This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0227 - Registration of Pharmacy Technicians; Changes to Required Material on Prescrip. & Subpoena Power to Bd. of Pharma

L.R. NO.  0995-01
BILL NO.  SB 227
SUBJECT:  Licenses - Professional: Pharmacy
TYPE:     Original
DATE:     February 7, 1997


                              FISCAL SUMMARY

                    ESTIMATED NET EFFECT ON STATE FUNDS

FUND AFFECTED              FY 1998             FY 1999           FY 2000

State Board of
Pharmacy                    $4,380              $5,026            $6,847

PR Fees                         $0                  $0                $0

Total Estimated
Net Effect on All
State Funds                 $4,380              $5,026            $6,847


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED              FY 1998             FY 1999           FY 2000

None                            $0                  $0                $0

Total Estimated
Net Effect on All
Federal Funds                   $0                  $0                $0


                    ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED              FY 1998             FY 1999           FY 2000

Local Government                $0                  $0                $0


                              FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Economic Development (DED)-Professional
Registration (DPR) assume the proposed legislation would result in the
registration of 5,600 pharmacy technicians annually, with a projected annual
growth rate of 3%.  The registration fee and renewal fee would be set at $15.

To implement the legislation, DPR asserts the need for one Licensure
Technician I (1 FTE at $16,488 per year) to provide clerical and technical
support directly to the Principal Assistant and the Board.  This position
would also be responsible for maintaining records of any investigations,
board review, establishment and maintenance of the employment
disqualification list, as well as necessary correspondence to the registrant.
This FTE would also coordinate and process annual renewals.  Additionally,
DPR would need a .25 Clerk Typist I (.25 FTE at $14,856 per year) to be added
to the Cash Receiving Room to process all applications for license renewals.
This position would not be needed until FY 99 due to no renewals being
received in FY 98.

DPR assumes the existing licensing system would be adequate to handle an
additional 5,600 technicians per year.

DPR has estimated there would be two mailings per year for a total of $3,584
and annual printing costs of $500.  Office and communication expenses and
equipment were based on estimated existing costs within the Division.

DPR estimates General Revenue transfers to be $49,112 per year, based on the
transfer amount for the State Board of Embalmers and Funeral Directors, a
board of similar size.

It is assumed the Pharmacy Fund would reimburse the PR Fees Fund for the
personal service and operating expense of the .25 Clerk Typist I.

Additionally, DPR has included rental costs to accommodate the additional
FTEs.  However, Oversight assumes DPR would locate new FTEs in existing
facilities and has not included rental costs as a result of this proposal.
Oversight has also adjusted equipment requests based on OA guidelines.

Officials from the Office of the Secretary of State (SOS) assume the proposed
legislation would require the printing of additional pages in the Missouri
Register and the Code of State  Regulations and have estimated a one-time
publishing and distribution cost of $3,630 for FY 1998.  The actual financial
impact could be substantially more or less than this estimate, depending on
the actual rule making activity of the board.  The impact of this proposal in
future years is unknown and depends upon the frequency and length of rules
filed, amended or withdrawn.  While this bill alone would not require SOS to
acquire additional staff, SOS assumes the cumulative effect of additional
bills that require rule making activity may, in the aggregate, necessitate
additional staff.  However, Oversight assumes SOS could increase fees to
cover any additional costs, per Section 536.033, RSMo.

Officials from the Office of Attorney General (AGO), Office of State Courts
Administrator (CTS) and Administrative Hearing Commission (AHC) assume the
proposed legislation would have either minimal or no fiscal impact on their
agencies.


FISCAL IMPACT - State Government           FY 1998    FY 1999    FY 2000
                                          (10 Mo.)
PR FEES FUND

Revenue-Division of Professional Registration (DPR)
   Transfer from State Board of Pharmacy Fund   $0     $5,168     $5,237

Costs-DPR
   Personal Service (.25 FTE)                   $0   ($3,902)   ($4,000)
   Fringe Benefits                               0    (1,113)    (1,141)
   Equipment and Expense                         0      (153)       (96)
Total Costs - DPR                               $0   ($5,168)   ($5,237)

ESTIMATED NET EFFECT TO
PR FEES FUND                                    $0         $0         $0


STATE BOARD OF PHARMACY FUND

Income-Division of Professional Registration (DPR)
   License Fees/Renewals                   $84,000    $86,520    $89,115

Costs-DPR
   Personal Service (1 FTE)              ($14,078)  ($17,323)  ($17,756)
   Fringe Benefits                         (4,016)    (4,942)    (5,066)
   Expense and Equipment                  (12,414)    (4,949)    (5,097)
   Transfer to PR Fees Fund                      0    (5,168)    (5,237)
   Other Costs/GR Transfers               (49,112)   (49,112)   (49,112)
Total Costs - DPR                        ($79,620)  ($81,494)  ($82,268)

STATE BOARD OF PHARMACY FUND                $4,380     $5,026     $6,847


FISCAL IMPACT - Local Government           FY 1998    FY 1999    FY 2000
                                          (10 Mo.)

                                                $0         $0         $0


FISCAL IMPACT - Small Business

No direct fiscal impact to small businesses would be expected as a result of
this proposal.


DESCRIPTION

The proposal would require technicians employed by a pharmacy to register
with the State Board of Pharmacy.  The Board would maintain an employment
disqualification list of the names of all pharmacy technicians with certain
violations.

The proposal would allow a pharmacist to use a more cost effective generic
drug, unless the prescription specifically states, in the prescriber's own
handwriting, that a brand name drug be used.

The continuing education requirements would be revised.  Also, the State
Board of Pharmacy would be allowed to remit testing fees directly to a
testing service, if no part of the fee is remitted to the Board from the
testing service.

The proposed legislation would  grant the State Board of Pharmacy subpoena
power to subpoena witnesses and issue subpoena duces tecum to require the
production of documents, records, reports and similar material in connection
with any investigation or hearing.

The Board of Pharmacy would be authorized to promulgate regulations
establishing various permit classifications and standards for the operation
of pharmacies.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space. It would affect total state revenue.


SOURCES OF INFORMATION

Department of Economic Development-Professional Registration
Office of the Secretary of State
Office of the Attorney General
Office of State Courts Administrator
Administrative Hearing Commission