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09.23.04.03 - Board for Professional Engineers - Pending Regulations

 

PROPOSED ACTION ON REGULATIONS
MARYLAND REGISTER, VOLUME 40, ISSUE 19
FRIDAY, SEPTEMBER 20, 2013

Subtitle 23 BOARD FOR PROFESSIONAL ENGINEERS

09.23.04 Fees

Authority: Business Regulation Article, §§2-106, 2-106.1 and 2-106.2; Business Occupations and Professions Article, §§14-101, 14-208, 14-209, 14-311, 14-312, 14-314, and 14-316; Annotated Code of Maryland

Notice of Proposed Action
[13-285-P]

The Board for Professional Engineers proposes to amend Regulation .03 under COMAR 09.23.04 Fees. This action was considered by the Board at a public meeting held on February 14, 2013, notice of which was published in 40:2 Md. R. 177 (January 25, 2013), pursuant to State Government Article, §10-506(c), Annotated Code of Maryland.

Statement of Purpose

The purpose of this action is to increase license fees previously set by the Board in 2003 and then decreased in 2007. Pursuant to the authority set forth in Business Regulation Article, §§2-106, 2-106.1, and 2-106.2, Annotated Code of Maryland, the Maryland design boards, including the Board for Professional Engineers, may set various fees, including a license fee, in order to cover the actual documented direct and indirect costs of fulfilling their statutory and regulatory duties. The law provides that the Secretary must calculate these costs on an annual basis and provide them to the design boards for the purposes of fee-setting. Based on the current levels of revenues and expenses, as certified to the design boards by the Department, it has become evident to the design boards that an increase in license fees is necessary in order for the boards to strive to meet their statutory obligations. The need for increase in fees is a result of a number of factors, including, but not limited to, increase in personnel costs, as well as in fixed and indirect costs. The statute governing the design boards’ special fund limits a fee increase to 12.5 percent annually. As a result, the design boards, both individually and as members of the design boards special fund cluster, decided to uniformly increase their applicable license/certificate fees by 12.5 percent.

Comparison to Federal Standards

There is no corresponding federal standard to this proposed action.

Estimate of Economic Impact

I. Summary of Economic Impact. There are currently 18,000 licensed engineers. Due to staggered license renewals, 9,000 licensees are expected to renew their licenses annually. In addition, an average of 1,000 individuals become licensed every year. Based on the assumption that these numbers remain constant, the State Occupational and Professional Design Boards’ Fund will receive additional revenues totaling $85,000.

 
Revenue (R+/R-)
 
II. Types of Economic
Impact.
Expenditure
(E+/E-)
Magnitude

A. On issuing agency:
 State Occupational and Professional Design Boards

(R+)

$85,000
 
B. On other State agencies: NONE
 
C. On local governments: NONE
Benefit (+)
Cost (-)
Magnitude
D. On regulated industries or trade groups:
 Applicants/Licensees


(-)


$8.50 per applicant or licensee

E. On other industries or trade groups: NONE  
 
F. Direct and indirect effects on public: NONE
 

III. Assumptions. (Identified by Impact Letter and Number from Section II.)

A. Assuming 9,000, or 50 percent of current licensees, renew their licenses in the first year, and 1,000 individuals receive new licenses, revenues totaling $85,000 (10,000 x $8.50) will be received by the Fund.

D. Applicants for new licenses and current licensees are presently paying $68 for a 2-year license. The proposed amendment will raise the fee to $76.50, an increase of $8.50.

Economic Impact on Small Businesses

The proposed action has minimal or no economic impact on small businesses.

Impact on Individuals with Disabilities

The proposed action has no impact on individuals with disabilities.

Opportunity for Public Comment

Comments may be sent to Pamela J. Edwards, Executive Director, Professional Licensing Boards, 500 N. Calvert Street, Room 308, Baltimore, MD 21202, or call 410-230-6262, or email to pamedwards@dllr.state.md.us, or fax to 410-333-0021. Comments will be accepted through October 21, 2013. A public hearing will be held October 10, 2013, 11 a.m., at 500 N. Calvert Street, Third Floor Conference Room, Baltimore, MD 21202, to hear comments regarding the licensee fee increase.

Open Meeting

Final action on the proposal will be considered by the Board for Professional Engineers during a public meeting to be held on November 14, 2013, at 500 N. Calvert Street, Third Floor Conference Room, Baltimore, MD 21202.

.03 Fees and Costs.
A. The Secretary and the design boards have agreed to average their direct and indirect costs, based on the calculation of costs performed by the Secretary in consultation with the design boards. Based on these calculations, the Board sets the following fees:
(1) License fee—[$68] $76.50;
(2)—(8) (text unchanged)
B.—E. (text unchanged)

HOWARD C. HARCLERODE II
Chairman
State Board for Professional Engineers