Economic Impact Statement

ECONOMIC IMPACT STATEMENT
K.A.R. 69-11-1

This regulation increases fees for cosmetology licensees and the establishments in which cosmetology services are provided.  Licensees and establishments are regulated by the Kansas Board of Cosmetology. 

The increased fees do not require a statute revision; therefore the increases may be accomplished through the administrative regulation process.  Additionally, none of the fees outlined have been increased since 1998.  This regulation is not mandated by federal law and is being proposed on a permanent basis. 

Establishment fees.  Currently the Board licenses approximately 3900 cosmetology related establishments which require an annual $30 renewal fee; each establishment license expires on June 30.  The Board proposes the annual fee be increased to $50. 

Practitioner licensure fees.  Implementation of this regulation would increase licensure renewals for cosmetology technicians, electrologists, estheticians and manicurists.  The biennial renewal fee increase will be $45.  Initial licensure application fees for electrologists, estheticians and manicurists will also increase to $45. 

The Board licenses over 25,000 individuals.  Of this number approximately 21,000 are licensed cosmetologists who also renew their practitioner license on a biennial basis.  The renewal fee for these licensees is $45; likewise initial cosmetology licensure applicants submit a $45 fee.  Although this fee regulation revision would not impact licensed cosmetologists the fee revision would provide consistency in that all cosmetology professional licensure fees would be identical.

An initial agency cost will be incurred revising applications and related documents.  There will be no added cost to the agency relative to staff time with the implementation of the increased fees.  There is no cost to other governmental agencies.  There is no economic impact to other state agencies. 

The revenue increase is necessary to maintain necessary budget carryover balances.  Up to this point the Board absorbed increased costs related to salaries and wages, the purchase and maintenance of four inspectors vehicles, increased fuel costs, postage and printing expense and administrative fees related to the State Treasurer’s office, the Judicial Center, Statehouse and Cedar Crest.  

The cost of these fees may be reflected in consumers cost of services that licensees provide. 

The estimate of revenue is attached.