NOTE:  As provided in LFC policy, this report is intended only for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used for other purposes.

 

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

 

 

SPONSOR:

Fidel

 

DATE TYPED:

2/4/03

 

HB

 

 

SHORT TITLE:

Pharmacy Board Control and Supervision

 

SB

187

 

 

ANALYST:

Maloy

 

REVENUE

 

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

 

 

 

 

$89.0

See Narrative 

Recurring

OSF

 

($89.0)

 

Recurring

OSF

 

SOURCES OF INFORMATION

 

Responses Received From

Pharmacy Board of Regulation and Licensing Department

 

SUMMARY

 

Synopsis of Bill

 

Senate Bill 187 reverses the Pharmacy Board from the Regulation and Licensing Department (RLD), and provides that all funds, records, supplies, equipment, furniture and other property belonging to the board, but held by RLD, shall be transferred to the board.

 

Significant Issues

 

  • The Pharmacy Board is one of approximately 25 boards administratively attached to RLD. 

 

  • The boards’ revenue is self-generated and does not go to the general fund. Their revenue is OSF.

 

  • Many of the smaller boards cannot function as stand-alone entities because they are unable to generate enough operating revenue through exam, licensing and renewal fees. For this reason, the administrative functions and costs of the  boards were consolidated some time ago.  This means many of the larger boards, such as the Pharmacy Board, “underwrite” some of the administrative costs of the smaller boards. 

 

 

 

FISCAL IMPLICATIONS

 

  • SB 187 contains no appropriation.

 

This bill is revenue neutral.  This estimated $89.0 generated by the Pharmacy Board each year would no longer flow to the Regulation and Licensing Department for administrative support.  The Board would retain this money to its independent operations.

 

ADMINISTRATIVE IMPLICATIONS

 

To remove the Pharmacy Board from RLD may impact the ability of other boards to function administratively.  It may also set a precedent for other larger boards to pursue.

 

POSSIBLE QUESTIONS

 

  • Is their another means of structuring the overall boards framework that can address the issues and needs of both the large and small boards?

 

  • Are their other boards that wish to be removed from RLD?

 

  • If the larger boards are removed from RLD, can the smaller boards re-consolidate administratively and function effectively?  

 

SJM/njw:prr