LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 2183

STATE OF NEW JERSEY

218th LEGISLATURE

 

DATED: APRIL 23, 2018

 

 

SUMMARY

 

Synopsis:

"Music Therapist Licensing Act."

Type of Impact:

Annual State revenue and expenditure increases to the General Fund

Agencies Affected:

Department of Law and Public Safety, Division of Consumer Affairs, and State Board of Medical Examiners

 

Office of Legislative Services Estimate

Fiscal Impact

Year 1 

Year 2 

Year 3 

 

Annual State Cost Increase

Indeterminate

 

Annual State Revenue Increase

Indeterminate

 

 

 

 

 

·         The Office of Legislative Services (OLS) finds that the bill will cause indeterminate increases in annual State revenues and expenditures.  The OLS, however, cannot assess the direction of the net effect of the two increases given the absence of information on the future cost of regulating music therapists and on future license fee and penalty collections.

·         The State will incur an indeterminate annual increase in operating expenditures associated with the licensure and regulation of music therapists, including the cost of establishing and operating the new five-member Music Therapy Advisory Committee.

·         Additional annual State revenue will accrue from indeterminate fee payments for the new music therapist licenses and indeterminate fine and penalty payments from violators of statutory and regulatory requirements applicable to the newly licensed profession.

 

BILL DESCRIPTION

 

      This bill provides for the licensure of music therapists and creates the Music Therapy Advisory Committee. 

      Currently, the State does not regulate the profession of music therapists.  Under this bill, music therapists will be required to obtain a biennial license to practice in New Jersey. The licensure fee will be determined by the State Board of Medical Examiners in consultation with the committee.

      The bill also establishes the five-member Music Therapy Advisory Committee under the State Board of Medical Examiners in the Division of Consumer Affairs in the Department of Law and Public Safety.  The committee will issue and renew professional licenses; maintain a record of licensed professionals; establish continuing education standards for licensed professionals; and set the charges for licensures, renewals, and other services.  Board members will receive no compensation for their services but will be reimbursed for the expenses they will incur in the performance of their duties.  In addition, board members will receive the office and meeting facilities necessary for the proper conduct of committee business. 

      The committee will operate under the provisions of N.J.S.A.45:1-14 et seq., which authorize professional and occupational boards to suspend or revoke any license, levy unspecified fines, or impose unspecified civil penalties if a board concludes that an individual has practiced a regulated profession without a license or has otherwise violated statutory or regulatory provisions applicable to the profession.  

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS finds that the bill will cause indeterminate increases in annual State General Fund expenditures and revenues.  The OLS, however, cannot assess the direction of the net effect of the two increases given the absence of information on the future cost of regulating music therapists and on future license fee and penalty collections.

      The OLS notes that Connecticut, Illinois, Nevada, North Dakota, Oklahoma, Oregon, and Rhode Island currently regulate or license the professional practice of music therapy.

      State Revenue Increases:  The bill will increase annual State revenue collections from licensure fees, fines, and penalties by indeterminate amounts. 

      The OLS cannot quantify the licensure fee payments the committee will collect from the biennial licensing requirement because the bill leaves the setting of the specific fee levels to the committee’s discretion, and because the number of future license issuances is unknown.

      The American Music Therapy Association provided information to the OLS that in 2016 there were 207 music therapists residing in New Jersey who are certified by the Certification Board for Music Therapists.  In addition, there were 602 board certified music therapists residing in New York and 492 residing in Pennsylvania, of whom an unknown number may choose to become licensed in New Jersey.

      Moreover, the OLS anticipates that the State may annually collect indeterminate fine and penalty payments from violators of statutory and regulatory requirements applicable to the newly licensed profession.  The OLS, however, cannot project the amount the State will collect because the bill leaves the setting of the specific fine and penalty levels to the committee’s discretion and because the OLS has no information on which to base an estimate of the number and magnitude of future penalty assessments and payments. 

      State Expenditure Increase:  The bill newly establishes the five-member Music Therapy Advisory Committee under the State Board of Medical Examiners in the Division of Consumer Affairs in the Department of Law and Public Safety to newly regulate music therapists.  The committee’s regulatory activities will increase annual board operating expenses.  The OLS, however, cannot determine the increase’s magnitude on account of uncertainty regarding the number of professionals who will be regulated and operational decisions the committee will make to implement the bill.  In any event, the five committee members will serve without compensation and will only be reimbursed for the expenses they will incur in the performance of their duties. 

 

 

Section:

Law and Public Safety

Analyst:

Kristin Brunner Santos

Senior Fiscal Analyst

Approved:

Frank W. Haines III

Legislative Budget and Finance Officer

 

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).