SB 0853 - Fiscal Note

Fiscal Note - SB 0853 - Revises Department of Health regulations regarding methamphetamine

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 2882-02

BILL NO. SB 853

SUBJECT: Drugs and Controlled Substances; Health Department; Licenses - Professional; Crimes and Punishment

TYPE: Original

DATE: February 9, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
General Revenue	($29,924)	($36,923)	($38,431)
Estimated Partial Net Effect on All State Funds*	($29,924)	($36,923)	($38,431)

*Net effect does not reflect unknown costs to the Department of Corrections.

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Local Government

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 5 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Economic Development-Division of Professional Registration, Missouri Police Chiefs' Association and Missouri Sheriffs' Association assume this proposal will not fiscally impact their agencies.

Officials from the Office of Attorney General assume any costs resulting from this proposal could be absorbed through existing resources.

Office of the State Public Defender and the Office of Prosecution Services assume this proposal would have minimal fiscal impact to their agencies.

Officials of the State Courts Administrator (CTS) assumed in a verbal response that after a period of adjustment they would expect this proposal to have minimal impact to the workload of the CTS.

Officials from the Department of Public Safety-Division of Highway Patrol (MSHP) assume at the present time, pseudoephedrine and ephedrine tablets are the most popular precursors for manufacturing methamphetamine. Establishing pseudoephedrine as a controlled substance and all preparations containing any amount of ephedrine as controlled substances and increasing the list of chemicals used to manufacture methamphetamine would enhance prosecution efforts to convict drug manufacturers. MSHP officials assume this would cause an increased number of liquid, powder, and drug samples being submitted to the Patrol laboratories. In addition to testing, the laboratories personnel would be required to present testimonies in more criminal cases. Therefore, MSHP would request one Criminalist II and related laboratory equipment, including an electric balance, steriozoom microscope, gas chromatography/mass spectrometer, and accessories. This additional FTE would help decrease the turnaround time related to clandestine lab cases and aid in the swift prosecution of these cases.

Oversight assumes this proposal increases penalties associated with the manufacture and production, or attempt to manufacture or produce, any quantity of any material which contains any quantity of amphetamine, methamphetamine, phenmetrazine or methylphenidate. It does not assign any new duties to the MSHP. Therefore, Oversight assumes that any costs for additional testing equipment or personnel to decrease the turnaround time related to such cases and to aid in swift prosecution of those cases would be requested through the normal budgetary process.

Officials of the Department of Corrections (DOC) assume that new commitments which could result from the creation of the offense(s) outlined in this proposal could not be accurately determined. In addition, changes in penalty provisions for current crimes could result in additional costs due to new commitments and/or longer sentences. The utilization of these laws ASSUMPTION (continued)

for both new offenses and enhanced penalties for current offenses depend upon actions of prosecutors and the courts.

If additional persons were sentenced to the custody of the DOC due to the provisions of this legislation, the DOC would incur a corresponding increase in operational costs either through incarceration (average of $30.37 per inmate, per day) or through supervision provided by the Board of Probation and Parole (average of $2.47 per offender, per day).

Due to the wide variance of crimes and punishments including newly created crimes and punishments, the fiscal impact as it relates to the DOC is unknown.

The DOC anticipates that new beds might have to be constructed to accommodate the number of offenders receiving longer sentences due to passage of this bill. At this time, the DOC is unable to determine the number of people that would be convicted under the provisions of this bill to estimate the fiscal impact for additional capital improvements. Estimated construction cost for one new maximum security inmate bed is $48,800.

DOC officials stated that the long-range fiscal impact to their agency would be unknown.

Officials of the Department of Health (DOH) assume as a result of this proposal manufacturers and distributors of sulfuric acid, hydrocholoric acid, iodine and red phosphorous would be required to register with DOH and report all distributions of such chemicals in Missouri. Although, regulations specifying a registration fee have not been enacted yet, an annual fee of $200 has been proposed. DOH officials estimated that 100 manufacturers and distributors would be required to register due to this proposal. If proposed rules are finalized, this would generate $20,000 annually in general revenue.

DOH staff assumed they would request two (2) Investigator II's to implement this proposal. One Investigator II would be requested to survey/monitor documentation of distribution and sales of ephedrine and pseudoephedrine in pharmacies. There are approximately 1,100 pharmacies in Missouri. Suspicious sales or information would be communicated to proper law enforcement officials. Education and literature materials would be needed to inform all retailers and pharmacies concerning new requirements and reasons for changes in the law.

DOH officials also stated the other Investigator II was requested in the FY99 budget to cover additional workload, supplies and expenses. If approved, all costs added due to the regulation of the chemicals -- sulfuric acid, hydrochloric acid, iodine and red phosphorous in this proposal and the additional costs of regulating the chemicals -- methylamine, ethyl amine, propionic anydride, isosafrole, safrole, piperonal, n-methyl ephedrine, n-methyl pseudoephedrine, benzaldehyde, nitroethane and methyl isobutyl ketone would be covered.

ASSUMPTION (continued)

If not approved, DOH officials assume they would request the Investigator II to inspect all registrant sites and required records, analyze distribution reports of registrants, investigate all complaints and anomalies involving possible diversion of regulated chemicals or record keeping in violation of Missouri Statutes, and to consult with and educate chemical registrants as needed.

Oversight assumed for purposes of this fiscal note that the one Investigator II already requested in the FY99 core budget would be requested through the normal budget process and has therefore not included costs associated for that FTE in the fiscal estimate.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
Income - Department of Health
Registration fees	$20,000	$20,000	$20,000
Cost - Department of Corrections
Additional beds	(Unknown)	(Unknown)	(Unknown)
Cost - Department of Health
Personal Service (1 FTE)	($25,410)	($31,267)	($32,049)
Fringe Benefits	(7,122)	(8,764)	(8,983)
Expense and Equipment	(17,392)	(16,892)	(17,399)
Total Cost - Department of Health	($49,924)	($56,923)	($58,431)
ESTIMATED PARTIAL NET
EFFECT TO GENERAL REVENUE*	($29,924)	($36,923)	($38,431)
*Net effect does not reflect unknown costs to Department of Corrections.
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	$0	$0	$0
FISCAL IMPACT - Small Business

Small businesses manufacturers and distributors of chemicals listed in this legislation could be impacted by this proposal by requiring them to register with the Department of Health (DOH) at a fee promulgated by rule by DOH.

DESCRIPTION

This proposal would strengthen the Department of Health regulations concerning methamphetamine and its components. The proposal also contains some technical changes. The definition of "manufacture" would specify that the term does not include the preparation of a controlled substance by an individual for his own use as a result of a prescription or order by a practitioner as authorized by statute. Currently, any mixture containing ephedrine is a Schedule IV drug, if ephedrine is the only active medicinal ingredient. The proposal would delete the latter phrase, so that any mixture containing ephedrine would be a Schedule IV drug. Pseudoephedrine would be added to the list of Schedule V drugs. The proposal would allow DOH to terminate any restriction or limitation previously imposed upon a registration if the registrant has remained in compliance with restrictions and applicable laws. Currently, a pharmacist may sell and dispense any Schedule II drug in emergency situations, as long as the sale is according to detailed requirements listed in the statute. The proposal would delete the detailed requirements. The provisions regarding disciplinary actions that DOH may take with a registrant are revised. A report would be filed with the Department of Health for sales of sulfuric acid, hydrochloric acid, iodine and red phosphorus. It is currently unlawful for any person to possess listed chemicals with intent to manufacture, produce, or test controlled substances. The proposal would add that it would also be unlawful to possess any product or substance containing a listed chemical to manufacture, produce or test controlled substances.

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

SOURCES OF INFORMATION

Department of Health

Department of Corrections

Office of Attorney General

Department of Economic Development

Division of Professional Registration

Department of Public Safety

Missouri Sheriff's Association

Jeanne Jarrett, CPA

Director

February 9, 1998