COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.: 2056-01

Bill No.: SB 532

Subject: Agriculture & Animals; Veterinarians

Type: Original

Date: March 6, 2001

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FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2002	FY 2003	FY 2004
General Revenue	($50,000)	($100,000)	($150,000)
Veterinary Medical Board	($2,666)	($2,728)	($2,792)
Total Estimated Net Effect on All State Funds	($52,666)	($102,728)	($152,792)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2002	FY 2003	FY 2004
None	$0	$0	$0
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2002	FY 2003	FY 2004
Local Government	$0	$0	$0

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 5 pages.

FISCAL ANALYSIS

ASSUMPTION

Officials from the Office of the State Treasurer, the Office of Administration-Division of Budget and Planning, the Coordinating Board For Higher Education, and the Department of Agriculture-Animal Health Division assume their agencies would not be fiscally impacted by the proposed legislation.

Officials from the University of Missouri assume the proposal would result in no additional cost to the university.

This bill creates the Large Animal Veterinary Medicine Loan Repayment Program. Officials with the Office of the Secretary of State assume the Missouri Veterinary Medical Board will promulgate rules to implement this bill. Based on experience with other divisions, the rules, regulations and forms issued by the Missouri Veterinary Medical Board could require as many as 12 pages in the Code of State Regulations. For any given rule, roughly half again as many pages are published in the Missouri Register in the Code because cost statements, fiscal notes and the like are not repeated in Code. These costs are estimated. The estimated cost of a page in the Missouri Register is $23.00. The estimated cost of a page in the Code of State Regulations is $27.00. The actual cost could be more or less than the numbers given. The impact of this legislation in future years is unknown and depends upon the frequency and length of rules filed, amended, rescinded or withdrawn.

Oversight assumes the SOS could absorb the costs of printing and distributing regulations related to this proposal. If multiple bills pass which require the printing and distribution of regulations at substantial costs, the SOS could request funding through the appropriation process. Any decisions to raise fees to defray costs would likely be made in subsequent fiscal years.

Officials from the Department of Economic Development-Division of Professional Registration (DPR) assume the following:

• The majority of contracts entered into would be for a five year period.



• The student loan repayment would be appropriated from General Revenue and placed in the Large Animal Veterinary Medicine Loan Repayment Program Fund. The cost for student loan repayment would be up to $50,000 the first year for five participants, $100,000 the second year for 10 participants, and $150,000 the third year for 15 participants. The annualized fiscal impact for this fiscal note would be $150,000. The maximum repayment would be up to $250,000 per year for 25 participants. This does not include expenses incurred to administer the program.

ASSUMPTION (continued)

• The additional responsibilities and expenses, with the exception of the additional board's meeting expenses, that would be incurred to administer the legislation could be absorbed by existing staff. However, it could be necessary to add additional FTE in the future to

handle the increase in workload that would occur as the program grows.

• The board would need to establish guidelines for ensuring that the participants of the program adhere to their contractual agreement. It is assumed that existing staff could absorb the additional duties required to ensure proper contractual agreement. However, additional FTE could be necessary as the program grows.



• One additional board member meeting per year would be needed in order to determine five qualified individuals for the program and the area of need the five individuals would practice. The six board members appointed would each be paid $50 per diem.

6 board members x $50 per day x 2 days x 1 additional meeting = $600 per year.

• The additional board meeting per year would have the following travel expenses. The total cost would be $2,066:

Mileage: It is estimated that each board member would drive an average of 240 miles round trip x 1 additional meeting per year x 6 members x $.285 per mile = $410.

Lodging: It is estimated that each board member would have additional hotel costs of $75 per night x 2 additional night per year x 6 members = $900

Meals: Meal costs are estimated at $35 per day x 2 days x 1 additional meeting per year x 9 individuals (includes the AG Representative, Principal Assistant and the Clerk IV) = $630. In addition, a dinner meal for the evening prior to the meeting would cost $21 x 1 meeting x 6 members = $126. Therefore, total meal expense would be $756.

DPR has included the cost of loan repayments in the General Revenue Fund. The proposal states that moneys in the Large Animal Veterinary Medicine Loan Repayment Program Fund would be used by the Missouri Veterinary Medical Board to provide loan repayments. Oversight assumes the income to the Large Animal Veterinary Medicine Loan Repayment Program Fund would be minimal since the income would be from a breach of contract between the individual and the board.

FISCAL IMPACT - State Government	FY 2002 (10 Mo.)	FY 2003	FY 2004
GENERAL REVENUE FUND Cost-DPR Loan Repayments	($50,000)	($100,000)	($150,000)
VETERINARY MEDICAL BOARD FUND Cost-DPR Board Meeting Expenses	($2,666)	($2,728)	($2,792)

FISCAL IMPACT - Local Government	FY 2002 (10 Mo.)	FY 2003	FY 2004
	$0	$0	$0

FISCAL IMPACT - Small Business

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

DESCRIPTION

This bill creates the Large Animal Veterinary Medicine Loan Repayment Program. The Missouri Veterinary Medical Board will designate counties, communities, or portions of rural regions as areas needing large animal veterinary services. A veterinary student meeting certain requirements may enter into a contract with the board for repayment of educational loans. If the student agrees to serve 5 years or more in a board-designated area, the board may pay up to $10,000 for each year the student agrees to serve in the area. Provisions for failure of the student to meet contractual obligations are included in the bill. The board may authorize repayment for up to 5 veterinarians each year.

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 Economic Development

Division of Professional Registration

Office of the Secretary of State

Office of the State Treasurer

Office of Administration

Division of Budget & Planning

Coordinating Board for Higher Education

Department of Agriculture

University of Missouri

Jeanne Jarrett, CPA

Director

March 6, 2001