PROPOSED RULEMAKING
STATE BOARD OF EXAMINERS OF NURSING HOME ADMINISTRATORS
[49 PA. CODE CH. 39]
Biennial Renewal Fees
[35 Pa.B. 2402] The State Board of Examiners of Nursing Home Administrators (Board) proposes to amend § 39.72 (relating to fees) to read as set forth in Annex A. The proposed rulemaking would increase the biennial license renewal fee for nursing home administrators from $108 to $297.
Effective Date
The new fees will be effective upon final-form publication in the Pennsylvania Bulletin and will apply to the biennial renewal beginning July 1, 2006.
Statutory Authority
Section 7.1(a) of the Nursing Home Administrators License Act (act) (63 P. S. § 1107.1(a)) 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 Board expenditures.
Background and Need for Amendments
The Board's current biennial license renewal fee for nursing home administrators was established by regulation at 24 Pa.B. 6564 (December 31, 1994). Under section 7.1(a) of the act, the Board is required by law 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 biennial renewal fees fund nearly all of the Board's costs.
At Board meetings in July and December 2004, the Department of State's Bureau of Finance and Operations (BFO) presented a summary of the Board's revenue and expenses for Fiscal Years (FY) 2001-2002 through 2003-2004, and projected revenue and expenses through FY 2010-2011. The BFO projected a deficit of $128,711.53 in FY 2004-2005, a deficit of $125,711.53 in FY 2005-2006, a deficit of $319,711.53 in FY 2006-2007, a deficit of $331,711.53 in FY 2007-2008, a deficit of $541,711.53 in FY 2008-2009, a deficit of $569,711.53 in FY 2009-2010 and a deficit of $795,711.53 in FY 2010-2011. The BFO recommended that the Board raise fees to meet or exceed projected expenditures, in compliance with section 7.1(a) of the act.
The Board's review of its actual and projected expenses for the past 5 years revealed significant shortfalls in the areas of enforcement and investigation, legal office expenses and legislative and regulatory analysis. For example, despite annual increases in projected expenses, actual enforcement and investigation costs were $13,242.21 from FY 2002-2003 to 2003-2004. The actual expenses for the legal office and legislative and regulatory analysis increased $18,879.37 and $7,975.38, respectively, from FY 2002-2003 to 2003-2004. Overall increased expenditures in these program areas have resulted from a steady increase in the number of complaints opened each year regarding nursing home administrators and, therefore, greater investigative, enforcement and legal activity. At the same time, the Board's licensee population has declined by 400 licensees over the past 5 years, decreasing the Board's biennial revenue. The BFO anticipates that the proposed new biennial renewal fees will enable the Board to recapture the current deficit and meet its estimated expenditures for at least 10 years. Biennial renewal fees were last raised from $85 to $108 at 24 Pa.B. 6564. The 1994 increase was first applied to the 1996 biennial renewal.
In determining the fee, the Board also considered the renewal fees charged to nursing home administrators in the six surrounding states. The Board found that the proposed increase to $297 would be lower than two fees and higher than four fees charged by contiguous states, and therefore consistent with the renewal fees charged in the surrounding states.
Description of Proposed Amendments
The proposed rulemaking would increase the biennial renewal fee for all nursing home administrators from $108 to $297. The BFO anticipates that the proposed new fees will enable the Board to recapture the current deficit and meet its estimated expenditures through the 2010-2011 biennial cycle.
The proposed fees will affect a total licensee population of approximately 1,826 nursing home administrators. The Board estimates these fees will generate $572,322 in biennial revenue. If the proposed rulemaking is effectuated for the July 1, 2006, renewal, the revenue would be used to recapture projected deficits totaling $795,711.53 by the end FY 2010-2011 and to fund anticipated expenditures from FY 2005-2006 through at least FY 2010-2011.
Fiscal Impact
The proposed rulemaking will increase the biennial renewal fee for nursing home administrators. The proposed rulemaking should have no other fiscal impact on the private sector, the general public or political subdivisions.
Paperwork Requirements
The proposed rulemaking will require the Board to alter some of its forms to reflect the new biennial renewal fee. However, the proposed rulemaking should not create additional paperwork for the private sector.
Sunset Date
The act requires that the Board monitor its revenue and costs on a FY 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 March 29, 2005, the Board submitted a copy of this proposed rulemaking and a copy of a Regulatory Analysis Form to the Independent Regulatory Review Commission (IRRC) and to the Chairpersons of the Senate Consumer Protection and Professional Licensure Committee and the House Professional Licensure Committee. A copy of this material is available to the public upon request.
Under section 5(g) of the Regulatory Review Act, IRRC may convey any comments, recommendations or objections to the proposed rulemaking within 30 days of the close of the public comment period. The comments, recommendations or objections must specify the regulatory review criteria 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 of comments, recommendations or objections raised.
Public Comment
Interested persons are invited to submit written comments, suggestions or objections regarding this proposed rulemaking to Christina Stuckey, Administrator, State Board of Examiners of Nursing Home Administrators, P. O. Box 2649, Harrisburg, PA 17105-2649 within 30 days following publication of this proposed rulemaking in the Pennsylvania Bulletin. Reference No. 16A-6210 (Biennial Renewal Fees) when submitting comments.
BARRY S. RAMPER, II,
ChairpersonFiscal Note: 16A-6210. 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 39. STATE BOARD OF EXAMINERS OF NURSING HOME ADMINISTRATORS
RENEWAL § 39.72. Fees.
The following is a schedule of fees charged by the Board:
Biennial renewal of nursing home administrators license$[108] 297
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[Pa.B. Doc. No. 05-766. Filed for public inspection April 22, 2005, 9:00 a.m.]
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