Fiscal Note - SB 0383 - Revises Controlled Substances Law
L.R. NO. 1430-01
BILL NO. SB 383 w/ SCA 1
SUBJECT: Crimes and Punishment
TYPE: Original
DATE: April 24, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
General Revenue ($2,051,332) ($72,530) ($74,416)
Professional
Registration Fees $0 $0 $0
State Board of
Pharmacy $4,380 $5,026 $6,847
Total Estimated
Net Effect on All
State Funds ($2,046,952) ($67,504) ($67,569)
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Pharmacy Rebate ($3,041,518) $0 $0
Total Estimated
Net Effect on All
Federal Funds ($3,041,518) $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials from the Office of Administration, the State Public Defender, the
Office of Prosecution Services, the Department of Public Safety - Office of
Director, the Office of State Courts Administrator, the Office of Attorney
General, and the Missouri Sheriffs Association assume this proposal would not
fiscally impact their agencies.
Department of Health (DOH) officials state the additional chemical identified
and added as listed or precursor chemicals (chemicals used in the manufacture
of controlled substances) increases the number of listed chemicals from
twenty to thirty-five. DOH states the Listed Chemicals Program has not been
funded in previous fiscal years. DOH further states the number of
methamphetamine labs seized has grown from six in FY92 to twelve in FY93 to
fourteen in FY94 to sixty-six in FY95 to three hundred forty-five in FY96.
One Investigator II ($26,544) and one Clerk Typist II ($16,488) would be
required to initiate the program. The Investigator II would be responsible
for inspecting sites for adequate security, record keeping, and compliance
with state and federal listed chemical requirements. The Investigator would
also investigate any complaint or claim of diversion or misuse of listed
chemicals for other than legitimate distribution or use. This information
would be reviewed and communicated to the Bureau of Narcotics and Dangerous
Drugs administrator and appropriate law enforcement agency if needed. The
Clerk Typist II would screen, process, and enter applications, registrations,
and chemical distribution data. Equipment ($8,323) would include office
furniture and personal computers for two FTE. Expenses ($17,800) would
include office and communication expenses, travel expenses, and rental space
for two FTE.
Oversight assumes no additional rental space due to DOH moving into a new
building.
Officials from the Department of Economic Development (DED)-Professional
Registration (DPR) assume the proposed legislation would result in the
registration of 5,600 pharmacy technicians annually, with a projected annual
growth rate of 3%. The registration fee and renewal fee would be set at $15.
To implement the legislation, DPR asserts the need for one Licensure
Technician I (1 FTE at $16,488 per year) to provide clerical and technical
support directly to the Principal Assistant and the Board. This position
would also be responsible for maintaining records of any investigations,
board review, establishment and maintenance of the employment
disqualification list, as well as necessary correspondence to the registrant.
This FTE would also coordinate and process annual renewals. Additionally,
DPR would need a .25 Clerk Typist I (.25 FTE at $14,856 per year) to be added
to the Cash Receiving Room to process all applications for license renewals.
This position would not be needed until FY 99 due to no renewals being
received in FY 98.
DPR assumes the existing licensing system would be adequate to handle an
additional 5,600 technicians per year.
DPR has estimated there would be two mailings per year for a total of $3,584
and annual printing costs of $500. Office and communication expenses and
equipment were based on estimated existing costs within the Division.
DPR estimates General Revenue transfers to be $49,112 per year, based on the
transfer amount for the State Board of Embalmers and Funeral Directors, a
board of similar size.
It is assumed the Pharmacy Fund would reimburse the PR Fees Fund for the
personal service and operating expense of the .25 Clerk Typist I.
Additionally, DPR has included rental costs to accommodate the additional
FTEs. However, Oversight assumes DPR would locate new FTEs in existing
facilities and has not included rental costs as a result of this proposal.
Oversight has also adjusted equipment requests based on OA guidelines.
Officials from the Department of Social Services (DOS) assume the component
of the proposal relating to the change in the record retention requirements
for pharmacies from five to three years would impact the Division of Medical
Services' (DMS) drug rebate collections. The DMS is currently pursuing drug
rebate claims from manufacturers back to 1992. The pharmacy records are
requested as evidence of the prescriptions billed. Drug rebate collections
would be impacted for the two years of lost data from the pharmacies. The
effect would be for the years 1992 through 1994, because evidence has been
collected and compiled since 1995. Therefore, from 1995 to the present, the
DMS has data to use as evidence for disputed drug rebate claims. The data
compiled for 1992 to 1994 to settle drug rebates with manufacturers is
estimated to support rebates of $6,461,538. The loss of revenue from rebates
for the affected time period, September 1992 to December 1994, would be
$5,025,641. This would have to be collected over a period of two years.
Current regulations promulgated by the DMS require all providers to keep
records for a period of five years. An amendment would be necessary to allow
pharmacies to retain records for a period of three years.
Officials from the Office of the Secretary of State (SOS) assume the proposed
legislation would require the printing of additional pages in the Missouri
Register and the Code of State Regulations and have estimated a one-time
publishing and distribution cost of $3,630 for FY 1998. The actual financial
impact could be substantially more or less than this estimate, depending on
the actual rule making activity of the board. The impact of this proposal in
future years is unknown and depends upon the frequency and length of rules
filed, amended or withdrawn. While this bill alone would not require SOS to
acquire additional staff, SOS assumes the cumulative effect of additional
bills that require rule making activity may, in the aggregate, necessitate
additional staff. However, Oversight assumes SOS could increase fees to
cover any additional costs, per Section 536.033, RSMo.
Officials from the Department of Public Safety - Missouri State Highway
Patrol and the Department of Corrections did not respond to our fiscal impact
request.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
GENERAL REVENUE FUND
Costs - Department of Health
Personal service (2 FTE) ($36,742) ($45,211) ($46,341)
Fringe benefits ($10,482) ($12,899) ($13,221)
Expense and equipment ($19,985) ($14,420) ($14,854)
Total Costs Department of Health ($67,209) ($72,530) ($74,416)
Loss-Department of Social Services
Pharmacy Rebate Program ($1,984,123) $0 $0
ESTIMATED NET EFFECT ON
GENERAL REVENUE FUND ($2,051,332) ($72,530) ($74,416)
PROFESSIONAL REGISTRATION
FEES FUND
Revenue-Division of Professional Registration (DPR)
Transfer from State Board of Pharmacy Fund $0 $5,168 $5,237
Costs-DPR
Personal Service (.25 FTE) $0 ($3,902) ($4,000)
Fringe Benefits $0 ($1,113) ($1,141)
Equipment and Expense $0 ($153) ($96)
Total Costs - DPR $0 ($5,168) ($5,237)
ESTIMATED NET EFFECT TO
PROFESSIONAL REGISTRATION
FEES FUND $0 $0 $0
STATE BOARD OF PHARMACY FUND
Income-Division of Professional Registration (DPR)
License Fees/ Renewals $84,000 $86,520 $89,115
Costs-DPR
Personal Service (1 FTE) ($14,078) ($17,323) ($17,756)
Fringe Benefits ($4,016) ($4,942) ($5,066)
Expense and Equipment ($12,414) ($4,949) ($5,097)
Transfer to PR Fees Fund $0 ($5,168) ($5,237)
Other Costs/GR Transfers ($49,112) ($49,112) ($49,112)
Total Costs - DPR ($79,620) ($81,494) ($82,268)
STATE BOARD OF PHARMACY FUND $4,380 $5,026 $6,847
FEDERAL FUNDS
Loss-Department of Social Services
Pharmacy Rebate Program ($3,041,518) $0 $0
ESTIMATED NET EFFECT TO
FEDERAL FUNDS ($3,041,518) $0 $0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
$0 $0 $0
FISCAL IMPACT - Small Business
Small businesses would be expected to be fiscally impacted to the extent that
they would incur additional administrative costs due to the requirements of
this proposal.
DESCRIPTION
This proposal would make various changes to the state's drug laws. A
controlled substance analogue would be treated like a controlled substance
under state law (RSMo 195.022). In effect, the same criminal penalties would
apply to such analogues. Various new drugs that have been identified in
clandestine labs would be added to the drug schedules. Any person who
reports information to the Department of Health in good faith would not be
subject to civil damages (RSMo 195.045). The Department of Health may revoke
or suspend a practitioner's registration to prescribe drugs if the
practitioner has: 1) had his license to practice suspended or revoked; 2)
furnished false information in any application; 3) been convicted of a state
or federal felony drug law; or 4) has violated any law or regulation pursuant
to Sections 195.005 to 195.425, RSMo. The Department would revoke or suspend
a manufacturer's registration to distribute controlled substances if the
manufacturer's federal registration has been revoked or suspended. The
Department would place any drugs under seal at the time it revokes or
suspends a registration. This proposal would also include the following
restrictions upon doctors: 1) A doctor would not accept a controlled
substance from a patient unless the doctor originally dispensed the
controlled substance; and 2) A doctor would not prescribe or dispense a
controlled substance for himself except in an emergency. The term
"apothecary" would be replaced by the term "pharmacist."
In addition, the proposal would require technicians and auxiliary personnel
employed by a pharmacy to register with the State Board of Pharmacy. The
Board would maintain an employment disqualification list of the names of all
pharmacy technicians with certain violations.
The continuing education requirements would be revised. Also, the State
Board of Pharmacy would be allowed to remit testing fees directly to a
testing service, if no part of the fee is remitted to the Board from the
testing service.
The proposed legislation would grant the State Board of Pharmacy subpoena
power to subpoena witnesses and issue subpoena duces tecum to require the
production of documents, records, reports and similar material in connection
with any investigation or hearing.
The Board of Pharmacy would be authorized to promulgate regulations
establishing various permit classifications and standards for the operation
of pharmacies.
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 Social Services
Office of Administration
State Public Defender
Office of Prosecution Services
Department of Public Safety
Office of Director
Department of Economic Development
Division of Professional Registration
Office of State Courts Administrator
Missouri Sheriffs Association
Department of Health
Office of Attorney General
Office of Secretary of State
Missouri Sheriff's Association
NOT RESPONDING: Department of Public Safety - Missouri State Highway Patrol,
and the Department of Corrections
This Fiscal Note is not an official copy and should not be quoted or cited.