SB 0826 - Fiscal Note

Fiscal Note - SB 0826 - Sets limits on professional addictions counseling

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 3664-01

BILL NO. SB 826

SUBJECT: Licenses - Professional; Mental Health

TYPE: Original

DATE: March 2, 1998

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
Professional Addictions Counselors'	$50,622	($37,103)	$48,506
PR Fees	$0	$0	$0
Mental Health Earnings	$0	$0	$0
Total Estimated Net Effect on All State Funds	$50,622	($37,103)	$48,506

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
None
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 6 pages.

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 1999	FY 2000	FY 2001
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 potential licensure of approximately 720 individuals. This figure was obtained by the Department of Mental Health (DMH). The initial registration fee and biennial renewal fee would be set at $125 for all categories of licensure. In addition, a 3% growth rate has been estimated.

It is assumed the Professional Addictions Counselors' Fund would reimburse the PR Fees Fund for all expenses paid by PR Fees Fund.

DPR is requesting an additional .75 FTE to carry out duties generated by this proposal. The additional employees would include a .25 Principal Assistant (.25 FTE at $41,000 per year) to serve as senior executive officer of the Board and to be responsible for overseeing the licensure and regulation program, a .25 Licensure Technician II (.25 FTE at $18,696 per year) to provide clerical and technical support directly to the Principal Assistant and the Board and to be responsible for processing applications for licensure, as well as respond to any inquiries relating to the licensure law or rules and regulations and a .25 Clerk Typist II (.25 FTE at $16,212 per year) to provide support for the Administrative Support Services.

It is assumed the Board would meet three times per year for one day each. Associated travel costs (mileage, lodging and meals) would be $8,092 per year. It is assumed the Board would meet only two times in FY 99.

DPR has based postage and printing costs on the actual FY 97 usage for a board of similar size (Optometry Board) and has estimated costs in FY 99 to be $4,442 and $1,862 in subsequent years. The first year costs would include printing and postage for statute and rule mailings to applicants and for first year start up printing of rules, letterhead and envelopes. Office and communication expenses and equipment are based on estimated existing costs within the Division.

ASSUMPTION (continued)

Based on FY 97 complaints for a Board of similar size, DPR assumes there would be approximately 20 complaints filed with the Board each year. It is assumed the complaints and investigations would not start until FY 01. It is also estimated that 10% (2 investigations) of complaints filed would require field investigations. It is assumed that any professional expertise needed in an investigation would be handled by in-house staff and Board members. However, if there are substantially more complaints than estimated or additional legislation is passed or if it would be necessary to contract with outside professional experts, additional staffing, or expense

and equipment would be needed. Total investigative travel expenses are estimated at $330 annually.

It is assumed the Office of the Attorney General (AGO) would provide approximately 60 hours of assistance per year with rules, opinions and meetings. Based on an hourly cost of $56.39, the annual total would be $3,383. Also, it is estimated that 25% of the investigations (1 case) would be forwarded to the AGO for further action. It is assumed there would not be any cases until FY 01. Based on a cost of $5,400 per case, the annual cost would be $5,400.

DPR assumes that existing staff would design, program, and implement a computer licensure program. However, if costs are higher than anticipated, further monies would be required.

Also, it is assumed the Board would utilize a nationally standardized examination. However, if the Board would elect to develop its own examination, the cost is estimated to be somewhere between $10,000 and $50,000. It is assumed the Board would utilize a professional testing service to administer the exam, thus, all exam fees would be paid directly to the testing service by the exam applicant.

Officials from the Department of Mental Health (DMH) assume the proposed legislation would cause a loss in funding to the division, assuming the functions of the MSACCB are absorbed or transferred to the Department of Economic Development, along with the appropriated funds and revenues associated with the Missouri Substance Abuse Counselors' Certification Board, Inc. (MSACCB). The Division of Alcohol and Drug Abuse (ADA) is the administrative agent for the MSACCB, the current certifying body. The current appropriation for FY 98 in the DMH budget is $108,344 with 2.5 FTE and estimated at $138,694 with 3.5 FTE for FY 99 through the Mental Health Earnings Fund. The FY 99 amount includes a $29,622 (1 FTE) decision item recommended by the Governor. Being certified by MSACCB is one of the four ways to become a Qualified Substance Abuse Counselor (QSAC). If certification ceases to exist, and licensure is required instead, approximately 25% of persons previously qualified will no longer qualify as a QSAC. The Division of ADA's certified programs are required to have QSACs in 50% of their positions where staff provide counseling. If certification is no longer recognized as one way to meet the QSAC definition, then many programs may be out of

ASSUMPTION (continued)

compliance with the Division's standards. In many instances, licensed counselors are paid at a higher level than certified counselors. Therefore, programs could be impacted financially. The complete local impact can not be determined at this time. Oversight recognizes the possibility of increased costs for salaries, but believes that decisions to increase salary ranges or to provide additional training would become budgetary matters. Therefore, such costs are not included in the fiscal impact specifications below.

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 $3,025 for FY 1999. While this bill alone would not require SOS to acquire additional staff, SOS assumes the cumulative effect of additional Register and Code publishing duties could, at some point, require additional staff or equipment. However, Oversight assumes SOS could increase fees to cover any additional costs, per Section 536.033, RSMo.

Officials from the Office of the Attorney General (AGO) assume they would need a .25 Assistant Attorney General I (.25 FTE at $30,000 per year) to provide legal representation to the Board on all licensing matters and counsel the Board on other legal matters. However, Oversight assumes DPR has included any additional costs which would be incurred by the AGO in the Other Costs category in the fiscal impact specifications below.

Officials from the Department of Revenue (DOR),Office of State Courts Administrator (CTS), Department of Mental Health (DOH), Administrative Hearing Commission (AHC) and the Office of the State Treasurer (STO) assume the proposed legislation would have either minimal or no fiscal impact on their agencies.

FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
PROFESSIONAL ADDICTIONS
COUNSELOR'S FUND
Revenue-Division of Professional Registration (DPR)
Registration Fees/Renewals	$90,000	$2,625	$95,375
Costs-DPR
Transfer to PR Fees Fund	($39,378)	($39,728)	($46,869)
ESTIMATED NET EFFECT TO
PROFESSIONAL ADDICTIONS
COUNSELOR'S FUND	$50,622	($37,103)	$48,506
FISCAL IMPACT - State Government	FY 1999	FY 2000	FY 2001
(continued)	(10 Mo.)
PR FEES FUND
Income-Division of Professional Registration (DPR)
Transfer from Professional Addictions
Counselors' Fund	$39,378	$39,728	$46,869
Costs-DPR
Personal Service (.75 FTE)	($16,209)	($19,938)	($20,436)
Fringe Benefits	(4,543)	(5,589)	(5,728)
Expense and Equipment	(15,243)	(10,717)	(11,388)
Other Costs/AGO	(3,383)	(3,484)	(9,317)
Total Costs - DPR	($39,378)	($39,728)	($46,869)
ESTIMATED NET EFFECT TO
PR FEES FUND	$0	$0	$0
MENTAL HEALTH EARNINGS FUND
Savings-Department of Mental Health (DMH)
Transfer of certification authority
to DPR (2.5 FTE)	$111,053	$113,829	$116,675
Loss-DMH
Fees from the MO Substance Abuse
Counselors' Certification Board	($111,053)	($113,829)	($116,675)
ESTIMATED NET EFFECT TO
MENTAL HEALTH EARNINGS FUND	$0	$0	$0
FISCAL IMPACT - Local Government	FY 1999	FY 2000	FY 2001
	(10 Mo.)
	$0	$0	$0
FISCAL IMPACT - Small Business

This proposal could have a direct fiscal impact on small businesses.

DESCRIPTION

This act would require that persons engaged in the professional practice of addictions counseling be licensed by the state as a professional addictions counselor or substance abuse counselor. The "State Board of Professional Addictions Counselors" would also be established.

Applicants would be required to meet specific application, education, experience, and examination criteria for licensure. The Division of Professional Registration would collect application and examination fees to be deposited in the newly created Professional Addictions Counselors' Fund.

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

This legislation would affect Total State Revenues.

SOURCES OF INFORMATION

Department of Economic Development-Professional Registration

Office of the Secretary of State

Department of Revenue

Office of State Courts Administrator

Department of Mental Health

Administrative Hearing Commission

Office of the State Treasurer

Office of the Attorney General

Jeanne Jarrett, CPA

Director

March 2, 1998