FISCAL NOTE
Date Requested: February 12, 2025
Time Requested: 08:34 PM |
| Agency: |
Health Facility Licensure & Certification, Office of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1837 |
Introduced |
HB2175 |
|
|---|
| CBD Subject: |
Health |
|---|
|
FUND(S):
5172 - Health Facility Licensing Account, 5178 - Public Health Law Fund
Sources of Revenue:
Special Fund
Legislation creates:
Increases Revenue From Existing Sources
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to consolidate and update the behavioral health center licensing provisions and requirements. This update would separate behavioral health centers based on treatment settings, residential or non-residential. This division would allow better regulation of the facilities based on the treatment setting. Modernization of licensing fees and civil money penalties are to address issues related to behavioral health centers.
This legislation will have no effect on the estimated total costs to the Office of Inspector General's (OIG) Office of Health Facility Licensure and Certification (OHFLAC). This legislation does not change the Behavioral Health Program’s survey and certification requirements. As such, the estimated total expenses will not be impacted.
This legislation increasing the licensure fees for Behavioral Health Facilities does not affect the current FY 2025 fee schedule. As a result, the estimated total revenue for FY 2025 is not impacted.
The Office of Inspector General estimates increased revenue for this bill of $163,920 for FY2026 and $334,670 ongoing.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
163,920 |
334,670 |
Explanation of above estimates (including long-range effect):
As of February 13, 2025, the total number of Behavioral Health Facilities operating within the state of West Virginia is 683. Of these, 227 are Residential Behavioral Health Centers and 456 are Non-Residential Behavioral Health Centers. The current (FY 2025) annual licensure fee for Behavioral Health Facilities is $10 for both initial and renewal licenses. This bill increases this amount to $250 licensure fee for initial licenses and first renewal, $500 licensure fee for the second license renewal, and a $500 licensure fee for Change of Ownership. The initial license is a 12-month license, while the renewals are two-year licenses.
For FY 2026, the initial/first renewal licensure fee per facility is $250, resulting in an estimated revenue of $170,750 ($250 fee x 683 facilities). This is an increase of $163,920 over the current estimated revenue of $6,830, which is based on a $10 licensure fee ($10 fee x 683 facilities). As the renewal licenses are two-year licenses, a decrease in estimated revenues for FY 2027 will occur as the facilities purchasing a two-year renewal license will not be required to purchase a license for the second year of the term. However, once this first renewal license expires, the fee increases to $500 for the second and any subsequent renewal, two-year license. As a result, upon full implementation in FY 2028, the estimated revenues will increase to $341,500 ($500 fee x 683 facilities). This is an increase of $334,670 over the estimated revenue of $6,830, which is based on the current $10 licensure fee ($10 fee x 683 facilities).
These revenue estimates do not consider the opening and closing of additional Behavioral Health Facilities within the state of West Virginia as these numbers cannot be estimated. Additionally, the number of Change of Ownership registrations cannot be estimated and therefore are not included in the revenue estimates.
The two-year renewal registration fee is adjusted annually based on the Consumer Price Index. Based on current data, an increase in the renewal registration fee is estimated for future years.
Additionally, the OHFLAC Director, in consultation with the Inspector General, may impose civil money penalties (CMPs) to address violations. Each day of continuing violation after conviction shall be considered a separate violation. CMPs may be imposed for the following violations, along with the amounts:
-Failing to take corrective action to correct a violation after being cited; CMP not to exceed $10,000 per violation.
-Conducting practices which clearly give rise to imminent danger or serious harm or the immediate risk of imminent danger or serious harm; CMP not to exceed $10,000 per violation.
-Conducting practices resulting in hospitalization, serious bodily injury, or death of a client; CMP not to exceed $50,000 per violation.
-Operating an unlicensed behavioral health center; CMP not to exceed $5,000 per day.
-Failing to apply for a new license upon a change of ownership; CMP not to exceed $5,000 per violation.
-Obtaining a license through misrepresentation or fraud, or making or causing to be made any false representation; CMP not to exceed $20,000 per violation.
At this time, we are unable to project any violations or deficiencies prior to complaint investigations; therefore, the anticipated revenue and economic impact of the CMPs on the associated special revenue account cannot be determined."
Memorandum
Within the HB2175 narrative, page 10, lines 99-100 read, "In addition to the set fee, the annual renewal fee shall be adjusted on the first day of June of each year…" This language suggests that the renewal license and associated fee is issued annually; however, the renewal licenses are two-year licenses. Recommend clarifying the language to indicate that the renewal licenses and associated fees are due every two years, rather than annually. Suggested language is as follows: "In addition to the set fee, the renewal fee shall be adjusted annually on the first day of June of each year..." (This language also appears on page 14, lines 100-101.)
Person submitting Fiscal Note: Ann V. Urling
Email Address: osafiscalnotes@wv.gov