Colorado Legislative Council Staff

STATE

REVISED FISCAL NOTE

(Replaces Fiscal Note dated March 30, 1998)

TABOR Refund Impact

State General Fund and Cash Fund Revenue and Cash Fund Expenditure Impact


Drafting Number:

Prime Sponsor(s):

LLS 98-432

Rep. T. Williams

Date:

Bill Status:

Fiscal Analyst:

April 7, 1998

House 2nd Reading

Will Meyer (866-4976)

 

TITLE:            CONCERNING THE REGULATION OF THE PRACTICE OF PHARMACY BY THE STATE BOARD OF PHARMACY, AND, IN CONNECTION THEREWITH, REGULATING THE SUPERVISION OF NONPHARMACIST PERSONNEL BY PHARMACISTS AND ALLOWING THE STATE BOARD OF PHARMACY TO IMPOSE FINES AGAINST LICENSEES FOR VIOLATIONS OF STATUTES REGULATING PHARMACISTS, AND MAKING AN APPROPRIATION THEREFOR.


Summary of Legislation


            The provisions of this bill would make changes to the regulation of the practice of pharmacy. Beginning February 1, 1999, the bill would allow a pharmacist manager to delegate certain specific tasks to a person who is not a pharmacist or pharmacy intern. Current law defines these tasks to include responsibility for compounding, dispensing, labeling, delivery, storage, and distribution of drugs and devices and the maintenance of proper records. As provided for in the bill, such person would be an “unlicensed assistant”, under the direction of the pharmacist manager, who meets the qualifications set out in the bill, and has been issued a letter by the pharmacist manager stating that such unlicensed assistant is employed by the pharmacist manager’s prescription drug outlet.


STATE FISCAL IMPACT SUMMARY

FY 1998/99

FY 1999/2000

State Revenues

General Fund - Fine Revenues

Division of Registrations’ Cash Fund


$4,000

$5,096


$4,000

$1,044

State Expenditures

General Fund

Division of Registrations’ Cash Fund



$5,096



$1,044

FTE Position Change

Contract

Contract

Local Government Impact — None.


            The bill, as amended in the House Appropriations Committee, would require a pharmacist manager who employs an unlicensed assistant to file with the board a list of names of all unlicensed assistants who are employed by the pharmacist manager. The bill would authorize the State Board of Pharmacy to determine a uniform standard number of unlicensed assistants for whom a pharmacist may have responsibility when the pharmacist and unlicensed assistants are engaged in dispensing drugs. The bill would limit the number of persons whom a pharmacist may supervise, not including ancillary personnel, to two persons who are either pharmacy interns or unlicensed persons. The bill would require all persons who dispense drugs or devices to a patient in this state to be licensed or registered with the state. The bill would authorize the board to impose a fine of $500 for the first violation, and $1,000 for a second or subsequent violation, of any of the provisions of this article regulating pharmacists.


            The bill will become effective at 12:01 a.m. on the day following the ninety-day period after adjournment sine die of the General Assembly, or on the date of the official declaration of the vote of the people as proclaimed by the Governor, if a referendum petition is filed pursuant to Article V, Section 1 (3) of the State Constitution.



State Revenues


            Based on the scope of complaints currently filed each year with the board, the number that result in discipline, and the number of egregious cases for which the board would likely add a fine to its present discipline, it is estimated that the board would impose fines of $500 in 8 cases each year. This would generate $4,000 annually in revenues. It is assumed these fines would be deposited in the General Fund.


            The board would assess an annual fee to register out-of-state persons who dispense drugs or devices to patients in Colorado. Upon further review, it is assumed that the board would adjust the registration and renewal fees of $275 for new registrations and $150 for renewals, currently assessed for Prescription Drug Outlets (PDOs). Based on an estimate of the average number of out-of-state pharmacies that are licensed in Kansas, New Mexico, Utah, and Wyoming, it is estimated that 130 persons will submit an application. The fees will be adjusted and set by the board to cover the additional costs of the bill. It is estimated that the change in fees would generate $5,096 in FY 1998/99 and $1,044 in FY 1999/2000.

 

TABOR Refund Impact


            Section 20 of Article X of the Colorado Constitution, limits the maximum annual percentage increase in state fiscal year spending. Once total state revenue from all sources that are not specifically excluded from fiscal year spending exceeds these limits for the fiscal year, the state constitution requires that the excess shall be refunded in the next fiscal year unless voters approve a revenue change as an offset. Based on the current Legislative Council economic forecast, it is projected that the state will be in a TABOR refund position during each of the next five fiscal years. Any increase or decrease in state revenue from changes in fees, fines, licenses, or other revenue sources will affect the amount of the state revenue to be refunded. 



State Expenditures


            It is assumed that 725 letters will be filed with the board during FY 1998/99 and that 365 letters would be refiled each year due to pharmacy manager changes and unlicensed assistant job turnover.


            Upon further review, it is estimated that 10 minutes of a temporary services clerical would be required for each letter filed plus additional time to handle inquiries related to the provisions of this bill. It is estimated that this would cost $1,350 (121 hours of an Administrative Assistant II, 68/1 @ $11.16 per hour) in FY 1998/99 and $681 (61 hours of an Administrative Assistant II, 68/1 @ $11.16 per hour). 


            The provisions of the bill would require all persons who dispense drugs or devices to a patient in this state to be licensed or registered with the state. Based on the amount of time to process and review new applications, it is estimated that this would cost $3,746 (107.5 hours of an Administrative Assistant II, 68/1 @ $11.16 per hour and 97.5 hours of a Pharmacist Inspector II, 103/1 @ $26.12 per hour) in FY 1998/99 and $363 (32.5 hours of an Administrative Assistant II, 68/1 @ $11.16 per hour).


            The board would require additional expenditures of $5,096 CF in FY 1998/99 and $1,044

CF in FY 1999/2000 to implement the provisions of the bill.



Spending Authority


            The fiscal note implies that the Department of Regulatory Agencies would require additional cash fund spending authority of $5,096 (CF) in FY 1998/99.

 


Departments Contacted 


            Regulatory Agencies