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    Explanation of Fees

    • Effective 1992, Senate Bill 655 (Chapter 272, Laws of Maryland 1992) was enacted requiring the Board to fund its direct and indirect costs of operation without support from the State's general budget funds.
    • Direct costs are expenses directly incurred by the Board, such as, salaries, equipment, printing, etc.
    • Indirect costs are charges assessed to the Board by The Department of Health as reimbursement for Departmental expenses, such as services provided by the Office of the Attorney General.
    • Basically, the formula for determining the annual renewal fee is as follows:
      (Annual Direct Costs + Annual Indirect Costs)/Total Number of Licensees = Renewal Fee

    Frequently Asked Questions (FAQs)

    Q1.  Why are the renewal fees for other Maryland practitioners different from the fees assessed to occupational therapy practitioners?
    A1.  The primary reason is that the number of licensees is unique to each board.  The greater the number of licensees, the more contributors funding the board's costs of operation, the lower the renewal fee.

    Q2.  Why are the renewal fees for occupational therapy practitioners in other states different from Maryland?
    A2.  In other states, the licensing board may receive funding from that state's general fund and/or the total number of licensed occupational therapy practitioners is different (higher or lower) from the number in Maryland.

    Q3.  Why is the cost of annual renewal so much less expensive than biennial renewal?
    A3.  Costs reduced, eliminated, or deferred with annual renewal:
           a.  2% inflation projections eliminated;
           b.  $18 for the 2nd year of MHCC Fee collections deferred;
           c.  $4,227 annual costs for printing and distributing licenses eliminated;
           d.  $131,000 estimated recommended fund balance collection reduced.*

    *According to The Executive Analysis of the 2014 Budget prepared by the Maryland Department of Budget and Management, the anticipated annual revenue generated by boards whose licensees renew on an annual basis can be compared with the respective anticipated expenses for each year, [thereby reducing the amount needed for a fund balance].  However, some boards require licensees to renew biennially.  Under this model, the number of licensees renewing each year within the two-year renewal cycle may vary.  Therefore, the fund balance for these boards fluctuates from year to year.  Each board is advised to maintain a fund balance [in addition to its operating budget] of approximately 20 to 30%.  The recommended fund balance that The Board of Occupational Therapy is advised to collect is 25%.