Revenue (R+/R-)

II. Types of Economic Impact.

Expenditure
(E+/E-)

A. On issuing agency:

B. On other State agencies:

C. On local governments:

Benefit (+)
Cost (-)

D. On regulated industries or trade groups:

(1) Owners of veterinary hospitals

(2) Veterinarians

(3) Registered veterinary technicians

E. On other industries or trade groups:

F. Direct and indirect effects on public:

III. Assumptions. (Identified by Impact Letter and Number from Section II.)

A(1). The SBVME is charged with setting fees necessary to carry out its mission. Under the proposed fee structure, the SBVME anticipates collecting $724,200 annually, approximately $259,500 more than it currently collects (that being approximately $464,700). The proposed fee structure is intended to produce funds approximating the cost of maintaining the SBVME for the next 5 years, plus the additional cost of a new vehicle.

A(2). The SBVME's expenditures have exceeded its revenues since fiscal year 2009. The SBVME had been able to cover its operating costs due to reserve monies being generated, as planned, between fiscal years 2004—2008. An inability to revise its fee structure will leave the SBVME with an increasing deficit in coming years. It is currently estimated that the SBVME's expenditures will exceed its revenues by $109,000 at the close of fiscal year 2012. In an effort to help resolve complaints filed by consumers, SBVME members are interested in pursuing training in mediation and conflict resolution. The SBVME may also consider sending members on a rotating basis to a national conference for state veterinary boards and/or state regulatory boards, in general. Issues impacting veterinary boards across the country, including those of legal and administrative natures, are discussed. Advanced training for the SBVME's investigator would also be sought. The SBVME would also research the possibility of offering continuing education to its licensees, focusing on those areas deemed to need improvement by the regulated community.

D(1). The annual licensing fee for veterinary hospitals is proposed to increase from $100 to $215. This hospital licensing fee represents the second highest source of revenue for the SBVME. The SBVME is proposing that hospital owners who do not reapply for hospital licenses in a timely manner be required to pay a higher late fee ($100 versus the current $40 fee).

D(2). Veterinarians also will be impacted by the fee increases. Veterinary registrations represent the largest source of revenue generated for the SBVME. The SBVME is proposing a 54 percent increase in registration fees. Late registration fees are proposed to increase from $40 to $100. Veterinarians who do not re-register their veterinary license in a timely manner will be required to pay a higher late fee. Approximately 5 percent of licensed veterinarians register late each year. Additionally, under this proposal, prospective licensing candidates would pay $50 more than current licensure candidates pay, and currently licensed veterinarians would pay $10 more for licensure verification to be provided by the SBVME to another state's veterinary board.

D(3). While fees for registered veterinary technicians (RVTs) are also proposed to increase, the percentages of those increases will be less than those incurred by veterinary hospital owners and veterinarians. The initial application fee for a prospective RVT is proposed to increase from $60 to $85, and the triennial registration fee is proposed to increase from $50 to $75.

F. The SBVME routinely reviews and revises the standards for the practice of veterinary medicine in the State of Maryland. The SBVME continues to enforce these standards in an effort to help protect the public and, more specifically, pet owners. Emphasis is placed by the SBVME on bringing its licensees into compliance. This can be achieved by taking formal or informal actions, when warranted. Over the past 5 fiscal years, the SBVME has taken either formal or informal action in approximately 62 percent of cases it investigates.