LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS 200 W. Washington St., Suite 301 Indianapolis, IN 46204 (317) 233-0696 iga.in.gov FISCAL IMPACT STATEMENT LS 6749 NOTE PREPARED: Dec 27, 2021 BILL NUMBER: SB 177 BILL AMENDED: SUBJECT: Veterinary Medicine. FIRST AUTHOR: Sen. Leising BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State XDEDICATED FEDERAL Summary of Legislation: Indiana Board of Veterinary Medicine: The bill changes the name of the Indiana Board of Veterinary Medical Examiners to the Indiana Board of Veterinary Medicine (IBVM). State Veterinarian: The bill provides that the State Veterinarian: (1) serves as the chief administrative officer of the IBVM; (2) performs the duties delegated by the IBVM to the State Veterinarian; and (3) provides technical advice and assistance to the IBVM. The bill also establishes the Indiana Center for Animal Policy to facilitate the coordination of regulatory duties of the Board of Animal Health (BOAH) and the IBVM. It provides that the State Veterinarian is the chief administrative officer of the center and the BOAH. BOAH: The bill requires that the BOAH (not the Professional Licensing Agency (PLA)) perform certain administrative functions for the IBVM. Veterinary Investigations: The bill provides that the IBVM (not the Division of Consumer Protection, Office of the Attorney General (AG)) shall investigate complaints against individuals regulated by the IBVM. It allows the IBVM to adopt emergency rules. It provides that the IBVM, and the State Veterinarian if authorized by the IBVM, may subpoena witnesses and compel the production of certain documents as part of an investigation. Veterinary Medicine Fund: The bill changes the name of the Veterinary Investigative Fund to the Veterinary Medicine Fund. It makes various changes to the fund. It provides for transition and makes conforming SB 177 1 changes. Effective Date: July 1, 2022. Explanation of State Expenditures: Administrative Support of the IBVM: The PLA currently provides staffing and administrative support for the IBVM, which the bill transfers to the BOAH, the State Veterinarian, and to the IBVM itself (see Additional Information). Transferring administration of the IBVM to the other entities is expected to result in the shifting of an estimated $51,000 in staff salary and administrative costs from the PLA. These costs include the approximate salary and benefits for one customer service representative, as well as board member travel reimbursements for meetings. Actual costs could vary to the extent current staff of the other entities are able to perform administrative duties for the IBVM within the entities’ existing levels of resources. Current PLA administrative expenditures are paid from General Fund appropriations; however, the bill requires expenditures for administering the IBVM to be paid from the renamed Veterinary Medicine Fund. Veterinary Investigations: Workload will shift from the AG’s Division of Consumer Protection to the IBVM to investigate complaints regarding the practice of veterinary medicine with an expired license or registration or other veterinary practice violations. If the complaint includes a violation in addition to these, the bill provides that the AG is to investigate. The bill provides that the IBVM, and the State Veterinarian if authorized by the IBVM, may subpoena witnesses and compel the production of certain documents as part of an investigation. Under a memorandum of understanding by the AG, the BOAH, and the IBVM, the IBVM may refer a complaint to and provide funds to the AG for investigation and enforcement. The AG’s office reports the following number of veterinary investigative files opened in calendar years 2019 to 2021. Veterinary Investigative Files Opened by Year and Type Calendar Year License or Registration Conduct 2019 6 58 2020 6 66 2021 12 60 The bill also grants authority to the IBVM to adopt emergency rules if they determine that an emergency presents a risk to the delivery of competent, honest, and principled veterinary services. Additional Information: State Veterinarian: The bill transfers duties regarding the IBVM from the PLA to the State Veterinarian (as well as any other duties delegated by the IBVM), such as corresponding for the IBVM, permanent record keeping of all board proceedings, financial record keeping, administering the Veterinary Medicine Fund, record keeping of all license and registration applications, and maintaining a register of all persons currently licensed (veterinarians) or registered (veterinary technicians). SB 177 2 Additionally, the bill provides that the State Veterinarian is the chief administrative officer of the BOAH, the IBVM, and the new Indiana Center for Animal Policy. The center is composed of the BOAH and the IBVM and is to facilitate the coordination of regulatory duties of the two entities through a memorandum of understanding. Personnel of the two entities may be jointly used with allocation of costs between the two as set by the applicable administrative standards. The center is to engage in joint outreach and education activities to support the needs of veterinary practitioners, animal owners, and other stakeholders. To the extent that activities are streamlined, workload and expenditures could be reduced. However, if joint activities provide difficulties or reveal increased opportunities for statewide efforts regarding animal health, workload and expenditures could increase. The State Veterinarian is authorized by the bill to contract for additional technology, research, or human resources on behalf of either entity with approval of funds. IBVM: The bill transfers duties from the PLA to the IBVM including the holding of annual examinations for veterinary licensing and veterinary technician registrations, notifying examinees of results, issuing licenses and registrations, mailing notices regarding license and registration renewals, and issuing the renewals. BOAH: The bill transfers duties from the PLA to the BOAH regarding the IBVM including the collection of fees for veterinary licensing and veterinary technician registrations, providing professional and clerical staffing and supplies, and administering the Impaired Veterinary Health Care Provider Fund. Explanation of State Revenues: Veterinary Medicine Fund: Currently, revenues raised from licensing fees are deposited in the General Fund. A total of $355,600 in General Fund revenue was collected from biennial licensing fees in FY 2020 and FY 2021. All funds collected for veterinary licensing and registration are to be deposited into the Veterinary Medicine Fund, which would be nonreverting until the fund reaches $750,000. Assuming annual administrative costs of $51,000 for the IBVM and license fee collections consistent with recent years, between $259,000 and $272,000 in revenue in excess of costs per biennium would be deposited in the Veterinary Medicine Fund, rather than the General Fund, until a $750,000 balance is reached. The fund would be expected to exceed a $750,000 balance and begin reverting to the General Fund after FY 2028. Explanation of Local Expenditures: Explanation of Local Revenues: State Agencies Affected: Board of Animal Health; Division of Consumer Protection, Office of the Attorney General; Indiana Board of Veterinary Medical Examiners; Professional Licensing Agency; State Veterinarian. Local Agencies Affected: Information Sources: Auditor’s Data; Jared Bond, Office of Attorney General; Professional Licensing Agency; State Staffing Tables; https://www.in.gov/pla/professions/indiana-board-of-veterinary-medical-examiners/ https://www.in.gov/pla/file-a-complaint/ Fiscal Analyst: Heather Puletz, 317-234-9484; Adam White, 317-234-1360. SB 177 3