PROPOSED RULEMAKING
[49 PA. CODE CH. 13]
Renewal Fee
[37 Pa.B. 1868]
[Saturday, April 21, 2007]The State Board of Funeral Directors (Board) proposes to amend § 13.12 (relating to fees) to read as set forth in Annex A. The proposed rulemaking will raise the biennial renewal fee for licensed funeral directors and funeral establishments from $185 to $325.
Effective Date
The proposed rulemaking will be effective upon final-form publication in the Pennsylvania Bulletin. The increase in the biennial renewal fee will go into effect beginning with renewal for the February 1, 2008, through January 31, 2010, biennial renewal period.
Statutory Authority
This proposed rulemaking is authorized by section 18.1 of the Funeral Director Law (act) (63 P. S. § 479.18.1).
Background and Need for the Amendment
Section 18.1(a) of the act requires the Board to fix the fees for renewal of licenses by regulation and if the revenue generated by fees, fines and civil penalties is not sufficient to match expenditures over a 2-year period, the Board is required to increase those fees by regulation. Section 18.1(b) of the act requires the Board to increase fees when revenue raised by fees, fines and civil penalties are not sufficient to meet expenditures.
The Board's current biennial license renewal fee was established by regulation and took effect for the 2004-2006 biennial renewal period, the only increase since 1992. The Board raises virtually all its revenue through fees. The biennial license renewal fee is the most substantial revenue-generating fee of the fees charged by the Board.
At the Board's meeting on June 7, 2006, the Department of State's Revenue and Budget Offices presented a summary of the Board's actual revenues and expenses for Fiscal Year (FY) 2004-05 and projected revenues and expenses for FY 2005-06 through FY 2016-17. At the end of FY 2004-05, the Board had a deficit of $99,582. The Budget Office projects that, without an increase in the renewal fee, deficits will continue to grow, with an anticipated deficit of $684,119 at the end of FY 2008-09, an anticipated deficit of $1,212,119 at the end of FY 2010-11 and an anticipated deficit of $4,037,119 by the end of FY 2016-17.
For the Board's consideration, the Budget Office presented summaries for various increases in the renewal fee beginning with the 2008-10 renewal period. If the renewal fee were increased to $230, an increase of approximately 25%, the Budget Office projected continued deficits. Specifically, the Board would experience a deficit of $374,009 at the end of FY 2008-09, a deficit of $591,899 at the end of FY 2010-11 and a deficit of $1,002,789 at the end of FY 2012-13. The deficits would continue to grow to $2,486,569 at the end of FY 2016-17. Similarly, if the renewal fee were increased to $280, an increase of approximately 50%, the Budget Office projected a deficit of $46,159 at the end of FY 2008-09, a surplus of $63,801 at the end of FY 2010-11 and a deficit of $19,239 at the end of FY 2012-13. The deficits would continue to grow to $847,319 at the end of FY 2016-17.
If, however, the renewal fee were increased to $325, an increase of approximately 75%, the Budget Office projected a surplus of $249,906 at the end of FY 2008-09, a surplus of $653,931 at the end of FY 2010-11 and a surplus of $865,956 at the end of FY 2012-13. The surplus would then continually decrease to $628,006 at the end of FY 2016-17. If the renewal fee were increased to $370, an increase of approximately 100%, the Budget Office projected a surplus of $543,971 at the end of FY 2008-09 and a surplus of $1,244,061 at the end of FY 2010-11. The surplus would then continually increase to $2,103,331 at the end of FY 2016-17. After considering each of these options, the Board elected to increase the biennial renewal fee to $325, as the least restrictive means of eliminating the projected deficits and restoring the Board's fiscal integrity as required by section 18.1 of the act.
Description of the Proposed Amendments
Section 13.12 (relating to fees) will be amended to increase the biennial renewal fee from $185 to $325.
Fiscal Impact and Paperwork Requirements
The proposed rulemaking will increase the biennial renewal fee for funeral directors and funeral establishments in this Commonwealth, but, otherwise, should have no adverse fiscal impact on the Commonwealth, its political subdivisions or the private sector. The proposed rulemaking will impose no additional paperwork requirements upon the Commonwealth, its political subdivisions or the private sector.
Sunset Date
The Board continuously monitors the cost effectiveness of its regulations. Therefore, no sunset date has been assigned.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on April 11, 2007, the Board submitted a copy of this proposed rulemaking and a copy of a Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the Senate Consumer Protection and Professional Licensure Committee and the House Professional Licensure Committee. A copy of this material is available to the public upon request.
Under section 5(g) of the Regulatory Review Act, IRRC may convey any comments, recommendations or objections to the proposed rulemaking within 30 days of the close of the public comment period. The comments, recommendations or objections must specify the regulatory review criteria which have not been met. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the rulemaking, by the Board, the General Assembly and the Governor of comments, recommendations or objections raised.
Public Comment
Interested persons are invited to submit written comments, recommendations or objections regarding this proposed rulemaking to Michelle T. Smey, Board Administrator, State Board of Funeral Directors, P. O. Box 2649, Harrisburg, PA 17105-2649 within 30 days of publication of this proposed rulemaking in the Pennsylvania Bulletin. Reference No. 16A-4817 (Renewal Fee) when submitting comments.
ANTHONY SCARANTINO,
ChairpersonFiscal Note: 16A-4817. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 49. PROFESSIONAL AND VOCATIONAL STANDARDS
PART I. DEPARTMENT OF STATE
Subpart A. PROFESSIONAL AND OCCUPATIONAL AFFAIRS
CHAPTER 13. STATE BOARD OF FUNERAL DIRECTORS
LICENSURE § 13.12. Fees.
Following is the schedule of fees charged by the Board:
* * * * * Biennial renewal $[185] 325
* * * * *
[Pa.B. Doc. No. 07-685. Filed for public inspection April 20, 2007, 9:00 a.m.]
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