PROPOSED RULEMAKING
STATE BOARD OF BARBER EXAMINERS
[ 49 PA. CODE CH. 3 ]
Fees
[51 Pa.B. 3342]
[Saturday, June 19, 2021]The State Board of Barber Examiners (Board) and the Commissioner of the Bureau of Professional and Occupational Affairs (Commissioner) propose to amend Chapter 3 (relating to State Board of Barber Examiners) by amending § 3.103 (relating to fees) to read as set forth in Annex A.
Effective Date
This proposed rulemaking will be effective upon final-form publication in the Pennsylvania Bulletin. The graduated increases for application fees will be implemented on a 2-fiscal year (FY) basis—on July 1, 2022, and July 1, 2024.
The increased biennial renewal fees will be implemented beginning with the May 1, 2022—April 30, 2024, biennial renewal period. Thereafter, the subsequent graduated increases will be implemented with the biennial renewal for May 1, 2024—April 30, 2026.
Statutory Authority
Under section 14(b) of the Barbers' License Law (act) (63 P.S. § 564(b)), all fees required under the act shall be fixed by the Board by regulation and shall be subject to the Regulatory Review Act (71 P.S. §§ 745.1—745.14). Section 14(b) of the act further provides that ''[i]f the revenues raised by fees, fines and civil penalties imposed pursuant to this act are not sufficient to meet expenditures over a two-year period, the board shall increase those fees by regulation so that the projected revenues will meet or exceed projected expenditures.'' Section 15-A.4(b) of the act (63 P.S. § 566.4(b)), states, ''[t]he board shall have power to make such other rules and regulations. . .as shall be deemed necessary to carry out the provisions of this act.''
Regarding barber, barber shop manager and barber teacher application fees, section 3(a), (c) and (d) of the act (63 P.S. § 553(a), (c) and (d)), requires applicants to submit an application in a form as the Board prescribes and states in pertinent part, ''. . .[a]t the time of filing the application and accompanying notarized statements, the applicant shall pay to the department an examination fee to be determined by regulation. . .'' Regarding barber by reciprocity application fees, section 4(a) of the act (63 P.S. § 554(a)), states, ''[a] barber currently licensed in another state with substantially the same licensure requirements as Pennsylvania shall be granted a Pennsylvania barber license without examination upon payment of the fee.'' Regarding barber shop application fees, section 13(b) of the act (63 P.S. § 563(b)), states, ''[a] licensed barber over sixty-five years of age may operate a one chair barber shop located in a senior citizen center which is eligible for funding from the State Lottery Fund. . . . Shops licensed under this subsection shall be subject to the same fees imposed pursuant to this act for the issuance and biennial renewal of a barber shop license.'' Regarding barber school application fees, section 12(a) of the act (63 P.S. § 562(a)), states in pertinent part, ''[b]oth the fee for registration of each barber school and the annual renewal fee shall be determined by regulation.'' Under section 11 of the act (63 P.S. § 561), ''[t]he department shall keep a record of the names and addresses of the barber shops to which, and the names of all persons to whom, licenses are issued under this act. The department shall furnish copies of such records to the public upon request and may establish a reasonable fee for such copies which shall not exceed the cost of reproduction.'' Regarding biennial renewal fees, section 8(a) of the act (63 P.S. § 558(a)), states, ''[t]he license shall be renewed on or before the thirtieth day of April, 1962, for a period of two years and biennially thereafter, and holders of said licenses shall pay to the department a fee to be determined by regulation for renewal.''
The Commissioner is appointed by the Governor and has a number of powers and duties. Specifically, under section 810(a)(7) of The Administrative Code of 1929 (71 P.S. § 279.1(a)(7)), the Commissioner has the power and duty, ''[u]nless otherwise provided by law, to fix the fees to be charged by the several professional and occupational examining boards within the department.''
Background and Purpose of Amendment
Under section 14 of the act, the Board is required to support its operations from the revenue it generates from fees, fines and civil penalties. The act further provides that the Board shall increase fees when expenditures outpace revenue. The majority of general operating expenses of the Board are borne by the licensee population through revenue generated by the biennial renewal of licenses. A small percentage of its revenue comes from application fees, fines and civil penalties. Board expenses are the result of direct charges, timesheet-based charges and licensee-based charges. On an annual basis, the Board reviews its fiscal status and receives an annual report from the Department of State's Bureau of Finance and Operations (BFO) regarding the Board's income and expenses.
At a public meeting on April 15, 2019, the BFO and the Board reviewed the Board's application fees and determined that the existing fee schedule did not reflect the costs of the services provided by the Board. The BFO presented to the Board its annual report reflecting revenues for FYs 2016-2017, 2017-2018 and 2018-2019. The BFO explained that there was a negative fund balance because Board expenses were exceeding revenue while the licensee population was declining. The Board, with the encouragement and support of the Bureau, determined that a re-evaluation of all application fees was appropriate, especially given that the Board had not updated its fees since 2014.
During the August 19, 2019, regularly scheduled Board meeting, the BFO presented to the Board actual revenues for FY 2017-2018 and reviewed projected revenues from FY 2018-2019 through FY 2024-2025. The BFO discussed projections for graduated increases of application and biennial renewal fees through FY 2024-2025 to ensure positive fund balance. The sporadic increases and decreases in the licensee population were taken into account when projecting incremental fee increases. The BFO recommended that the Board consider an increase in biennial renewal fees and application fees for FY 2021-2022.
During the January 27, 2020, regularly scheduled Board meeting, the BFO presented its annual report of the Board's income and expenses with updated data. The current BFO fiscal report shows that in FY 2018-2019, the Board incurred $656,544.64 in expenditures and generated only $159,127.33 in revenue, with a remaining deficit balance of ($335,744). In FY 2019-2020, the Board incurred $783,291.30 in expenditures and generated $939,529.40 in revenue, with a remaining deficit balance of ($179,505.90). For FY 2020-2021, it was estimated that the Board would incur approximately $800,000 in expenditures and generate only $400,000 in revenue, with a remaining deficit balance of ($579,595.90). For FYs 2021-2022 and 2022-2023, the Board is projected to incur $1.497 million in expenditures and generate $1.404 million in revenue, with a deficit balance of ($180,505,90) at the end of FY 2021-2022 and a deficit balance of ($672,505.90) in FY 2022-2023. Based upon the information presented by the BFO, the revenues generated by fees, fines and civil penalties imposed in accordance with the provisions of the act were not sufficient to meet expenditures over a 2-year period. The Board voted to adopt the proposed graduated fee increases for application and biennial renewal fees contained in the BFO's report. An exposure draft was released to stakeholders and interested parties to solicit written comments and no comments were received.
Description of Proposed Amendments
The Board proposes to amend § 3.103 to set forth graduated fee schedules for application fees and biennial renewal fees. In doing so, for clarity, the Board proposes to add a new undesignated center heading entitled ''Fees.'' The Board proposes to delete the existing fee schedule and add a new graduated fee schedule. New subsection (a) lists the graduated schedule of fees for applications for licensure, certification, registration and services with corresponding fees and effective dates. Application fees not associated with a profession or type of facility are set forth under a miscellaneous fee category. The Board proposes to add subsection (b), which lists the schedule of fees and corresponding effective dates for biennial license renewal.
Under proposed § 3.103(a), application fees would increase on a graduated level for the licenses and registrations of barbers, barber shop managers, barber teachers, barber shops and barber schools; miscellaneous application fees including licensure of barber by reciprocity, change in barber shop—inspection required, change in barber shop—no inspection required, reinspection after first fail—new or change (shop or school), verification of license/permit/registration and certification of student status or student training hours. The proposed application fees are increased on a graduated basis so that the application fees collected during each biennium reflect the anticipated costs of processing applications for that biennium. These fees are designed to cover the cost to process applications and are borne by individual applicants. Actual cost calculations for application fees are based upon the following formula:
number of minutes to perform the function
×
pay rate for the classification of the personnel performing the function
+
a proportionate share of administrative overhead
Proposed application fee increases effective July 1, 2022, and July 1, 2024, are based on time study reports created within the Bureau giving each step in the process and the amount of time it takes to process one application. That amount is multiplied by the anticipated application requests for 1 year (times two since the increases are biennial). Application fees are almost entirely dependent upon personnel-related costs.
The proposed biennial renewal fees would increase on a graduated basis for barber, barber shop manager, barber teacher, barber shop and barber school effective May 1, 2022, and May 1, 2024. The graduated biennial renewal fee schedule is set forth under proposed § 3.103(b) which lists all renewal fees and corresponding effective dates.
The new fee structure is projected to produce biennial revenues of $1,668,000 in FYs 2021-2022 through 2022-2023, which will allow the Board to meet or exceed its projected expenditures of $1,497,000 and reduce its $579,505.90 deficit. The biennial revenues of $1,952,000 in FYs 2023-2024 through 2024-2025 will allow the Board to meet or exceed its projected expenditures of $1,542,000, which will further reduce the Board's deficit.
Proposed Application Fees
As set forth as follows and in § 3.103(a), the proposed graduated increases will impact applicants as follows:
Barber
The Board receives approximately 434 barber applications per year. The graduated application fee increases will generate additional revenue as follows:
FY 2022-2023: The fee increase from $10 to $30 will generate an additional $8,680 in application fees.
FY 2023-2024: The fee increase will continue to generate an additional $8,680 in application fees.
FY 2024-2025: The fee increase from $30 to $33 will generate an additional $1,302 in application fees.
Barber Shop Manager
The Board receives approximately 100 barber shop manager applications per year. The graduated application fee increases will generate additional revenue as follows:
FY 2022-2023: The fee increase from $10 to $30 will generate an additional $2,000 in application fees.
FY 2023-2024: The fee increase will continue to generate an additional $2,000 in application fees.
FY 2024-2025: The fee increase from $30 to $33 will generate an additional $300 in application fees.
Barber Teacher
The Board receives approximately 14 barber teacher applications per year. The graduated application fee increases will generate additional revenue as follows:
FY 2022-2023: The fee increase from $10 to $30 will generate an additional $280 in application fees.
FY 2023-2024: The fee increase will continue to generate an additional $280 in application fees.
FY 2024-2025: The fee increase from $30 to $33 will generate an additional $42 in application fees.
Barber Shop
The Board receives approximately 235 barber shop applications per year. The graduated application fee increases will generate additional revenue as follows:
FY 2022-2023: The fee increase from $110 to $145 will generate an additional $8,225 in application fees.
FY 2023-2024: The fee increase will continue to generate an additional $8,225 in application fees.
FY 2024-2025: The fee increase from $145 to $160 will generate an additional $3,525 in application fees.
Barber School
The Board receives approximately five barber school applications per year. The graduated application fee increases will generate additional revenue as follows:
FY 2022-2023: The fee increase from $140 to $170 will generate an additional $150 in application fees.
FY 2023-2024: The fee increase will continue to generate an additional $150 in application fees.
FY 2024-2025: The fee increase from $170 to $185 will generate an additional $75 in application fees.
Licensure of Barber by Reciprocity
The Board receives approximately 165 licensure of barber by reciprocity applications per year. The graduated application fee increases will generate additional revenue as follows:
FY 2022-2023: The fee increase from $55 to $60 will generate an additional $825 in application fees.
FY 2023-2024: The fee increase will continue to generate an additional $825 in application fees.
FY 2024-2025: The fee increase from $60 to $65 will generate an additional $825 in application fees.
Change in Barber Shop—inspection required
The Board receives approximately ten applications for Change in Barber Shop—inspection required, per year. The graduated application fee increases will generate additional revenue as follows:
FY 2022-2023: The fee increase from $90 to $115 will generate an additional $250 in application fees.
FY 2023-2024: The fee increase will continue to generate an additional $250 in application fees.
FY 2024-2025: The fee increase from $115 to $125 will generate an additional $100 in application fees.
Change in Barber Shop—no inspection required
The Board receives approximately 40 applications for Change in Barber Shop—no inspection required, per year. The graduated application fee increases will generate additional revenue as follows:
FY 2022-2023: The fee increase from $40 to $45 will generate an additional $200 in application fees.
FY 2023-2024: The fee increase will continue to generate an additional $200 in application fees.
FY 2024-2025: The fee increase from $45 to $50 will generate an additional $200 in application fees.
Reinspection after first fail—new or change (shop or school)
The Board receives approximately five reinspection after first fail (barber shop or school) applications per year. An adjustment of the fees for this category of applications will result in the following revenue changes:
FY 2022-2023: The fee decrease from $90 to $75 will generate a decrease of $75 in application fees.
FY 2023-2024: The fee decrease will continue to generate a decrease of $75 in application fees.
FY 2024-2025: The fee increase from $75 to $82 will generate an increase of $35 in application fees.
Verification of license/permit/registration
The Board receives approximately 100 verification of license/permit/registration applications per year. The graduated application fee increases will generate additional revenue as follows:
FY 2022-2023: The fee increase from $15 to $20 will generate an additional $500 in application fees.
FY 2023-2024: The fee increase will continue to generate an additional $500 in application fees.
FY 2024-2025: The fee increase from $20 to $22 will generate an additional $200 in application fees.
Certification of Student Status or Student Training Hours
The Board receives approximately 12 certification of student status or student training hours applications per year. The graduated application fee increases will generate revenue as follows:
FY 2022-2023: The fee increase from $30 to $35 will generate an additional $60 in application fees.
FY 2023-2024: The fee increase will continue to generate an additional $60 in application fees.
FY 2024-2025: The fee increase from $35 to $40 will generate an additional $60 in application fees.
Proposed Biennial Renewal Fees
As set forth as follows and in § 3.103(b), the proposed graduated increases will impact licensees, registrants and certificate holders:
Barber
There are approximately 3,188 barbers who are subject to the current biennial renewal fee of $109; these licensees will be impacted by the proposed biennial renewal fee increases. Using past history as a guide, the BFO estimates that around 432 barbers will stop renewing their licenses in the May 2022 renewal, resulting in 2,756 barbers. The graduated biennial renewal fee increases will generate additional revenue as follows:
FY 2021-2022 and FY 2022-2023: The fee increase from $109 to $160 will generate an additional $140,556 in revenue.
FY 2023-2024 and FY 2024-2025: The fee increase from $160 to $184 will generate an additional $66,144 in revenue.
Barber Shop Manager
There are approximately 2,462 barber managers who are subject to the current biennial renewal fee of $161; these licensees will be impacted by the proposed biennial renewal fee increases. Using past history as a guide, the BFO estimates that around 363 barber shop managers will stop renewing their licenses in the May 2022 re-newal, resulting in 2,099 barber shop managers. The graduated biennial renewal fee increases will generate additional revenue as follows:
FY 2021-2022 and FY 2022-2023: The fee increase from $161 to $215 will generate an additional $113,346 in revenue.
FY 2023-2024 and FY 2024-2025: The fee increase from $215 to $260 will generate an additional $94,455 in revenue.
Barber Teacher
There are approximately 275 barber teachers who are subject to the current biennial renewal fee of $174; these licensees will be impacted by the proposed biennial renewal fee increases. Using past history as a guide, the BFO estimates that around 19 barber teachers will stop renewing their licenses in the May 2022 renewal, resulting in 256 barber teachers. The graduated biennial renewal fee increases will generate additional revenue as follows:
FY 2021-2022 and FY 2022-2023: The fee increase from $174 to $225 will generate an additional $13,056 in revenue.
FY 2023-2024 and FY 2024-2025: The fee increase from $225 to $270 will generate an additional $11,520 in revenue.
Barber Shop
There are approximately 2,098 barber shops that are subject to the current biennial renewal fee of $187; these licensees will be impacted by the proposed biennial renewal fee increases. Using past history as a guide, the BFO estimates that around 245 barber shops will stop renewing their licenses in the May 2022 renewal, resulting in 1,853 barber shops. The graduated biennial renewal fee increases will generate additional revenue as follows:
FY 2021-2022 and FY 2022-2023: The fee increase from $187 to $235 will generate an additional $88,944 in revenue.
FY 2023-2024 and FY 2024-2025: The fee increase from $235 to $287 will generate an additional $96,356 in revenue.
Barber School
There are approximately 42 barber schools that are subject to the current biennial renewal fee of $291; these licensees will be impacted by the proposed biennial renewal fee increases. Using past history as a guide, the BFO does not anticipate a decrease in the number of renewals in May 2022. The graduated biennial renewal fee increases will generate additional revenue as follows:
FY 2021-2022 and FY 2022-2023: The fee increase from $291 to $340 will generate an additional $2,058 in revenue.
FY 2023-2024 and FY 2024-2025: The fee increase from $340 to $391 will generate an additional $2,142 in revenue.
At the end of FY 2020-2021, the Board is projected to have a deficit of ($579,505.90). The new fee structure is projected to produce additional revenues of $379,055 in FY 2021-2022 through FY 2022-2023, allowing the Board to begin to reduce the deficit spending. In FY 2023-2024 through FY 2024-2025, the new fee structure is projected to produce additional biennial revenues of $298,376. These revenues will have a positive projected remaining balance of $1,494.10 in FY 2024-2025. The biennial revenues previously listed assume a reduction in the barber, barber shop manager, barber teacher and barber shop licensee populations, beginning in FY 2021-2022; the barber school licensee population is expected to remain unchanged. Even assuming decreases in the licensee population, as noted previously, the revenues from the new fee structure will still have a positive projected remaining balance. Therefore, the new fee structure is projected to allow the Board to meet or exceed its projected expenditures and will put the Board back on firm financial ground.
Fiscal Impact and Paperwork Requirements
The proposed amendments will increase application and biennial renewal fees on a graduated basis. All applicants, licensees and registrants will be required to comply with the regulation. The fees may be paid by applicants, licensees or registrants or may be paid by their employers, should their employers choose to pay these fees. The proposed regulation should have no other fiscal impact on the private sector, the general public or political subdivisions of the Commonwealth.
Approximately 1,120 applicants will be impacted annually by the increased application fees. Specifically, the number of applicants affected are as follows: 434 barbers, 100 barber shop managers, 14 barber teachers, 235 barber shops, 5 barber schools, 165 licensure of barber by reciprocity, 10 barber shop change (with inspection), 40 barber shop change (without inspection), 5 reinspection after first fail, 100 verification of license/permit/registration and 12 certification of barber school hours.
Based upon the graduated application fee increases, the total economic impact per fiscal year is as follows:
FY 2022-2023: $21,095
FY 2023-2024: $21,095
FY 2024-2025: $ 6,664
Total: $48,854There are approximately 8,065 individuals who possess current licenses and registrations issued by the Board who will be required to pay more to renew their licenses and registrations. Factoring in a possible reduction of 1,059 licensees, the remaining 7,006 currently licensed individuals will be affected as follows:
Based upon the previously listed biennial renewal fee increases, the economic impact is as follows:
FY 2021-2022 and FY 2022-2023: $ 357,960
FY 2023-2024 and FY 2024-2025: $ 270,617
Total: $ 628,577Thus, the total economic impact to applicants, licensees, registrants or employers, if employers choose to pay application or licensing fees, is $677,431. This amount reflects the economic impact that will occur between FY 2021-2022 and FY 2024-2025.
This proposed rulemaking will require the Board to revise its printed and online application forms. The amendments will not create additional paperwork for the regulated community or for the private sector.
Sunset Date
The Board continuously monitors the effectiveness of its regulations. Therefore, no sunset date has been assigned. Additionally, the BFO provides the Board with an annual report detailing the Board's financial condition. In this way, the Board continuously monitors the adequacy of its fee schedule.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P.S. § 745.5(a)), on June 1, 2021, 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 (SCP/PLC) and the House Professional Licensure Committee (HPLC). 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 from the close of the public comment period. The comments, recommendations or objections must specify the regulatory review criteria that 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.
Public Comment
Interested persons are invited to submit written comments, recommendations or objections regarding this proposed rulemaking to the Board Counsel, Department of State, State Board of Barber Examiners, P.O. Box 69523, Harrisburg, PA 17106-9523, RA-STRegulatoryCounsel@pa.gov within 30 days following publication of this proposed rulemaking in the Pennsylvania Bulletin. Reference Regulation No. 16A-4211 (Fees) when submitting comments.
DOMINIC L. MUNIZ,
Chairperson, State Board of Barber ExaminersK. KALONJI JOHNSON,
Commissioner, Bureau of Professional and
Occupational AffairsFiscal Note: 16A-4211. 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 3. STATE BOARD OF
BARBER EXAMINERS
FEES § 3.103. Fees.
[The schedule of fees charged by the Board is as follows:
Licensure of barber, barber shop manager or
barber teacher . . . . $10Licensure of barber by reciprocity . . . . $55
Licensure of barber shop . . . . $110
Licensure of barber school . . . . $140
Biennial renewal of barber license . . . . $109
Biennial renewal of barber shop manager
license . . . . $161Biennial renewal of barber teacher license . . . . $174
Biennial renewal of barber shop license . . . . $187
Biennial renewal of barber school license . . . . $291
Change in barber shop—inspection required . . . . $90
Change in barber shop—no inspection required . . . . $40
Reinspection after first fail—new or change
(shop or school) . . . . $90Verify license/permit/registration . . . . $15
Certification of student status or student
training hours . . . . $30](a) An applicant for a license, certificate, registration or service shall pay the following fees at the time of application:
Effective
July 1, 2022
Effective
July 1, 2024(1) Initial Application for Licensure Barber $10 $30 $33 Barber Shop Manager $10
$30
$33
Barber Teacher $10
$30
$33
Barber Shop $110
$145
$160 Barber School $140
$170
$185
(2) Miscellaneous Licensure of barber by reciprocity $55 $60 $65 Change in Barber Shop—Inspection required $90 $115 $125 Change in Barber Shop—no inspection required $40 $45 $50 Reinspection after first fail—new or change (shop or school) $90 $75 $82 Verify license/permit/registration $15 $20 $22 Certification of student status or student training hours $30 $35 $40 (b) An applicant for biennial renewal of a license, certificate or registration shall pay the following fees:
May 1, 2022—
April 30, 2024
Biennial
Renewal FeeMay 1, 2024—
April 30, 2026
Biennial
Renewal Fee and
thereafterBarber $109 $160 $184 Barber Shop Manager $161 $215 $260 Barber Teacher $174 $225 $270 Barber Shop $187 $235 $287 Barber School $291 $340 $391
[Pa.B. Doc. No. 21-950. Filed for public inspection June 18, 2021, 9:00 a.m.]
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