Chairperson(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 28 Pa.B. 5818 (November 21, 1998).)
Fiscal Note: Fiscal Note 16A-642 remains valid for the final adoption of the subject regulations.
[Pa.B. Doc. No. 98-1942. Filed for public inspection November 27, 1998, 9:00 a.m.]
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