COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         1577-03

Bill No.:          Perfected HCS for HB 545 & 590

Subject:           Economic Development Dept.; Licenses - Professional; Pharmacy

Type:              Origianl

Date:               February 13, 2007

Bill Summary:            Modifies the law relating to the licensing of pharmacists.

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 5 pages.

☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Health and Senior Services assume the proposal will have no fiscal impact on their organization.

Officials from the Office of Secretary of State (SOS) state the fiscal impact for this proposal is less than $2,500. The SOS does not expect that additional funding would be required to meet these costs. However, the SOS also recognizes that many such bills may be passed by the General Assembly in a given year and that collectively the costs may be in excess of what the SOS can sustain within its core budget. Therefore, the SOS reserves the right to request funding for the costs of supporting administrative rules requirements should the need arise based on a review of the finally approved bills signed by the Governor.

Officials from the Department of Insurance, Financial and Professional Regulation (DIFP) assume the Board of Healing Arts and the Board of Pharmacy would meet four (4) times in FY 08 to promulgate rules and regulations related to medication therapeutic plans. It is estimated that each board member will receive per diem and reimbursement for expenses for each day they conduct board business. Meeting costs are estimated to be $3,224 per board for FY 08. Subsequent fiscal years' meeting costs are estimated at $390 per fiscal year for each board.

Beginning in FY 09, the Pharmacy Board estimates 13% or 630 of the currently licensed Bachelor of Science (BS) Pharmacists will apply for a certification of medication therapeutic authority. It is estimated that applicants will submit an estimated $10 application fee for a total of $6,300 and 19 applicants will submit applications in subsequent fiscal years, for $190 in revenue per fiscal year. The estimated cost of processing the initial applications and licensure set up is $6,062.

It is assumed that the Pharmacy Well-Being Committee will meet five (5) times the first year to promulgate rules and set up the Pharmacy Well-Being Program. It is assumed that the per diem and travel expenses for the Pharmacy Well-Being Committee will be approximately $7,389 in FY 08 and $683 in subsequent years.

Based on the costs associated with the Dental Well-Being Committee and the Physician Well-Being Committee, the Pharmacy Board believes the costs to implement the Pharmacy Well-Being Committee will be approximately $3,200 per licensee enrolled in the program. The Board estimates the number of licensees who will participate in the program to be 53, for a cost of $169,600 ($3,200 X 53).

The proposal does not specify how the Well-Being Committee will be paid for.

ASSUMPTION (continued)

Oversight assumes the Board of Pharmacy would require participants to pay fees to cover the costs of treatment and/or adjust pharmacy licensing fees, if necessary, to cover the costs of the Pharmacy Well-Being Program.

This proposal will impact total state revenue.

FISCAL IMPACT - Small Business

This proposal may impact small business pharmacies.

FISCAL DESCRIPTION

This proposal provides for pharmacists who submit proof of completion of a board-approved clinical study program beyond a bachelor of science degree to obtain a certificate of medication therapeutic plan authority. Pharmacists who receive a certificate of medication therapeutic plan authority may engage in designing, initiating, implementing, and monitoring of a medication therapeutic plan prescribed by a physician. The state board of registration for the healing arts and the state board of pharmacy are to jointly promulgate rules regulating the use of protocols for prescription orders for medication therapy services.

This proposal provides that the Board of Pharmacy may establish a Pharmacy Well-Being Committee for identification, intervention, treatment, and rehabilitation of pharmacists who may be impaired by illness, substance abuse, or as a result of any physical or mental condition. The board may enter into a contractual agreement with a nonprofit corporation or association for the purpose of creating, supporting and maintaining the committee.

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 Insurance, Financial and Professional Regulation

Department of Health and Senior Services

Office of Secretary of State

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                February 13, 2007