BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          SB 307 (Price) - Healing arts: Veterinary Medical Board.
          
          Amended: April 24, 2013         Policy Vote: BP&ED 10-0
          Urgency: No                     Mandate: No
          Hearing Date: May 13, 2013      Consultant: Mark McKenzie
          
          This bill meets the criteria for referral to the Suspense File. 

          
          Bill Summary: SB 307 would extend the sunset of the Veterinary  
          Medical Board (VMB) and its executive officer until January 1,  
          2016.  The bill would also require the VMB to endeavor to  
          conduct inspections of 20% of veterinary premises, establish a  
          permit program for veterinary assistants, and make changes to  
          the Veterinary Medicine Multidisciplinary Advisory Committee.

          Fiscal Impact: 
              Projected costs of nearly $3 million annually (VMB  
              Contingency Fund), supporting 12.8 PY, until January 1,  
              2016, fully offset by existing fees.

              Additional expenditures of approximately $265,000 annually  
              for 2 PY (one Office Technician and one Staff Services  
              Analyst) and associated costs to meet the goal of inspecting  
              20% of veterinary premises (VMB Contingency Fund).

              Additional expenditures of $129,000 annually for 2 PY (one  
              Office Technician and one Staff Services Analyst), beginning  
              in 2015-16, to support the workload associated with  
              administering a permit program for veterinary assistants who  
              access controlled substances (VMB Contingency Fund).

              Department of Justice costs of $209,000 in 2015-16, with  
              projected ongoing annual costs of $42,000 to conduct  
              background checks for veterinary assistant applicants  
              (Fingerprint Fee Account).  DOJ costs would be reimbursed by  
              the VMB.

              Estimated new fee revenues of approximately $350,000 in  
              2015-16 related to the permit program, with minor ongoing  
              revenues as new veterinary assistants apply for permits (VMB  
              Contingency Fund).








          SB 307 (Price)
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          Background: The Veterinary Medical Board, consisting of four  
          licensed veterinarians, one registered veterinary technician,  
          and three public members, licenses and regulates approximately  
          15,900 veterinarians and 8,600 registered veterinary  
          technicians.  The VMB is subject to regular review by the Joint  
          Legislative Sunset Review Committee, and is currently scheduled  
          to sunset on January 1, 2014.

          Proposed Law: SB 307 would extend the sunset of the VMB and its  
          executive officer until January 1, 2016.  The bill would also  
          implement the following changes recommended through the sunset  
          review process:
                 Require the VMB to make every effort to inspect at least  
               20% of veterinary premises on an annual basis, and specify  
               that animal rescue or adoption centers are not included in  
               the inspection program.
                 Add two VMB board members to the Veterinary Medicine  
               Multidisciplinary Advisory Committee, as specified, and  
               state legislative intent that the committee should consider  
               issues pertaining to the practice of registered veterinary  
               technicians.
                 Establish a permit program for veterinary assistants who  
               have access to controlled substances, under which a permit  
               applicant would provide the VMB with a set of fingerprints  
               that could be submitted to the Department of Justice and  
               the Federal Bureau of Investigation to obtain criminal  
               history information.
                 Provide that the veterinary assistant permit program  
               would only be implemented after January 1, 2015, and only  
               if the VMB receives sufficient staffing and a fee to cover  
               costs related to the background checks.

          Related Legislation: This bill is one of several bills  
          introduced this session to extend the sunset on licensing boards  
          within the Department of Consumer Affairs - including SB 305  
          (Price), SB 306 (Price), SB 307 (Price), SB 308 (Price), and SB  
          309 (Price).

          Staff Comments: Existing law authorizes the VMB to inspect  
          specified veterinary premises at any time, and requires the  
          board to establish a regular inspection program that provides  
          for unannounced inspections.  According to the VMB, the level of  
          funding provided in the 2012-13 fiscal year only provides for  








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          the inspection of approximately 240 of the 3,400 registered  
          veterinary premises in the state.  Based on a review of the  
          inspection program in the sunset review process, it was  
          determined that the VMB should inspect at least 20% of  
          veterinary premises, or roughly 700 inspections annually.

          The VMB indicates that it would need approximately $265,000 in  
          additional resources in order to achieve this goal.  This  
          includes funding for 2 permanent positions to support the  
          inspection program and $137,000 for travel, per diem, and  
          training costs.  The VMB Contingency Fund currently has a  
          projected reserve of approximately $2.4 million.

          Existing law authorizes registered veterinary technicians and  
          veterinary assistants to administer a drug, including controlled  
          substances, under the direct or indirect supervision of a  
          licensed veterinarian, as specified.  Access to controlled  
          substances is limited to persons who have undergone a background  
          check, and who are not known to have had any drug or alcohol  
          related convictions.  The Department of Justice has indicated  
          that they are unable to provide background information on  
          veterinarian assistants to the VMB unless they are under the  
          authority of the board.

          This bill would establish a veterinary assistant permit program  
          so that VMB can require fingerprints of applicants and obtain a  
          criminal history from DOJ.  To ensure that the VMB has  
          sufficient resources to administer background checks, the bill  
          requires that the permit program is contingent upon the VMB  
          receiving sufficient staffing and a fee to cover its  
          administrative costs, and specifies that the program would not  
          be operative until January 1, 2015.  VMB indicates that a fee of  
          $50 on an estimated population of 7,000 applicants would  
          generate $350,000, which would be sufficient to cover costs for  
          2 PY of staff and to reimburse DOJ for costs to provide criminal  
          history information.