PROPOSED RULEMAKINGS
STATE BOARD OF AUCTIONEER EXAMINERS
[ 49 PA. CODE CH. 1 ]
Schedule of Fees
[43 Pa.B. 1279]
[Saturday, March 9, 2013]The State Board of Auctioneer Examiners (Board) proposes to amend § 1.41 (relating to schedule of fees) to read as set forth in Annex A.
Effective Date
The proposed rulemaking will be effective upon final-form publication in the Pennsylvania Bulletin. It is anticipated that the increased biennial renewal fees will be implemented with the February 28, 2015, biennial renewal.
Statutory Authority
Section 6(a) of the Auctioneer Licensing and Trading Assistant Registration Act (act) (63 P. S. § 734.6(a)) requires the Board to increase fees by regulation to meet or exceed projected expenditures if the revenue raised by fees, fines and civil penalties are not sufficient to meet expenditures over a 2-year period.
Background and Need for Amendment
Under section 6(a) of the act, the Board is required by law to support its operations from the revenue it generates from fees, fines and civil penalties. In addition, the act provides that the Board shall increase fees if the revenue raised by fees, fines and civil penalties is not sufficient to meet expenditures over a 2-year period. The Board raises the majority of its revenue through biennial renewal fees. A small percentage of its revenue comes from application fees and civil penalties.
The Board has not raised its biennial renewal fees since 1998, when the biennial renewal fee for apprentice auctioneers increased from $30 to $100 and the biennial renewal fees for auctioneers, auction companies and auction houses increased from $50 to $200. At the time, the Board anticipated that these fees would sustain the Board for at least 10 years. At the March 12, 2012, Board meeting, representatives from the Department of State's Bureau of Finance and Operations (BFO) presented a summary of the Board's revenue and expenses for Fiscal Year (FY) 2009-2010 and FY 2010-2011 and projected revenue and expenses through FY 2014-2015. As anticipated, the biennial renewal fees were adequate for about 10 years. However, the actual expenditures for FY 2009-2010 and FY 2010-2011 outpaced revenues during the same period by approximately $128,400. At the current fee levels, the BFO projects revenue of approximately $475,000 in a given 2-year period, while budgeted expenditures for the next 2 years are projected at $532,500. The BFO projects that, without an increase to the biennial renewal fees, the Board will incur a deficit of approximately $118,700 in FY 2011-2012 and a deficit of approximately $176,200 by FY 2013-2014, necessitating a fee increase in 2015 to recoup existing deficits and to ward off further deficits. Therefore, the Board determined that it was necessary to raise fees to meet or exceed projected expenditures, in compliance with section 4(b) of the act (63 P. S. § 734.4(b)). As a result, the Board voted at its July 9, 2012, meeting to increase biennial renewal fees by 30% to meet projected expenditures. The proposed new biennial renewal fees will enable the Board to recoup the projected deficits and meet its estimated expenditures for a number of years to come.
Description of Proposed Rulemaking
The proposed rulemaking would amend § 1.41 to increase biennial renewal fees for licenses and registrations issued by the Board to produce adequate revenue to meet projected expenditures as required under section 6(a) of the act. Specifically, the biennial renewal fees for trading assistants and apprentice auctioneers will increase from $100 to $130. The biennial renewal fees for auctioneers, auction houses and auction companies will increase from $200 to $260.
Fiscal Impact
The proposed rulemaking will increase the biennial renewal fees for all classes of licensees/registrants of the Board. There are currently approximately 284 apprentice auctioneers, 139 auction houses, 2,087 auctioneers, 193 auction companies and 52 trading assistants that will be required to pay 30% more to renew their licenses/registrations when they expire in 2015 and thereafter. The Board has concluded that virtually all auction houses and auction companies in this Commonwealth are small businesses. Likewise, auctioneers, trading assistants and apprentice auctioneers either are themselves small businesses or are employed by small businesses. However, whether these businesses will be adversely affected by the increase in the biennial renewal fee depends on whether the employer elects to pay the biennial renewal fees on behalf of its licensed employees. Some companies may do so, others may not. A company could avoid the adverse effect by simply requiring its employees to pay their own licensure fees. The proposed rulemaking should not have other fiscal impact on the private sector, the general public or political subdivisions of this Commonwealth.
Paperwork Requirements
The proposed rulemaking will require the Board to alter some of its forms to reflect the new fees. However, the proposed rulemaking will not create additional paperwork for the regulated community or for the private sector.
Sunset Date
The act requires the Board to monitor its revenue and costs on a fiscal year and biennial basis. Therefore, a sunset date has not been assigned.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on February 21, 2013, 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 the Chairpersons of the House Professional Licensure Committee and the Senate Consumer Protection and Professional Licensure Committee. A copy of this material is available to the public upon request.
Under section 5(g) of the Regulatory Review Act, IRRC may convey comments, recommendations or objections to the proposed rulemaking within 30 days of the close of the public comment period. The comments, recommendations or objections must specify the regulatory review criteria which 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 of comments, recommendations or objections raised.
Public Comment
Interested persons are invited to submit written comments, suggestions or objections regarding this proposed rulemaking to Board Counsel, State Board of Auctioneer Examiners, P. O. Box 2649, Harrisburg, PA 17105-2649 within 30 days following publication of this proposed rulemaking in the Pennsylvania Bulletin. Reference Regulation No. 16A-649—Schedule of Fees on comments.
SHERMAN HOSTETTER, AU,
ChairpersonFiscal Note: 16A-649. No fiscal impact. The fee increases are necessary to cover projected expenditures for the Board; (8) recommends adoption.
Annex A
TITLE 49. PROFESSIONAL AND VOCATIONAL STANDARDS
PART I. DEPARTMENT OF STATE
Subpart A. PROFESSIONAL AND OCCUPATIONAL AFFAIRS
CHAPTER 1. STATE BOARD OF AUCTIONEER EXAMINERS
FEES § 1.41. Schedule of fees.
Applicants shall pay the following fees:
* * * * * Biennial renewal fee for auctioneer
license
[$200] $260* * * * * Biennial renewal fee for apprentice auc-
tioneer
[$100] $130* * * * * Biennial renewal fee for auction house and
auction company
[$200] $260Application fee for trading assistant
registration
$100Biennial renewal fee for trading assistant
registration
$130* * * * *
[Pa.B. Doc. No. 13-400. Filed for public inspection March 8, 2013, 9:00 a.m.]
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