SB 0448 - Fiscal Note

Fiscal Note - SB 0448 - Requires the licensure of professional addictions counselors

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO. 1928-01

BILL NO. SB 448

SUBJECT: Drugs and Controlled Substances: Licenses - Professional

TYPE: Original

DATE: February 27, 1999

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Professional Addictions Counselors'	$187,650	($173,232)	$100,992
PR Fees	($86,946)	$86,946	$0
Total Estimated Net Effect on All State Funds	$100,704	($86,286)	$100,992

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
None
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 5 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Economic Development (DED)-Professional Registration (DPR) assume the proposed legislation would result in potential registration of 834 individuals biennially, based on an estimate from the Substance Abuse Counselor's Certification Board/Department of Mental Health.

The projected revenue reflects a $225 fee for all categories of licensure. Revenue for FY 00 would be $187,650 (834 x $225). The fees have been set at a level sufficient to produce revenue to fund the estimated expenditures. In addition, a 3% growth rate has been estimated.

It is assumed all funds received by the Board would be deposited into the Professional Addictions Counselors' Fund. It is also assumed the Professional Additions Counselors' Fund would reimburse the PR Fees Fund for expenses paid by the PR Fees Fund.

DPR is requesting an additional 1.75 FTE to carry out duties generated by this proposal. The additional employees would include a .5 Principal Assistant (.5 FTE at $44,080 per year) to serve as senior executive officer of the board, a .5 Licensure Technician II (.5 FTE at $21,948 per year) to provide 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, a .5 Clerk IV (.5 FTE at $24,216 per year) to provide support for the Division's Technical Support Services and a .25 Account Clerk II (.25 FTE at $21,108 per year) to provide support for the Division's Central Accounting Section.

It is assumed the Board would meet two times per year for two days each. Board members would not receive a per diem, per this proposal. Associated travel costs (mileage, lodging and meals) for the 13 members would be $8,553 per year. It is assumed the Board would meet two times in FY 00.

DPR has based postage and printing costs on the actual FY 98 usage for a board of similar size and has estimated costs in FY 00 to be $5,146, and $6,250 in subsequent years. Additional costs would be incurred the first year for statute and rule mailings to applicants and for first year start up printing of rules and applications. Office and communication expenses and equipment are based on estimated existing costs within the Division.

Based on FY 98 complaints for an agency of similar size, DPR officials assume there would be 12 complaints filed each year, with an estimate of 30% of the complaints requiring investigation,

resulting in four investigations. It is estimated that an average investigation would require approximately 30 hours of field work and would be handled by in-house staff and board members.

DESCRIPTION (continued)

However, if it would be necessary to contract with outside professional experts, additional funding for expense and equipment would be needed. Travel costs to conduct the investigations are estimated at $1,020 annually. It is assumed the complaints and investigations would not start until FY 02.

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 $58.04, the annual total would be $3,482. 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 02. Based on a cost of $5,400 per case, the annual cost would be $5,400.

It is assumed 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 should elect to develop its own examination, costs for such an examination range from $10,000 to $50,000.

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 publishing and distribution cost of $3,253.50 for FY 00. Additionally, future costs are unknown and depends upon the frequency and length of rules filed, amended, rescinded or withdrawn.

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. However, Oversight assumes SOS could increase fees to cover any additional costs, per Section 536.033, RSMo and therefore, has not included associated costs in the fiscal impact specifications below.

Officials from the Office of the Attorney General (AGO)assume they would need .25 Assistant Attorney General I (.25 FTE at $30,000 per year) with associated expense and equipment to implement the proposal. However, Oversight assumes such costs are included in the Other Costs category in the fiscal impact specifications below. Oversight also notes that the DPR budget contains monies to reimburse the AGO for its services and assumes the DPR would increase its request for those monies if necessary.

DESCRIPTION (continued)

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

FISCAL IMPACT - State Government						FY 2000	FY 2001	FY 2002
						(10 Mo.)
PROFESSIONAL ADDICTIONS
COUNSELORS' FUND
Income-Division of Professional Registration (DPR)
Licensure Fees/Renewals	$187,650	$2,813	$199,125
Costs-DPR
Transfer to PR Fees Fund	$0	($176,045)	($98,133)
ESTIMATED NET EFFECT TO
PROFESSIONAL ADDICTIONS
COUNSELORS' FUND	$187,650	($173,232)	$100,992
PR FEES FUND
Income-Division of Professional Registration (DPR)
Transfer from Professional Addictions
Counselors' Fund	$0	$176,045	$98,133
Costs-DPR
Personal Service (1.75 FTE)	($43,049)	($52,951)	($54,275)
Fringe Benefits	(13,156)	(16,182)	(16,586)
Expense and Equipment	(27,259)	(16,484)	(18,061)
Other Costs/AGO Costs	(3,482)	(3,482)	(9,211)
Total Costs - DPR	($86,946)	($89,099)	($98,133)
ESTIMATED NET EFFECT TO
PR FEES FUND	($86,946)	$86,946	$0
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
	$0	$0	$0
FISCAL IMPACT - Small Business
It is expected that small businesses would have a direct fiscal impact as a result of this proposal.

DESCRIPTION

This bill would establish the State Board of Professional Addictions Counselors within the Division of Professional Registration. Fees collected would be deposited into the newly created Professional Addictions Counselors' Fund. Persons wishing to practice as addictions counselors would be required to first register with the board. The bill would contain provisions relating to the creation, operation, and duties of the board; qualifications of applicants for licensure; exemptions from licensure; license reciprocation; issuing of permits; scope of practice; terms of licensure; and the board's authority to promulgate rules, establish fees, refuse and revoke licenses, and cause complaints to be filed with the Administrative Hearing Commission.

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

This proposal would affect Total State Revenues.

SOURCES OF INFORMATION

Department of Economic Development - Division of Professional Registration

Office of the Secretary of State

Office of the Attorney General

Department of Revenue

Office of the State Treasurer

Office of Administration - Administrative Hearing Commission

Department of Labor and Industrial Relations

Office of State Courts Administrator

Jeanne Jarrett, CPA

Director

February 27, 1999