Date Requested: February 04, 2016
Time Requested: 02:18 PM
Agency: Health and Human Resources, Department of
CBD Number: Version: Bill Number: Resolution Number:
2106 Introduced HB4395
CBD Subject: Health


0407 - Central Office General Administrative Fund

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 repeal the current regulation of opioid treatment programs and replace it with a program to regulate medication-assisted treatments of varying types. It also creates licenses for all medication-assisted treatment programs, including clinics and providers, and provides minimum standards for treatment and requirements for providers, provides for regulation and oversight by the Office of Health Facility Licensure and Certification (OHFLAC) and grants OHFLAC access to the Controlled Substance Monitoring Database for use in certification, licensure and regulation of health facilities. The estimated cost of this legislation to the Department's Office of Inspector General (OIG), Office of Health Facility Licensure and Certification (OHFLAC) is $0 in FY2016 as costs will be absorbed in the first year. OHFLAC currently licenses and regulates nine opioid treatment programs through the existing regulatory structure and will be able to use existing resources initially to begin the operation of the program. Depending upon the number of clinics and providers ultimately subject to regulation, the Department expects to spend approximately $391,295 in subsequent years.

Fiscal Note Detail

Effect of Proposal Fiscal Year
Fiscal Year
(Upon Full
1. Estmated Total Cost 0 0 391,295
Personal Services 0 0 295,875
Current Expenses 0 0 95,420
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 4,600 10,000

Explanation of above estimates (including long-range effect):

The proposed legislation will regulate medication-assisted treatment programs throughout the state. Currently, OHFLAC regulates only opioid treatment programs and uses surveyors in its behavioral health program to perform annual surveys of licensed entities. It is anticipated that in year one, FY2017, OHFLAC will absorb the costs of the program as its existing surveyors transition from opioid treatment program regulation to medication-assisted treatment regulation. In subsequent years, depending on the number of clinics and providers subject to inspection, beginning in FY2018 as the program expands, it is anticipated that OHFLAC will need an additional 1 - 4 Surveyor FTEs (average salary and benefits is $42,705) and 1 Pharmacist II FTE (average salary and benefits is $125,055). Total personal service costs for OHFLAC is estimated at $167,760 - $295,875 upon full program implementation. Current expense to accommodate OHFLAC travel, training, and office supplies is estimated at $27,986 - $69,965 per year ($13,993 per FTE). Rent and utilities for the new OHFLAC staff is estimated at $4,502 - $11,255 per year ($2,251 per FTE). There is a one-time cost of $3,290 - $8,225 for the purchase of computer equipment ($1,645 per FTE). To accommodate the additional staff members, OHFLAC will need to lease two additional vehicles at a cost of $14,200 (includes vehicle cost, maintenance and gas). The anticipated revenues from license fees is estimated at $4,600 for FY2016 and $10,000 for FY2017. These figures are based upon the licensing fees collected from regulation of opioid treatment programs in FY2015. It is unknown how many licensees may fall under the new regulation, but it is anticipated that additional revenues will be collected in subsequent years.


    Person submitting Fiscal Note: Karen L. Bowling
    Email Address: