RULES AND REGULATIONS
Title 49--PROFESSIONAL AND VOCATIONAL STANDARDS
STATE BOARD OF BARBER EXAMINERS
[49 PA. CODE CH. 3]
Fees
[31 Pa.B. 1225] The State Board of Barber Examiners (Board) adopts amendments to § 3.103 (relating to fees) by revising certain application fees to read as set forth in Annex A.
Notice of proposed rulemaking was published at 29 Pa.B. 5521 (October 23, 1999). Publication was followed by a 30-day public comment period during which the Board received no comments from the general public.
Following the close of the public comment period, the Board received comments from the House Professional Licensure Committee (HPLC) and the Independent Regulatory Review Commission (IRRC). The Senate Consumer Protection and Professional Licensure Committee (SCP/PLC) did not comment.
A. Effective date
The amendment will be effective upon publication in the Pennsylvania Bulletin.
B. Statutory Authority
The amendment is authorized under section 14 of the Barber License Law (63 P. S. § 564).
C. Response to IRRC and HPLC Comments
The HPLC questioned why the fees would be rounded up and are not the actual cost of services as estimated by the Board. IRRC requested that the Bureau of Professional and Occupational Standards (Bureau) and the Board: (1) itemize the overhead cost to be recouped by the fees; and (2) reexamine the method that is used to determine the administrative overhead factor for each fee.
IRRC commented that although the Bureau's method was reasonable, there was no assurance that the fees would recover the actual overhead cost because the charge was not related to the service, and because the charge was based on the actual rather than the projected expenditures. IRRC also commented that there was no certainty that the projected revenues would meet or exceed projected expenditures, as required under the boards' enabling statute.
In computing overhead charges, the boards and the Bureau include expenses resulting from service of support staff operations, equipment, technology initiatives or upgrades, leased office space and other sources not directly attributable to a specific board. Once determined, the Bureau's total administrative charge is apportioned to each board based upon that Board's share of the total active licensee population. In turn, the board's administrative charge is divided by the number of active licensees to calculate a ''per application'' charge which is added to direct personnel cost to establish the cost of processing. The administrative charge is consistently applied to every application regardless of how much time the staff spends processing the application.
This method of calculating administrative overhead to be apportioned to fees for services was first included in the biennial reconciliation of fees and expenses conducted in 1988-89. In accordance with the regulatory review, the method was approved by the Senate and House Standing Committees and IRRC as reasonable and consistent with the legislative intent of statutory provisions which require the Board to establish fees which meet or exceed expenses.
IRRC suggested that within each Board, the administrative charge should be determined by the amount of time required to process each application. For example, an application requiring 1/2 hour of processing time would pay one-half as much overhead charge as an application requiring 1 hour of processing time. The Bureau concurs with IRRC that by adopting this methodology the Bureau and the boards would more nearly and accurately accomplish their objective of setting fees that cover the cost of the service. Therefore, in accordance with IRRC's suggestions, the Bureau conducted a test to compare the resulting overhead charges obtained by applying IRRC suggested time factor versus the current method.
This review of the boards' operation showed that approximately 25% of staff time was devoted to providing services described in the regulations. The current method recouped 22% to 28% of the administrative overhead charges versus the 25% recouped using a ratio-based time factor. However, when the time factor is combined with the licensing population for each board, the resulting fees vary widely even though different licensees may receive the same services. For example, using the time-factor method to issue a verification of licensure would cost $34.58 for a landscape architect as compared with a cost of $10.18 for a cosmetologist. Conversely, under the Bureau method the administrative overhead charge of $9.76 represents the cost of processing a verification application for all licensees in the Bureau. Also, the Bureau found that employing a time factor in the computation of administrative overhead would result in a different amount of overhead charge being made for each fee proposed.
With regard to IRRC's suggestions concerning projected versus actual expenses, the boards note that the computation of projected expenditures based on amounts actually expended has been the basis for biennial reconciliations for the past 10 years. During these 5 biennial cycles, the experience of both the boards and the Bureau has been that established and verifiable data can be substantiated by collective bargaining agreements, pay scales and cost benefit factors. This method has provided a reliable basis for fees. Also, the fees are kept at a minimum for licensees, but appear adequate to sustain the operations of the boards over an extended period. Similarly, accounting, recordkeeping and swift processing of applications, renewals and other fees were the primary basis for ''rounding up'' the actual costs to establish a fee. This rounding up process has in effect resulted in the necessary but minimal cushion or surplus to accommodate unexpected needs and expenditures.
For these reasons, the Board has not made changes in the method by which it allocates administrative expenditures and the resulting fees will remain as proposed.
The HPLC noted that there was a significant increase in expenditures from 1996-97 to 1997-98 and has requested an explanation for the increase and an itemized list of income and expenditures for the fiscal years listed on the Regulatory Analysis Form.
The itemized expenditures are as follows:
FY96-97 FY97-98 Actual Actual FY98-99 Cost Center Expenditures Expenditures Budgeted BPOA Administration 28,881.63 13,349.64 21,000.00 Commissioner's Office 11,236.16 12,080.79 13,000.00 Law Enforcement (BEI) 101,618.00 160,027.52 154,000.00 Board Member Expenses 27,529.36 25,287.34 23,000.00 Test Administration 10.00 0.17 20.00 Hearing Expenses 7,815.79 5,789.35 5,000.00 Central Support Services 34,076.99 35,280.39 41,500.00 Board Administration 27,742.23 39,976.71 30,000.00 Public Information Office 1,293.21 2,050.96 2,000.00 Legislative & Regulatory Analysis 601.79 832.35 1,000.00 Legal Office 72,974.54 53,148.87 54,480.00 Rolled Expenditures 1,643.74 (461.73) 0.00 TOTAL BOARD COSTS: 315,423.44 347,362.36 345,000.00
FY96-97 FY97-98 FY98-99 Actual Actual Actual Revenue Source Revenue Revenue Revenue Renewals 36,862.00 687,075.45 51,738.79 Applications 13,465.00 19,811.00 10,990.00 Letters of Good Standing/Certifications 696.00 745.00 570.00 Changes 35.00 0.00 0.00 Fines 1,700.00 1,385.00 2,800.00 Act 48 2,504.00 5,255.00 7,900.00 TOTAL REVENUE: 55,262.00 714,271.45 73,998.79
As the chart shows, the major increase in expenditures was in law enforcement. This increase was due to an accounting change that more accurately reflected the time spent by inspectors and investigators as they worked on particular board-related activity. The prior time keeping method was based on an average amount of time spent for inspections rather than the actual time.
Both the HPLC and IRRC questioned the need to increase the fee for application of licensure of barber schools from $100 to $280 and why it would be necessary for the Board to take a 1/2 hour of time to discuss and vote on an application.
The Board notes that this fee has not changed since at least 1986. The large increase is due partly to the increased costs for the Bureau of Enforcement and Investigation (BEI) and partly because of a change in procedure. Originally, the application was not presented to the Board until after the inspection and other reviews were completed. Consequently, if the basic requirements were not met, the Board wasted time discussing an application for a school that might not qualify for licensure. Under the new procedure, the Board reviews the qualifications prior to the inspection so that any deficiencies are communicated prior to the inspection. While the fee increase is substantial, it is not as large as it would have been under the old review procedure.
Finally, the Board deletes from final rulemaking a new fee for certification of examination scores. This fee was questioned by the HPLC. Upon review of staff activities, it was determined that certification of scores is not required.
The HPLC also noted a typographical error on the fee report form for application of barber school. A corrected fee report form reflecting the $280 fee is attached to this final-form rulemaking package.
D. Compliance with Executive Order 1996-1
The Board reviewed this rulemaking and considered its purpose and likely impact upon the public and the regulated population under the directives of Executive Order 1996-1, Regulatory Review and Promulgation. The final-form regulations address a compelling public interest as described in this Preamble and otherwise complies with Executive Order 1996-1.
E. Fiscal Impact and Paperwork Requirements
The amendment will have no adverse fiscal impact on the Commonwealth or its political subdivisions. The fees will have a modest fiscal impact on those members of the private sector who apply for services from the Board. The amendments will impose no additional paperwork requirements upon the Commonwealth, political subdivisions or the private sector.
F. Sunset Date
The Board continuously monitors the cost effectiveness of its regulations. Therefore, no sunset date has been assigned.
G. Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), the Board submitted a copy of the notice of proposed rulemaking, published at 29 Pa.B. 5521 to IRRC and the Chairpersons of the House Professional Licensure Committee and the Senate Consumer Protection and Professional Licensure Committee.
In preparing this final-form regulation, the Board has considered the comments received from the Committees, IRRC and the public.
Under section 5.1(d) of the Regulatory Review Act (71 P. S. § 745.5a(d)), this final-form regulation was approved by the HPLC on November 13, 2000, and deemed approved by the SCP/PLC on November 20, 2000. IRRC met on December 14, 2000, and approved the final-form regulation in accordance with section 5.1(e) of the Regulatory Review Act.
Further Information
Individuals who need information about the regulation may contact Sara Sulpizio, Administrative Assistant, State Board of Barber Examiners, P. O. Box 2649, Harrisburg, PA 17105- 2649, (717) 783-3402.
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 at 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) This amendment does not enlarge the purpose of proposed rulemaking published at 29 Pa.B. 5521.
(4) This amendment is necessary and appropriate for administration and enforcement of the Board's authorizing statute.
Order
The Board orders that:
(a) The regulations of the Board, 49 Pa. Code Chapter 3, are amended by amending § 3.103 to read as set forth in Annex A.
(b) The Board shall submit a copy of this order and Annex A to the Office of Attorney General and the Office of General Counsel for approval as required by law.
(c) The Board shall certify this order and Annex A and shall deposit them with the Legislative Reference Bureau as required by law.
(d) The amendment shall take effect immediately upon publication in the Pennsylvania Bulletin.
RICHARD SCIORILLO,
Chairperson(Editor's Note: For the text of the order of the Independent Regulatory Review Commission, relating to this document, see 30 Pa.B. 6964 (December 30, 2000).)
Fiscal Note: Fiscal Note 16A-422 remains valid for the final adoption of the subject regulation.
Annex A
TITLE 49. PROFESSIONAL AND VOCATIONAL STANDARDS
PART I. DEPARTMENT OF STATE
Subpart A. PROFESSIONAL AND OCCUPATIONAL AFFAIRS
CHAPTER 3. STATE BOARD OF BARBER EXAMINERS § 3.103. Fees.
The schedule of fees charged by the Board is as follows:
Licensing examination for barber--complete $87 Licensing examination for barber--practical only $87 Licensing examination for barber--theory only $87 Licensing examination for barber--endorsement candidate $87 Licensing examination for barber teacher--complete $87 Licensing examination for barber teacher--practical only $87 Licensing examination for barber teacher--theory only $87 Licensing examination for barber shop manager $87 Licensure of barber, barber shop manager or barber teacher
$10 Licensure of barber by reciprocity
$20 Licensure of barber shop
$55 Licensure of barber school
$280 Biennial renewal of barber license $42 Biennial renewal of barber shop manager license $62 Biennial renewal of barber teacher license $67 Biennial renewal of barber shop license $72 Biennial renewal of barber school license $112 Change in barber shop--inspection required
$55 Change in barber shop--no inspection required $15 Reinspection after first fail--new or change (shop or school) $40 Verify license/permit/registration $15
[Pa.B. Doc. No. 01-346. Filed for public inspection March 2, 2001, 9:00 a.m.]
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