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PA Bulletin, Doc. No. 24-889

PROPOSED RULEMAKING

STATE BOARD OF
VETERINARY MEDICINE

[49 PA. CODE CH. 31]

Fee Increase

[54 Pa.B. 3618]
[Saturday, June 29, 2024]

 The State Board of Veterinary Medicine (Board) proposes to amend § 31.41 (relating to schedule of fees), pertaining to fees for veterinarians and certified veterinary technicians, and add § 31.104 (relating to schedule of fees), pertaining to fees for registered animal protection organizations (APO) and euthanasia technicians, to read as set forth in Annex A. This proposed rulemaking will provide for an incremental increase to all application fees and renewal fees over the upcoming three biennial renewal cycles.

Effective Date

 This proposed rulemaking will be effective upon publication of the final-form rulemaking in the Pennsylvania Bulletin. The initial graduated increase for application fees will be implemented on the date of publication of the final-form rulemaking in the Pennsylvania Bulletin, and then increased on December 1, 2026, and again on December 1, 2028.

 Biennial renewal fees will increase by 3%, beginning with the December 1, 2024—November 30, 2026, biennial renewal period. This fee increase will impact licenses and certificates that expire on November 30, 2024.

 Biennial renewal fees will increase again by 3% for the December 1, 2026—November 30, 2028, biennial renewal period. This fee increase will impact licenses and certificates that expire on November 30, 2026.

 Biennial renewal fees will increase again by 3% for the December 1, 2028—November 30, 2030, renewal period. This fee increase will impact licenses and certificates that expire on November 30, 2028.

Statutory Authority

 Under section 13(a) of the Veterinary Medicine Practice Act (act) (63 P.S. § 485.13(a)), the Board is required to set fees required for examination, licensure, certification, registration, renewal of licenses and registrations, renewal of certificates and temporary permits. Under section 13(b) of the act, if the revenues raised by fees, fines and civil penalties imposed under the act are not sufficient to meet expenditures over a 2-year period, the Board shall increase those fees by regulation so that the projected revenues will meet or exceed projected expenditures.

 The Commissioner is appointed by the Governor and has a number of powers and duties relative to the various professional and occupational licensing boards and commissions. Specifically, under section 810(a)(7) of The Administrative Code of 1929 (71 P.S. § 279.1(a)(7)), the Commissioner has the power and duty, ''[u]nless otherwise provided by law, to fix the fees to be charged by the several professional and occupational examining boards within the department.''

Background and Purpose

 Under section 13(b) of the act, the Board is required to support its operations from the revenue it generates from fees, fines and civil penalties. In addition, the act provides that the Board must increase fees if the revenue raised by fees, fines and civil penalties is not sufficient to meet expenditures over a 2-year period. The Board raises virtually all of its revenue through biennial renewal fees. The Board's current biennial license/certificate renewal fees for veterinarians and veterinary technicians were established in 2010 at 40 Pa.B. 4757 (August 21, 2010).

 The Board receives an annual report from the Department of State's Bureau of Finance and Procurement (BFP) regarding the Board's income and expenses. The BFP presented the following information to the Board at its public meeting on January 7, 2022.

 In Fiscal Years (FY) 2018-2019 and 2019-2020, the Board incurred expenses of $1,345,557.59 and $1,397,676.97, respectively, and received $2,239,892.27 and $155,537.20 in revenue, respectively. In other words, over that 2-year time frame, the Board's total expenses ($2,743,234.56) outpaced its total revenue ($2,395,429.47) by $347,805.09. The Board's overall remaining balance at the end of FY 2019-2020 was $1,751,478.31.

 In FYs 2020-2021 and 2021-2022, the Board's expenses were $1,347,700.03 and $1,268,000.00 (projected), respectively, with revenues of $2,281,280.29 and $156,000.00 (projected), respectively. In other words, over that 2-year time frame, the Board's total expenses ($2,615,700.03) outpaced its total revenue ($2,437,280.29) by $178,419.74. The Board's overall remaining balance at the end of FY 2021-2022 was $1,573,058.57.

 In FYs 2022-2023 and 2023-2024, the Board's expenses were projected to be $1,388,000.00 and $1,306,000.00, respectively, with revenues projected to be $2,486,000 and $164,000, respectively. In other words, over that 2-year time frame, the Board's total expenses ($2,694,000) are projected to outpace its total revenue ($2,650,000) by $44,000. The Board's overall remaining balance at the end of FY 2023-2024 is projected to be $1,529,058.57.

 According to the BFP's projections, if the Board were to keep its current fee structure in place (no increases for any of its fees), the Board's biennial revenue would remain at $2,645,000 for each of the next 6 years. However, its expenses are projected to grow each year, so that the amount the Board would be spending above and beyond its revenue would become increasingly larger each successive year. The Board's projected revenue would fall short of meeting its expenses by $131,000 in FY 2024-2025/FY 2025-2026, then by $213,000 in FY 2026-2027/FY 2027-2028, and then by $299,000 in FY 2028-2029/FY 2029-2030. Those projections also show a significant reduction in the Board's overall remaining balance, which by the end of FY 2029-2030 would be down to $886,058.57.

 Given that its revenues generated by fees, fines and civil penalties are not sufficient to meet expenditures over a 2-year period, the Board voted on January 7, 2022, to adopt the proposed graduated fee increases for application and biennial renewal fees contained in the BFP's report.

Description of Proposed Amendments

 The BFP recommended a graduated fee increase that would be achieved over three biennial renewal periods rather than immediately. The fee increases are set so that the fees collected during each biennium more accurately reflect the anticipated costs for that period. The Board's proposal would create the following fee schedule over the next three renewal cycles:

Biennial Renewal Fees
Current December 1, 2024—November 30, 2026 Biennial Registration Fee December 1, 2026—November 30, 2028 Biennial Registration Fee December 1, 2028—November 30, 2030 Biennial Registration Fee and thereafter
Veterinarians $360 $371 $382 $393
Veterinary technicians $100 $103 $106 $109
Registered APOs  $52  $54  $56
Euthanasia technicians  $26  $27  $28

 Despite the proposed increases, even the highest proposed renewal fee in 2028 would be lower than some surrounding states (Connecticut and Rhode Island), but will be higher than other surrounding states (Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Ohio, Vermont and West Virginia). The highest known biennial renewal fee for veterinarians in the Northeast quadrant of the United States is Rhode Island at $580, while the lowest known biennial renewal fee is New Hampshire at $150. Some boards do not announce current renewal fees until it is time for licensure renewal.

 Application fees are proposed to be raised to reflect the true administrative cost to the Board to process each individual application. The proposed application fees are then increased on a graduated basis so that the application fees collected during each biennium reflect the anticipated costs of processing applications for that biennium. These fees are designed to cover the cost to process applications and are borne by individual applicants. Actual cost calculations for application fees are based upon the following formula:

number of minutes to perform the function
×
pay rate for the classification of the personnel performing the function
+
a proportionate share of administrative overhead

 The BFP recommends increasing the current application fees on a graduated basis for veterinarians, veterinary technicians and continuing education (CE) program approval. Furthermore, the BFP recommends increasing the application fee for two applications related to new classes of registrants/licensees created by the Animal Destruction Method Authorization Law (ADMAL) (3 P.S. §§ 328.101—328.1102): registered APOs and licensed euthanasia technicians. The initial fees for these new classes of registrants/licensees were included in the Board's proposed rulemaking (16A-5726) which was published at 52 Pa.B. 1980 (April 2, 2022). The Board expects to promulgate the final-form rulemaking (16A-5726), which adds Subchapter B and §§ 31.101—31.130, and begin registering APOs and licensing euthanasia technicians in the spring of 2024. Being new classes of licensure and at the Board's request, the BFP recommended not increasing the application fees until December 2026 for these categories (rather than December 2024) to allow a larger number of initial applicants to take advantage of the lower, initial application fee and because the total number of registered APOs and licensed euthanasia technicians remains speculative. Finally, the proposed fee for APO reinspection will be contemporaneously increased with the fee for application for initial registration of an APO, which includes the initial inspection fee. Only those APOs that fail the initial inspection are expected to pay the reinspection fee. Accordingly, with regard to reinspections, the ultimate cost to the regulated community is expected to be minimal.

 The ''duplicate license or certificate'' fee ($5) will not be increased because it is set by statute, specifically section 226 of the Bureau of Professional and Occupational Affairs Fee Act (BPOA Fee Act) (63 P.S. § 1401-226). Similarly, the ''late renewal'' fee ($5 per month or part of month) will not be increased because it is set by section 225 of the BPOA Fee Act (63 P.S. § 1401-225). Finally, the ''certification of scores or hours'' fee will not be increased because: 1) the BFP did not suggest that it be increased; and 2) this fee is all but obsolete—the Board having no record of ever having charged this fee. In November of 2000, the North American Veterinary Licensing Examination (NAVLE), administered by the International Council for Veterinary Assessment (ICVA), replaced paper-and-pencil tests such as the National Board Examination (NBE) and Clinical Competency Test (CCT) as the sole computer-based examination for veterinary medical licensure in the United States and Canada. The Board established the ''certification of scores or hours'' fee in June of 2000 for those licensees who passed the NBE and CCT prior to 2000 and sought licensure in another jurisdiction, so that the Board could certify those scores and provide them to another jurisdiction, if requested. See 30 Pa.B. 3044 (June 17, 2000). Licensure by reciprocity/endorsement, coupled with the fact that NAVLE scores are certified by the exam administrator, ICVA, has practically eliminated the need for the ''certification of scores or hours'' fee. However, because a licensee may possibly request that the Board certify NBE or CCT scores/hours, the Board has decided not to eliminate or raise this fee in this proposed rulemaking.

 This proposed rulemaking will create the following application fee schedule over three renewal cycles:

Application Fees (and APO Reinspection Fee)
Current Upon Publication
as Final
Effective
December 1, 2026
Effective
December 1, 2028
Veterinarian $35 $125 $131 $138
Veterinary technicians $35  $78  $82  $86
APO registration $244 $256 $269
APO reinspection $216 $228 $241
Euthanasia technicians  $87  $91  $96
CE program approval $35 $108 $113 $119

 Despite the proposed increases, the Board's new application fees will be lower than some surrounding states (Connecticut, Delaware, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Ohio and West Virginia) but will be higher than other surrounding states (Maine, Rhode Island and Vermont). The highest known application fee for veterinarians in the Northeast quadrant of the United States is Rhode Island at $580, while the lowest known application fee for veterinarians is Maine at $95.

 The BFP also recommends that the fee for verification of licensure be incrementally increased over three renewal cycles:

Verification of Licensure Fee
Current Upon Publication as Final December 2026 December 2028
Verification of licensure $15 $20 $21 $22

 Although some surrounding states do not charge a verification of licensure fee, the Board's new verification of licensure fee will be on par with the states that do charge this fee (Delaware ($35), Maryland ($25), Massachusetts ($15), New Hampshire ($20), New Jersey ($25), New York ($25), Rhode Island ($50), Vermont ($25) and West Virginia ($25)).

Fiscal Impact

 This proposed rulemaking will not have any fiscal impact on the general public.

 This proposed rulemaking will increase application and biennial renewal fees on a graduated basis. Board applicants, licensees and certificate holders will be required to comply with the regulation. The fees may be paid by applicants, licensees or certificate holders, or may be paid by their employers, should their employers choose to do so. This proposed rulemaking should have no other fiscal impact on the private sector, the general public or political subdivisions of the Commonwealth.

 Approximately 1,025 applicants biennially will be impacted by the increased application fees. Specifically, the number of applicants affected are as follows: (Note: numbers provided for APOs and euthanasia technicians are estimated because the Board is expected to issue registrations/licenses to these individuals in the spring of 2024).

Veterinarians: 533
Veterinary technicians: 398
APOs:  10
Euthanasia technicians:  50
CE programs:  34

 Applicants will be affected as follows:

Current Upon Publication
as Final
Effective
December 1, 2026
Effective
December 1, 2028
Veterinarian $35 × 533 =
$18,655
$125 × 533 = $66,625
(+$47,970)
$131 × 533 = $69,823
(+$51,168)
$138 × 533 = $73,554
(+$54,899)
Veterinary technicians $35 × 389 = $13,615 $78 × 389 = $30,342
(+$16,727)
$82 × 389 = $31,898
(+$18,283)
$86 × 389 = $33,454
(+$19,839)
Registered APOs $244 × 50 = $12,200 $244 × 10 = $2,440 $256 × 10 = $2,560
(+$120)
$269 × 10 = $2,690
(+$250)
APO reinspection $216 $216 $228 $241
Euthanasia technicians $87 × 50 = $4,350 $87 × 50 = $4,350 $91 × 50 = $4,550
(+$200)
$96 × 50 = $4,800
(+$450)
CE program approval $35 × 34 = $1,190 $108 × 34 = $3,672
(+$2,482)
$113 × 34 = $3,84
(+$2,652)
$119 × 34 = $4,046
(+$2,856)

 Based upon the graduated application fee increases, the total economic impact per biennial renewal period is as follows:

FYs 2024-2025 and 2025-2026: $67,179
FYs 2026-2027 and 2027-2028: $72,423
FYs 2028-2029 and 2029-2030: $78,294
Total: $217,896

 Approximately 8,850 licensees/certificate holders will be impacted by the increased biennial renewal fees:

Veterinarians: 5,576
Veterinary technicians: 3,174
APOs:    50
Euthanasia technicians:    50

 Currently licensed individuals will be affected as follows:

Current December 1, 2024—November 30, 2026 biennial registration fee December 1, 2026—November 30, 2028 biennial registration fee December 1, 2028—November 30, 2030 biennial registration fee and thereafter
Veterinarians $360 × 5,576 = $2,007,360 $371 × 5,576 = $2,068,696 $382 × 5,576 = $2,130,032 $393 × 5,576 = $2,191,368
Veterinary technicians $100 × 3,174 = $317,400 $103 × 3,174 = $326,922 $106 × 3,174 = $336,444 $109 × 3,174 = $345,966
Registered APOs $50 × 50 = $2,500 $52 × 50 = $2,600 $54 × 60 = $3,240 $56 × 70 = $3,920
Euthanasia technicians $25 × 50 = $1,250 $26 × 50 = $1,300 $27 × 100 = $2,700 $28 × 150 = $4,200

 Based upon the previously listed biennial renewal fee increases, the economic impact is as follows:

FYs 2024-2025 and 2025-2026:  $71,008
FYs 2026-2027 and 2027-2028: $142,156
FYs 2028-2029 and 2029-2030: $213,444
Total: $426,608

 Thus, the total economic impact of the proposed fee increase to applicants, licensees, certificate holders, registrants or employers, if employers choose to pay application or licensing fees, is $644,504.

Paperwork Requirements

 This proposed rulemaking will require the Board to alter some of its electronic forms to reflect the new application and biennial renewal fees; however, this proposed rulemaking should not create additional paperwork for the private sector.

Sunset Date

 The Board continuously monitors its regulations as required by Executive Order 1996-1 (4 Pa. Code §§ 1.371—1.382 (relating to regulatory review and promulgation)). 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 June 12, 2024, the Board submitted a copy of this proposed regulation and a copy of the Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and to the chairperson of the Consumer Protection and Professional Licensure Committee of the Senate and the chairperson of the Professional Licensure Committee of the House of Representatives. A copy of this material is available to the public upon request.

 Under section 5(g) of the Regulatory Review Act, IRRC may convey comments, recommendations or objections to the proposed rulemaking within 30 days of the close of the public comment period. The comments, recommendations or objections shall specify the regulatory review criteria in section 5.2 of the Regulatory Review Act (71 P.S. § 745.5b) which have not been met. 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.

Public Comment

 Interested persons are invited to submit written comments, suggestions or objections regarding this proposed rulemaking to the Regulatory Counsel, State Board of Veterinary Medicine, P.O. Box 69523, Harrisburg, PA 17106-9523, RA-STRegulatoryCounsel@pa.gov, within 30 days of publication of this proposed rulemaking in the Pennsylvania Bulletin. Reference ''Regulation No. 16A-5732 (Fees),'' when submitting comments.

THOMAS N. GARG, VMD, 
Chairperson
State Board of Veterinary Medicine

ARION R. CLAGGETT, 
Acting Commissioner
Bureau of Professional and Occupational Affairs

Fiscal Note: 16A-5732. No fiscal impact; 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

 (Editor's Note: The designation of Subchapter A, which is proposed to be added in this proposed rulemaking, was also proposed to be added in proposed rulemaking 16A-5726 published at 52 Pa.B. 1980 (April 2, 2022). Final-form rulemaking 16A-5726 was approved by IRRC at its June 20, 2024, meeting.)

Subchapter A. VETERINARIANS, CERTIFIED VETERINARY TECHNICIANS AND VETERINARY ASSISTANTS

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:

[Veterinarian fees for services:
Application to original, reactivated, reissued or reciprocal license $35
Application for continuing education program approval $35
Verification of licensure $15
Certification of scores or hours $25
Duplicate license $5
Late renewal fee per month or part of month $5
Veterinarian biennial renewal:
Biennial renewal fee $360
Certified veterinary technician fees for services:
Application for certification $35
Application for continuing education program approval $35
Verification of certification $15
Certification of scores or hours $25
Late renewal fee per month or part of month $5
Duplicate license $5
Certified veterinarian technician biennial renewal:
Biennial renewal fee $100]

(a) Application fees (original, reactivated, reissued, reciprocal or endorsement):

 (Editor's Note: The blank in the first column of effective dates refers to the date of publication of the final-form rulemaking in the Pennsylvania Bulletin).

Effective
______
Effective
December 1, 2026
Effective
December 1, 2028
Veterinarian $125 $131 $138
Certified veterinary technician $78 $82 $86
Continuing education program approval $108 $113 $119

(b) Biennial renewal fees:

December 1, 2024—
November 30, 2026 biennial renewal fee
December 1, 2026— November 30, 2028 biennial renewal fee December 1, 2028— November 30, 2030
and thereafter
biennial renewal fee
Veterinarian $371 $382 $393
Certified veterinary technician $103 $106 $109

(c) Miscellaneous fees:

 (Editor's Note: The blank in the first column of effective dates refers to the date of publication of the final-form rulemaking in the Pennsylvania Bulletin).

Effective
______
Effective
December 1, 2026
Effective
December 1, 2028
Verification of licensure or certification $20 $21 $22

Duplicate license or certificate $5

Late renewal fee per month or part of month $5

Certification of scores or hours $25

 (Editor's Note: Subchapter B and § 31.104 are proposed to be added in proposed rulemaking 16A-5726 published at 52 Pa.B. 1980 (April 2, 2022). Final-form rulemaking 16A-5726 was approved by IRRC at its June 20, 2024, meeting. This proposed rulemaking also proposes to add Subchapter B and an updated version of § 31.104, which are printed in regular type to enhance readability.)

Subchapter B. ANIMAL PROTECTION ORGANIZATIONS AND EUTHANASIA TECHNICIANS

GENERAL PROVISIONS

§ 31.104. Schedule of fees.

 The Board will charge the following fees for the administration of this subchapter:

 (a) Application fees (original, reactivated, reissued, reciprocal or endorsement):

 (Editor's Note: The blank in the first column of effective dates refers to the date of publication of the final-form rulemaking in the Pennsylvania Bulletin).

Effective
______
Effective
December 1, 2026
Effective
December 1, 2028
Registered Animal Protection Organization (includes initial inspection fee) $244 $256 $269
Euthanasia technician  $87  $91  $96

 (b) Biennial renewal fees:

December 1, 2024—November 30, 2026 biennial renewal fee December 1, 2026—November 30, 2028 biennial renewal fee December 1, 2028—November 30, 2030 and thereafter biennial renewal fee
Certified Animal Protection Organization $52 $54 $56
Euthanasia technician $26 $27 $28

 (c) Miscellaneous fees:

 (Editor's Note: The blank in the first column of effective dates refers to the date of publication of the final-form rulemaking in the Pennsylvania Bulletin).

Effective
______
Effective
December 1, 2026
Effective
December 1, 2028
Verification of licensure or certification  $20  $21  $22
Animal Protection Organization reinspection fee (for certificate of registration) $216 $228 $241

Duplicate license or certificate $5

Late renewal fee per month or part of month $5

[Pa.B. Doc. No. 24-889. Filed for public inspection June 28, 2024, 9:00 a.m.]



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