PROPOSED RULEMAKINGS
STATE BOARD
OF PODIATRY
[49 PA. CODE CH. 29]
Biennial Renewal Fees
[32 Pa.B. 946] The State Board of Podiatry (Board) proposes to amend § 29.13 (relating to fees) by raising the biennial renewal fee for podiatrists to read as set forth in Annex A.
A. Effective Date
The proposed amendment will be effective upon publication of the final-form regulation. The new fee will take effect January 1, 2003.
B. Statutory Authority
The proposed amendment is authorized under section 14 of the Podiatry Practice Act (act) (63 P. S. § 42.14).
C. Background and Purpose
Section 14(a) of the act requires the Board to increase fees by regulation if the revenues raised by fees, fines and civil penalties are not sufficient to meet expenditures over a 2-year period. In addition, section 14(b) of the act requires the Board to increase fees by regulation in the amount that adequate revenues are raised to meet the required enforcement efforts, when the fees established by the Board are inadequate to meet the minimum enforcement efforts required by the act.
The Board last increased its biennial renewal fees on December 26, 1992. 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 podiatry. In addition, the Board is generally mandated to promote public health, safety and welfare, which is accomplished through Board initiatives and coordination with other agencies and departments in the 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 May 28, 2001, meeting, the Board reviewed a summary of it's revenues and expenses. The summary, prepared by the Bureau of Professional and Occupational Affairs Revenue Office and the Bureau of Finance and Operations, presented in the following format, shows that the Board must raise the biennial renewal fee to meet or exceed projected expenditures and thereby comply with section 14(a) and (b) of the act.
Actual Projected Projected Projected Projected Projected Projected Financial Status FY 99-00 FY 00-01 FY 01-02 FY 02-03 FY 03-04 FY 04-05 FY 05-06 Beginning Balance 265,847.48 119,757.48 180,465.27 (21,534.73) 5,340.27 (208,659.73) (195,784.73) Revenue 14,910 248,875 15,000 248,875 15,000 248,875 15,000 Prior Yr. Returned Funds 0 1,832.79* 0 0 0 0 0 Total Revenue 280,757.48 370,465.27 195,465.27 227,340.27 20,340.27 40,215.27 (180,784.73) Expenses 161,000 190,000 217,000 222,000 229,000 236,000 243,000 Remaining Balance 119,757.48 180,465.27 (21,534.73) 5,340.27 (208,659.73) (195,784.73) (423,784.73) *Estimated
As the chart indicates, a deficit of approximately $22,000 is projected at fiscal year ending June 30, 2002. The Board must generate revenues of about $556,000 to meet its anticipated expenditures through FY 2001-2002 in addition to recovering the anticipated deficit. The Board proposes to recover that deficit during the 2003-2005 biennial period. The Board anticipates that the proposed new fees and the increased user fees which are being promulgated separately would enable it to recapture the current deficit, meet its estimated expenditures for the FY 2003-2005 biennial cycle and generate a surplus of approximately $83,000 at the end of the 2003-2005 biennial period.
If the biennial fee is not increased, the Department of State anticipates that a significant deficit will occur during FY 2003-2004. This deficit is compounded and more critical since this Board fiscally stands on its own and is not contained within the Professional Licensure Augmentation Account (PLAA). Since this Board is not a part of the PLAA, it cannot utilize any fiscal backing to carry it through budget shortfalls. Therefore, any budget shortfall will stop operations of this Board until a positive balance is maintained.
D. Description of Proposed Amendment
The following table outlines the affected fee and proposed amendment:
Application Current Fee Proposed Fee Biennial renewal fee $175 $395 E. Compliance with Executive Order 1996-1
In compliance with Executive Order 1996-1, ''Regulatory Review and Promulgation,'' in drafting and promulgating the proposed amendment, the Board considered the proposed amendment as both required by law and the least restrictive means of covering the costs of services required to be performed by the Board.
F. Fiscal Impact and Paperwork Requirements
The proposed amendment would increase the biennial renewal fee for podiatrists in this Commonwealth, but, otherwise, should have no fiscal impact on the private sector, the general public or political subdivisions.
The proposed amendment would require the Board to alter some of its forms to reflect the new biennial renewal fees; however, the proposed amendment should create no additional paperwork for the private sector.
G. Sunset Date
The Board continuously monitors the cost effectiveness of its regulations. Therefore, no sunset date has been assigned.
H. Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on January 31, 2002, the Board submitted a copy of this proposed rulemaking to the Independent Regulatory Review Commission (IRRC) and the Chairpersons of the Senate Consumer Protection and Professional Licensure Committee and the House Professional Licensure Committee. In addition to submitting the proposed rulemaking, 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.
Under section 5(g) of the Regulatory Review Act, if IRRC has objections to any portion of the proposed rulemaking, it will notify the Board within 10 days of the close of the Committees' review period. The notification shall specify the regulatory review criteria that have not been met by the portion of the proposed rulemaking to which an objection is made. The Regulatory Review Act specifies detailed procedures for review, prior to final publication of the rulemaking, by the Board, the General Assembly and the Governor of objections raised.
I. Public Comment
Interested persons are invited to submit written comments, suggestions or objections regarding this proposed rulemaking to Gina Bittner, Board Administrator, State Board of Podiatry, P. O. Box 2649, Harrisburg, PA 17105-2649, gbittner@state.pa.us within 30 days following publication of this proposed rulemaking in the Pennsylvania Bulletin.
JEFFREY S. GERLAND, D.P.M.,
ChairpersonFiscal Note: 16A-445. 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 29. STATE BOARD OF PODIATRY
LICENSES § 29.13. Fees.
(a) The schedule of fees charged by the Board is as follows:
* * * * *
Biennial renewal of license $[175] 395 * * * * *
[Pa.B. Doc. No. 02-255. Filed for public inspection February 15, 2002, 9:00 a.m.]
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