FISCAL NOTE
Date Requested: March 07, 2023
Time Requested: 02:15 PM |
| Agency: |
Health and Human Resources, WV Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3502 |
Amendment |
HB3306 |
|
|---|
| CBD Subject: |
Health |
|---|
|
FUND(S):
0525 - CONSOLIDATED MEDICAL SERVICES FUND, 5207 - GIFT, GRANTS AND DONATIONS, 8723 - CONS FED FUNDS CONSOLIDATED MEDICAL SERVICES FUND, 5111 - RYAN BROWN ADDICTION PREVENTION AND RECOVERY FUND
Sources of Revenue:
Other Fund General, Special and Federal
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to move the Office of Drug Control Policy (ODCP) under the direction of the Governor.
The amendment also creates a Sober Living Home/Recovery Residence Taskforce; continues and revises the Information Technology platform; and provides for the inclusion of an enforcement provision for the Office of Drug Control Policy.
The Department anticipates a fiscal impact of $1,153,900 ($153,900 state and $1,000,000 federal) for the first year related to the ODCP section of this Legislation.
The amended bill provides authority to continue and expend from Hospital Services Revenue Account which was inadvertently repealed in HB4113 during the 2022 Legislative Session. This Account is the special revenue account utilized by the Department's Health Facilities to receive and utilize funds from billings to insurance carriers, Medicaid, Medicare, etc. for the operation of the Health Facilities. The inadvertent repeal of this section of code would require additional state revenue to support the operations of the facilities, in lieu of being able to access this funding. The estimated revenue for this fund for FY2023 is approximately $58.7M.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2023
Increase/Decrease
(use"-") |
2024
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
1,153,900 |
1,230,850 |
| Personal Services |
0 |
153,900 |
230,850 |
| Current Expenses |
0 |
1,000,000 |
1,000,000 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Provisions for creation of a Sober Living Home/Recovery Residence Taskforce should fall within the current roles and duties of stakeholders and therefore should not have any fiscal impact to the agencies that employ those individuals.
Provisions for continuation and changes to the data dashboard will require the employment of a minimum of three FTE Staff (Programmer Analyst 2 or Epi classifications) with a projected annual costs of approximately $57,000 salary x 35% Benefit rate ($19,950) for a total cost of $76,950 per individual (3 X $76,950 = $230,850) for maintenance, analysis and upkeep of the data dashboard. Currently, one individual is covered by an expiring federal grant and that individual will need state funding to continue along with the other two individuals to allow for 7 days a week staffing to comply with 24 hour provisions of the bill. For SFY 2024 the increase in funding would include two new staff (2 X $76,950 = $153,900) with the third individual added once federal grant funds expire.
Development of data and reporting systems to collect and process the additional information required by this legislation would require substantial review and consideration to provide exact costs. Currently, the ODCP is awaiting receipt of a one time $2,000,000 award from the National Office of Drug Control Policy that was intended to develop statewide outcome measures in collaboration with the State's three Medical Schools. It is believed a portion of those funds could be utilized through the Medical Schools to provide for the requested changes for the data dashboard over the next two years. Once the project is completed, the ODCP would need to find an ongoing funding stream to provide for ongoing maintenance and data collection through additional federal grants or through an improvement request from Legislature. The current expense funding included in the cost estimate above for 2024 and ongoing assumes $1,000,000 in Federal Funding per year for SFY 2024 and SFY 2025 for startup and then a reduced amount for SFY 2026 that may need to be requested from legislature.
Provisions for enforcement would require additional review and consideration to develop accurate cost estimates for both the costs of administration for enforcement activities and amounts to be received from penalties. It is also assumed that the funds received from penalties would be allocated to the Ryan Brown fund to assist in funding for administration of the enforcement. Depending on the amount of penalties and activities needed the potential exists for a cost neutral implementation.
Memorandum
The ODCP has concerns with the requirement for reporting within 24 hours of the incident for non-fatal overdoses. While the ODCP expects the data to be updated as quickly as possible, this provision would require 24 hour staffing for the dashboard and could potentially open up hospitals, first responders and law enforcement to the enforcement provisions and penalties as included in this bill for timelines beyond their control. ODCP encourages input from entities required to report to determine if the mandate to report within 24 hours is feasible.
The enforcement provisions would need legal review and consideration prior to implementation. Whereas the code allows for civil penalties, any legislation resulting from those actions could be counter productive fiscally. For example, a civil penalty of $1,000 could require significant legal action and time and thus cost the ODCP more than the assessed penalty.
Person submitting Fiscal Note: Jeffrey H. Coben, M.D.
Email Address: dhhrsecretary@wv.gov