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F I S C A L I M P A C T R E P O R T





SPONSOR: Sanchez, M. DATE TYPED: 02/27/01 HB
SHORT TITLE: Increase Oriental Medicine License Fees SB 536/aSFL#1
ANALYST: Valdes




REVENUE



Estimated Revenue
Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY01 FY02
See Narrative

Below

See Narrative

Below

Recurring Other State Funds



(Parenthesis ( ) Indicate Revenue Decreases)



SOURCES OF INFORMATION



Regulation and Licensing Department



SUMMARY



Synopsis of SFL #1 Amendment



This amendment changes the license renewal period from biennial to annual.



Synopsis of Original Bill



Senate Bill 536 increases the ceiling on five licensing fees, defines the fee ceiling for three fees currently authorized by statutes and changes the license renewal interval from biennial to annual.



Significant Issues



The amendment would require annual instead of two-year license renewals.



The Board of Acupuncture and Oriental Medicine is currently charging the maximum fees authorized by statutes. The increases are necessary so that the Board will have the ability to offset cost increases in future years.

The licensing application fee cap would be raised from $500 to $800, temporary licensing fee cap from $300 to $500, exam fee cap from $350 to $700 and the educational program approval fee from $400 to $600.



The new fees authorized include application for extended prescriptive authority ($500), application for externship supervisor registration ($500) and application for extern certification ($500).

FISCAL IMPLICATIONS



The Board is currently paying $400 per applicant for its practical exam but is limited by statute to the current fee cap of $350 assessed to each applicant. The Board needs to offset this loss by increasing the exam fee and the associated fee cap in statute. The total projected deficit based on existing exam fees is $3,100 in the current fiscal year. In FY02 the deficit is projected at $3,800 which is significant based on the Board's annual operating budget of $167,000.



The new fees proposed will generate $3,800 based on 75 projected candidates.



Other new revenue is unknown until the Board decides to raise fees within the new fees proposed by the bill.



MV/ar