HB 1248-FN - AS INTRODUCED

AN ACT requiring the notification of renewal prior to expiration to holders of professional licenses issued by state agencies.

SPONSORS: Rep. Gilman, Graf 1

AN ACT requiring the notification of renewal prior to expiration to holders of professional licenses issued by state agencies.

AN ACT requiring the notification of renewal prior to expiration to holders of professional licenses issued by state agencies.

The Office of Legislative Budget Assistant has determined this bill will increase state expenditures by an indeterminable amount in FY 2003 and each year thereafter. State revenues may increase by an indeterminable amount in FY 2003 and each year thereafter. There will be no fiscal impact on county and local revenue or expenditures.

The Office of Legislative Budget Assistant states this bill would require state agencies that issue professional or occupational licenses to notify licensees at least 45 days prior to the expiration of their license. In addition, an agency shall not revoke, suspend, modify, withdraw, or refuse to renew a professional or occupational license unless such notice was given. The 45-day notice requirement shall not apply where a statutory provision requires any other specific period or time for the notice of renewal of an agency's licensees.

The Office conducted a survey of 59 such agencies in order to determine which entities would be affected by this legislation, as well as the potential fiscal impact of any changes they would have to make in order to comply with the proposed renewal notice provisions. The following are the results of the survey:

Number of

Agency Response Responses

No Fiscal Impact 41

Increase in Expenditures 12

Not Applicable 6

Total 59

41 entities state they will not be impacted because they either send out renewal notices in advance of the 45-day requirement or have a statutory provision requiring another specific period or time for notice. 12 agencies state this bill would have a fiscal impact because they either send out no notification at all or send out notices less than 45 days prior to expiration. 6 entities (Superior Court, Supreme Court, Department of Labor Registered Apprenticeship Program, Fire Standards & Training Commission, the Police Standards & Training Council, and State Entomologist Office) stated this bill would not apply to their departments due to either the statutory definition of agency (the term agency does not apply to the Judicial Branch) or the department does not issue what would be considered a professional or occupational license.

Agencies who do not currently meet the provisions of this bill state additional costs could include the addition of staff, associated benefits at 32% of salary, equipment, including computer system upgrades, postage, paper, as well as other associated costs. These agencies collectively issue over 140,000 licenses per year and the fiscal impact of this bill would vary by agency dependent on the number of licensees per agency, number of staff, and current administrative procedures used by the agencies in keeping track of licensees. Large agencies may have the capacity to handle such changes at little cost due to the number of staff and available resources, while smaller agencies may incur additional costs due to little or no staff and limited resources. The number of licenses the agency issues would also have an affect on the actual costs incurred. Since each agency will approach the provisions of this bill differently, dependent on the situation unique to them, the Office is unable to determine the exact fiscal impact of the bill at this time.

Some agencies stated the intent of this bill is unclear whereas there is no definition of "notice". This could result in additional costs depending on whether or not the agency is currently meeting this definition, and the potential changes that would result. Agencies also stated concern over the difficulty in keeping track of licensee addresses whereas they are not always notified when a licensee moves.

To the extent this bill impacts those boards or commissions that are required under RSA 332-G to collect revenues equivalent to 125% of their administrative expenses, there may be an indeterminable increase in state revenues to offset any expenses imposed by the passage of this bill.