FISCAL NOTE
Date Requested: March 14, 2017
Time Requested: 01:07 PM |
| Agency: |
Health and Human Resources, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2595 |
Introduced |
HB2999 |
|
|---|
| CBD Subject: |
Health, Professions and Occupations |
|---|
|
FUND(S):
0407 - CENTRAL OFFICE GENERAL ADMINISTRATIVE FUND, 5172 - HEALTH FACILITY LICENSING ACCOUNT
Sources of Revenue:
General Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to establish an application, licensing and regulatory system for the operation of out-patient substance abuse counseling programs.
The estimated cost of this legislation to the Department's Office of Inspector General (OIG), Office of Health Facility Licensure and Certification (OHFLAC) is estimated at approximately $242,376 in FY2018, and $235,796 in subsequent years. The FY2018 revenue is estimated at $348,000, and $58,000 after full implementation.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2017
Increase/Decrease
(use"-") |
2018
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
242,376 |
235,796 |
| Personal Services |
0 |
170,820 |
170,820 |
| Current Expenses |
0 |
71,556 |
64,976 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
348,000 |
58,000 |
Explanation of above estimates (including long-range effect):
Beginning in FY2018, it is anticipated that OHFLAC will need an additional 4 Surveyor FTEs at $170,820 (average salary and benefits is $42,705 X 4 FTEs). Current expense to accommodate OHFLAC travel, training, and office supplies is estimated at $55,972 ($13,993 X 4 FTEs). Rent and utilities for the new OHFLAC staff is estimated at $9,004 ($2,251 X 4 FTEs). There is a one-time cost of $6,580 for the purchase of computer equipment ($1,645 X 4 FTEs).
OHFLAC estimates there will be approximately 200 out-patient substance abuse counseling centers. There will be an initial licensure/application fee of $250, a one-time inspection fee of $1,200, and the annual registration fees will be based on the following sliding scale: 1-50 patients is $250, 51-100 patients is $300, 101-200 patients is $400, and 201 patients or more is $500. It is estimated that 120 (60%) centers will serve 1-50 patients, 50 centers (25%) will serve 51-100 patients, 20 centers (10%) will serve 101-200 patients, and 10 centers (5%) will serve 201 patients or more. Therefore, the FY2018 estimated revenue is $348,000 (120 X $250 = $30,000 + 120 X $250 = $30,000 + 120 X $1,200 = $144,000; 50 X $250 = $12,500 + 50 X $300 = $15,000 + 50 X $1,200 = $60,000; 20 X $250 = $5,000 + 20 X $400 = $8,000 + 20 X $1,200 = $24,000; 10 X $250 = $2,500 + 10 X $500 = $5,000 + 10 X $1,200 = $12,000) and $58,000 upon full implementation (120 X $250 = $30,000 + 50 X $300 = $15,000 + 20 X $400 = $8,000 + 10 X $500 = $5,000).
Memorandum
These regulations are duplicative, as OHFLAC already regulates behavioral health providers and medication assisted treatment providers that offer out-patient substance abuse counseling.
Person submitting Fiscal Note: Bill J. Crouch, Cabinet Secretary
Email Address: DHHRBudgetOffice@wv.gov