PROPOSED RULEMAKING
STATE BOARD OF VETERINARY MEDICINE
[49 PA. CODE CH. 31]
Biennial Renewal Fees
[30 Pa.B. 2378] The State Board of Veterinary Medicine (Board) proposes to amend § 31.41 (relating to schedule of fees) to read as set forth in Annex A. The proposed amendment would increase the biennial license renewal fee for veterinarians from $105 to $225 and for animal health technicians from $30 to $60.
Effective Date
The new fees would be effective on final publication in the Pennsylvania Bulletin and will apply to the biennial renewal period commencing December 1, 2000.
Statutory Authority
Section 13(a) of the Veterinary Medicine Practice Act (act) (63 P. S. § 485.13(a)), requires the Board to fix the fees required for renewal of licenses and certificates by regulation. In addition, section 13(b) of the act requires the Board to increase fees by regulation to meet or exceed projected expenditures if the revenues raised by fees, fines and civil penalties are not sufficient to meet expenditures.
Background and Need for Amendment
The Board's current biennial license renewal fees were established by regulation in 1995. The Board is required by law to support its operations from revenue it generates from fees, fines and civil penalties. The act mandates that the Board protect the public by adopting rules and regulations that govern the practice of veterinary medicine and administer and enforce the laws, rules and regulations that relate to the practice of veterinary medicine. In addition, the Board is generally mandated to promote public health, safety and welfare, which is accomplished though Board initiatives and coordination with other agencies and departments in this Commonwealth. The proposed fees are comparable to the renewal fees charged in surrounding states and should cause no competitive disadvantage to this Commonwealth.
The Board raises virtually all its revenue through fees. The biennial license renewal fee is the most substantial revenue generating fee of the fees charged by the Board. If the Board anticipates that its revenue will not meet its expenditures, the Board must increase its revenue.
At its July 15, 1999, Board meeting, the Offices of Revenue and Budget presented a summary of the Board's revenues and expenses for Fiscal Years 1997-1998 and 1998-1999. The summary, presented in the following table format, demonstrated that the Board must raise fees to meet or exceed projected expenditures to comply with section 13(b) of the act.
1997 beginning balance (245.09) FY97-98 revenue 22,392.00 FY97-98 expenses 179,789.44 1998 beginning balance (157,642.53) FY98-99 revenue 363,112.00 FY98-99 expenses 287,011.29 1999 beginning balance (81,541.82) As the foregoing indicates, at the close of FY 1998-1999, the Board's expenses exceeded its revenues by $81,541.82. The Budget Office estimates that in FY 1999-2000, the deficit will increase to $341,681.10 if fees are not increased. The Budget Office anticipates that the proposed new fees will enable the Board to recapture the current deficit and meet its estimated expenditures for the 2000-2002 biennial cycle.
The increases in the Board's biennial expenses occurred primarily in law enforcement costs and legal office costs. Law enforcement (the Bureau of Enforcement and Investigation) saw an increase from 898.75 hours expended in FY 1994-1995 to 1,184.8 hours expended in FY 1998-1999. Corresponding to this increase, law enforcement expenditures increased from approximately $70,000 in FY 1994-1995 to just over $95,000 in FY 1997-1998.
The legal office (division of the Bureau of Professional and Occupational Affairs) spent 1,485.9 hours in FY 1997-1998 on matters related to the Veterinary Board. No figure was available for FY 1994-1995. Legal office expenditures increased from approximately $37,000 in FY 1994-1995 to just under $61,000 in FY 1997-1998.
The legal office saw an increase in both number and complexity of cases closed in calendar years 1996 through 1998. In 1996, the Board issued four adjudications relating to continuing education violations and one in a reciprocal disciplinary action.
In 1997, the Board issued one adjudication in a reciprocal disciplinary action and issued two orders in a complicated malpractice case. In 1998, the Board issued one adjudication involving a civil prosecution and two involving unlicensed practice. In 1998, the Board issued six adjudications: one for performing surgery without a license, two for dispensing medication without a license, one for practicing on a lapsed license, one reciprocal disciplinary action and one for gross negligence/malpractice.
Description of Proposed Amendment
Based upon the expense and revenue estimates provided to the Board, the Board proposes to amend its fee schedule in § 31.41 to increase the fee for biennial renewal of licenses for veterinarians from $105 to $225 and increase the fee for animal health technicians from $30 to $60. By this increase, the Board will recoup the 1999 deficit and offset the projected deficit of $341,681.10 in FY 1999-2000.
Compliance with Executive Order 1996-1
In accordance with Executive Order 1996-1 (February 6, 1996), in drafting and promulgating the proposal the Board considered the proposal as both required by law and the least restrictive means of covering the costs of services required to be performed by the Board.
Fiscal Impact
The proposed amendment will increase the biennial renewal fee for veterinarians and animal health technicians. A veterinarian will pay an additional $120 for biennial renewal. An animal health technician will pay an additional $30 for biennial renewal. The proposed amendment should have no other fiscal impact on the private sector, the general public or political subdivisions.
Paperwork Requirements
The proposed amendment will require the Board to alter some of its forms to reflect the new biennial renewal fees; however, the proposed amendment should not create additional paperwork for the private sector.
Sunset Date
The act requires that the Board monitor its revenue and cost on a fiscal year and biennial basis. Therefore, no sunset date has been assigned.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on May 2, 2000, the Board submitted a copy of this proposed amendment to the Independent Regulatory Review Commission (IRRC) and the Chairpersons of the House Professional Licensure Committee and Senate Consumer Protection and Professional Licensure Committee for review and comment. In addition to submitting the proposed amendment, the Board has provided IRRC and the Committees with a copy of a detailed Regulatory Analysis Form prepared by the Board in compliance with Executive Order 1996-1, ''Regulatory Review and Promulgation.'' A copy of this material is available to the public upon request.
If IRRC has objections to any portion of the proposed amendment, it will notify the Board within 10 days after the expiration of the Committees' review period. The notification shall specify the regulatory review criteria which have not been met by that portion. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the regulation, by the Board, the General Assembly and the Governor of objections raised.
Public Comment
Interested persons are invited to submit written comments, suggestions or objections regarding this proposed rulemaking to Robert Kline, Administrator, State Board of Veterinary Medicine, P. O. Box 2649, Harrisburg, PA 17105-2649, within 30 days following publication of this proposed rulemaking in the Pennsylvania Bulletin.
BRIAN V. HARPSTER, V.M.D.,
ChairpersonFiscal Note: 16A-579. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 49. PROFESSIONAL AND VOCATIONAL STANDARDS
PART I. DEPARTMENT OF STATE
Subpart A. PROFESSIONAL AND OCCUPATIONAL AFFAIRS
CHAPTER 31. STATE BOARD OF VETERINARY MEDICINE
FEES § 31.41. Schedule of fees.
An applicant for a license, certificate or service shall submit a payment at the time of the request under the following fee schedule:
Veterinarians:
* * * * *
Biennial renewal $[105]225 * * * * * Animal health technicians:
* * * * *
Biennial renewal $[30]60 * * * * *
[Pa.B. Doc. No. 00-793. Filed for public inspection May 12, 2000, 9:00 a.m.]
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