PART 24. TEXAS BOARD OF VETERINARY MEDICAL EXAMINERS
CHAPTER 577. GENERAL ADMINISTRATIVE DUTIES
SUBCHAPTER B. STAFF
The Texas Department of Licensing and Regulation (Department), on behalf of the Texas Board of Veterinary Medical Examiners (TBVME), proposes amendments to an existing rule at 22 Texas Administrative Code (TAC), Chapter 577, Subchapter B, §577.15, regarding the General Administrative Duties. These proposed changes are referred to as the "proposed rules."
EXPLANATION OF AND JUSTIFICATION FOR THE RULES
The rules under 22 TAC, Chapter 577, implement Texas Occupations, Chapter 801, Veterinarians.
The proposed rules amend §577.15, Fee Schedule. The proposed rules are required to comply with the General Appropriations Act, House Bill (HB) 1, 88th Legislature Regular Session (2023) at Article VIII, Section 1, which requires certain agencies, including the TBVME, to bring in enough revenue to cover the appropriations given to the TBVME. Therefore, the TBVME is required to increase its revenue through assessed fees to cover the additional appropriations.
The increased appropriation amount of this biennium is expected to decrease next biennium since the amount of funding the TBVME needs will decrease once a new licensing system has been procured. At that time the TBVME will propose rules to decrease the fee amounts so revenue projections for these proposed rules are only for the first two years following adoption.
Advisory Board Recommendations
The proposed rules were presented to and discussed by the State Board of Veterinary Medical Examiners (Board) at its meeting on January 23, 2024. The Board did not make any changes to the proposed rules. The Board voted and recommended that the proposed rules be published in the Texas Register for public comment.
SECTION-BY-SECTION SUMMARY
The proposed rules amend §577.15, Fee Schedule. The proposed rules increase the license application fees for all licenses issued under the statute and rules.
FISCAL IMPACT ON STATE AND LOCAL GOVERNMENT
Tony Couvillon, TDLR Policy Research and Budget Analyst, has determined that for each year of the first five years the proposed rules are in effect, there are no estimated additional costs or reductions in costs to the state and local governments as a result of enforcing or administering the proposed rules.
Mr. Couvillon has also determined that for each year of the first five years the proposed rules are in effect, there is no estimated loss in revenue to the state or to local governments as a result of enforcing or administering the proposed rules.
Mr. Couvillon has determined that for each year of the first five years the proposed rules are in effect, there will be implications relating to an increase in revenue.
The 88th Legislature appropriated additional funding to the TBVME for various purposes in the Fiscal Year 2024-25 biennium. The General Appropriations Act requires certain Article VIII agencies, of which TBVME is one, to bring in enough revenue to cover the appropriations given to the TBVME. Therefore, the TBVME is required to increase its revenue through assessed fees to cover the additional appropriations.
The increased appropriation amount of this biennium is expected to decrease next biennium since the amount of funding the TBVME needs will decrease once a new licensing system has been procured. At that time, the TBVME will propose rules to decrease the fee amounts so revenue projections for these proposed rules are only for the first two years following adoption.
Veterinary license fees are currently $515 for an initial license and $195 for a renewal license. The proposed rules increase the fees to $560 for an initial license and $340 for the license renewal. It is estimated that approximately 700 individuals will apply for a new license each year of the first five years, and approximately 10,000 license holders will renew each year. However, given the date the proposed rules will take effect if adopted, approximately 230 new applicants can be expected to apply in the remainder of the first fiscal year, and approximately 3,350 license holders can be expected to renew during that same time period. Thus, the expected revenue will be $128,800 and $1,139,000 from new and renewal license applications in the first year, and $389,200 and $3,400,00 from new and renewal license applications in the second year, for estimated revenue totals of $1,267,800 in the first year and $3,789,300 in the second year. The revenue for this license type would have been expected to be approximately $771,700 and $2,307,925 for the same time periods at current fee amounts, so the extra revenue from this license type is estimated to be $496,100 in the first year and $1,481,275 in the second year.
Special Veterinary license fees are currently $575 for an initial license and $209 for a renewal license. The proposed rules increase the fees to $630 for an initial license and $250 for the license renewal. It is estimated that approximately six individuals will apply for a new license each year of the first five years, and approximately 50 license holders will renew each year. However, given the date the proposed rules will take effect if adopted, approximately two new applicants can be expected to apply in the remainder of the first fiscal year, and approximately 20 license holders can be expected to renew during that same time period. Thus, the expected revenue will be $1,260 and $5,000 from new and renewal license applications in the first year, and $3,780 and $12,500 from new and renewal license applications in the second year, for estimated revenue totals of $6,260 in the first year and $16,280 in the second year. The revenue for this license type would have been expected to be approximately $5,330 and $13,900 for the same time periods at current fee amounts, so the extra revenue from this license type is estimated to be $930 in the first year and $2,380 in the second year.
Inactive Veterinary license fee is currently $109 for an inactive renewal license. The proposed rules increase the fee to $140 for the inactive license renewal. It is estimated that approximately 530 license holders will renew as inactive each year. However, given the date the proposed rules will take effect if adopted, approximately 175 license holders can be expected to renew as inactive in the remainder of the first fiscal year. Thus, the expected revenue will be $24,500 from inactive license renewal applications in the first year, and $74,200 from inactive license renewal applications in the second year. The revenue for this license type would have been expected to be approximately $19,075 and $57,770 for the same time periods at current fee amounts, so the extra revenue from this license type is estimated to be $5,425 in the first year and $16,430 in the second year.
Veterinary Temporary license fee is currently $200 for the license. The proposed rules increase the fee to $220 for the license. It is estimated that approximately 20 individuals will apply each year. However, given the date the proposed rules will take effect if adopted, approximately six license holders can be expected to apply in the remainder of the first fiscal year. Thus, the expected revenue will be $3,660 from license applications in the first year, and $12,200 applications in the second year. The revenue for this license type would have been expected to be approximately $3,600 and $12,000 for the same time periods at current fee amounts, so the extra revenue from this license type is estimated to be $60 in the first year and $200 in the second year.
Veterinary Provisional license fee is currently $600 for the license. The proposed rules increase the fee to $610 for the license. There are not expected to be any applications for this license type in this or the upcoming fiscal year, so there will be no revenue increases as a result of this license.
Equine Dental Provider license fees are currently $100 for an initial license and $83 for a renewal license. The proposed rules increase the fee to $125 for an initial license and $120 for the license renewal. It is estimated that approximately 10 individuals will apply for a new license each year of the first five years, and approximately 55 license holders will renew each year. However, given the date the proposed rules will take effect if adopted, approximately three new applicants can be expected to apply in the remainder of the first fiscal year, and approximately 20 license holders can be expected to renew during that same time period. Thus, the expected revenue will be $375 and $2,400 from new and renewal license applications in the first year, and $1,250 and $6,600 from new and renewal license applications in the second year, for estimated revenue totals of $2,275 in the first year and $7,850 in the second year. The revenue for this license type would have been expected to be approximately $1,960 and $5,565 for the same time periods at current fee amounts, so the extra revenue from this license type is estimated to be $815 in the first year and $2,285 in the second year.
Inactive Equine Dental Provider license fee is currently $56 for an inactive renewal license. The proposed rules increase the fee to $65 for the inactive license renewal. It is estimated that approximately one license holder will renew as inactive each year. However, given the date the proposed rules will take effect if adopted, it is not estimated any license holders can be expected to renew as inactive in the remainder of the first fiscal year. Thus, the expected revenue will be $0 from inactive license renewal applications in the first year, and $65 from inactive license renewal applications in the second year. The revenue for this license type would have been expected to be approximately $0 and $56 for the same time periods at current fee amounts, so the extra revenue from this license type is estimated to be $9 in the second year.
Licensed Veterinary Technician license fees are currently $50 for an initial license and $50 for a renewal license. The proposed rules increase the fee to $65 for an initial license and $80 for the license renewal. It is estimated that approximately 325 individuals will apply for a new license each year of the first five years, and approximately 2,215 license holders will renew each year. However, given the date the proposed rules will take effect if adopted, approximately 110 new applicants can be expected to apply in the remainder of the first fiscal year, and approximately 740 license holders can be expected to renew during that same time period. Thus, the expected revenue will be $7,150 and $59,200 from new and renewal license applications in the first year, and $21,125 and $177,200 from new and renewal license applications in the second year, for estimated revenue totals of $66,3500 in the first year and $198,325 in the second year. The revenue for this license type would have been expected to be approximately $42,500 and $127,000 for the same time periods at current fee amounts, so the extra revenue from this license type is estimated to be $23,850 in the first year and $71,325 in the second year.
Inactive Licensed Veterinary Technician license fee is currently $26 for an inactive renewal license. The proposed rules increase the fee to $35 for the inactive license renewal. It is estimated that approximately 200 license holders will renew as inactive each year. However, given the date the proposed rules will take effect if adopted, approximately 65 license holders can be expected to renew as inactive in the remainder of the first fiscal year. Thus, the expected revenue will be $2,275 from inactive license renewal applications in the first year, and $7,000 from inactive license renewal applications in the second year. The revenue for this license type would have been expected to be approximately $1,690 and $5,200 for the same time periods at current fee amounts, so the extra revenue from this license type is estimated to be $585 in the first year and $1,800 in the second year.
Late fees will increase in proportion to the increases in licensing fees, with a license holder whose license has been expired 90 days or less renewing by paying 1½ times the renewal fee, and a license holder whose license has been expired more than 90 days but less than one year renewing by paying two times the renewal fee. However, the amount of increased revenue that might come from increased late fees cannot be determined because it is unknown how many license holders will allow their licenses to expire in any given year and be required to pay late fees.
The total increased revenue from all license type fee increases is expected to be approximately $527,765 in the first year and $1,575,704 in the second year.
LOCAL EMPLOYMENT IMPACT STATEMENT
Mr. Couvillon has determined that the proposed rules will not affect a local economy, so the agency is not required to prepare a local economy impact statement under Government Code §2001.022.
PUBLIC BENEFITS
Mr. Couvillon has determined that for each year of the first five-year period the proposed rules are in effect, the public will benefit from allowing the TBVME to meet its obligation to comply with the Appropriations Limited to Revenue Collection requirement in the General Appropriations Act. By meeting this requirement, the TBVME can receive its full appropriation funding, which will allow it to fulfill longstanding needs for such things as a new, modern licensing system, additional needed personnel, and a continued peer assistance program.
PROBABLE ECONOMIC COSTS TO PERSONS REQUIRED TO COMPLY WITH PROPOSAL
Mr. Couvillon has determined that for each year of the first five-year period the proposed rules are in effect, there will be additional costs to persons who are required to comply with the proposed rules. The additional cost to any individual will depend on which license is being applied for and whether it is for an initial or renewal license. The amount the fees are proposed to be increased should be able to be reduced in the next fiscal biennium.
FISCAL IMPACT ON SMALL BUSINESSES, MICRO-BUSINESSES, AND RURAL COMMUNITIES
Mr. Couvillon has determined there will be no adverse economic effect on small businesses, micro-businesses, or rural communities as a result of the proposed rules. The veterinarian program regulates individuals, some of whom might be established as a small or micro-business. It is unknown how many of these persons fall within the definitions of a small or micro-business because data regarding which license holders are established as a small or micro-business are not collected by the agency. The fee increases required by the General Appropriations Act will not be large enough to cause an adverse economic effect on any license holder. The proposed rules will not result in an adverse economic cost to any small or micro-business.
Because the agency has determined that the proposed rules will have no adverse economic effect on small businesses, micro-businesses, or rural communities, preparation of an Economic Impact Statement and a Regulatory Flexibility Analysis, as detailed under Texas Government Code §2006.002, is not required.
ONE-FOR-ONE REQUIREMENT FOR RULES WITH A FISCAL IMPACT
The proposed rules have a fiscal note that imposes a cost on regulated persons, including another state agency, a special district, or a local government. However, the proposed rules fall under the exception for rules that relate to agency procurement under §2001.0045(c)(1) and the exception for rules that are necessary to implement legislation, under §2001.0045(c)(9), unless the legislature specifically states §2001.0045(b) applies. Therefore, the agency is not required to take any further action under Government Code §2001.0045.
GOVERNMENT GROWTH IMPACT STATEMENT
Pursuant to Government Code §2001.0221, the agency provides the following Government Growth Impact Statement for the proposed rules. For each year of the first five years the proposed rules will be in effect, the agency has determined the following:
1. The proposed rules do not create or eliminate a government program.
2. Implementation of the proposed rules does not require the creation of new employee positions or the elimination of existing employee positions.
3. Implementation of the proposed rules does not require an increase or decrease in future legislative appropriations to the agency.
4. The proposed rules require an increase or decrease in fees paid to the agency to allow the TBVME to comply with the requirements of the General Appropriations Act.
5. The proposed rules do not create a new regulation.
6. The proposed rules do not expand, limit, or repeal an existing regulation.
7. The proposed rules do not increase or decrease the number of individuals subject to the rules' applicability.
8. The proposed rules do not positively or adversely affect this state's economy.
TAKINGS IMPACT ASSESSMENT
The Department has determined that no private real property interests are affected by the proposed rules and the proposed rules do not restrict, limit, or impose a burden on an owner's rights to his or her private real property that would otherwise exist in the absence of government action. As a result, the proposed rules do not constitute a taking or require a takings impact assessment under Government Code §2007.043.
PUBLIC COMMENTS
Comments on the proposed rules may be submitted by email to TBVME.Comments@tdlr.texas.gov; by facsimile to (512) 475-3032; or by mail to Monica Nuñez, Legal Assistant, Texas Department of Licensing and Regulation, P.O. Box 12157, Austin, Texas 78711. The deadline for comments is 30 days after publication in the Texas Register.
STATUTORY AUTHORITY
The proposed rules are proposed under Texas Occupations Code, Chapters 51 and 801, which authorize the Texas Commission of Licensing and Regulation, the Department's governing body, to adopt rules as necessary to implement these chapters and any other law establishing a program regulated by the Department.
The statutory provisions affected by the proposed rules are those set forth in the Texas Occupations Code, Chapters 51 and 801. No other statutes, articles, or codes are affected by the proposed rules.
The legislation that enacted the statutory authority under which the proposed rules are proposed is the General Appropriations Act, House Bill 1, 88th Regular Session (2023) at Article VIII, Section 1.
§577.15.Fee Schedule.
The Texas Board of Veterinary Medical Examiners has established the following fixed fees as reasonable and necessary for the administration of its functions. Other variable fees exist, including but not limited to costs as described in §575.10 of this title (relating to Costs of Administrative Hearings), and are not included in this schedule.
(1) Application for initial license.
(A) Veterinary Regular License Application--$560;
(B) Veterinary Special License Application--$630;
(C) Veterinary Provisional License Application--$610;
(D) Veterinary Temporary License Application--$220;
(E) Equine Dental Provider Application--$125; and
(F) Veterinary Technician License Application--$65.
(2) License Renewals.
(A) Current License Renewals.
(i) Veterinary Regular License--$340;
(ii) Veterinary Special License--$250;
(iii) Veterinary Inactive License--$140;
(iv) Equine Dental Provider License--$120;
(v) Equine Dental Provider Inactive License--$65;
(vi) Veterinary Technician Regular License--$80; and
(vii) Veterinary Technician Inactive License--$35.
(B) Expired License Renewals - Less than 90 days delinquent.
(i) Veterinary Regular License--$510;
(ii) Veterinary Special License--$375;
(iii) Veterinary Inactive License--$210;
(iv) Equine Dental Provider License--$180;
(v) Equine Dental Provider Inactive License--$97.50;
(vi) Veterinary Technician Regular License--$120; and
(vii) Veterinary Technician Inactive License--$52.50.
(C) Expired License Renewals - More than 90 days and less than 1 year delinquent.
(i) Type of License--Board Fees;
(ii) Veterinary Regular License--$680;
(iii) Veterinary Special License--$500;
(iv) Veterinary Inactive License--$280;
(v) Equine Dental Provider License--$240;
(vi) Equine Dental Provider Inactive License--$130;
(vii) Veterinary Technician Regular License--$160; and
(viii) Veterinary Technician Inactive License--$70.
(3) Specialized License Categories.
(A) Veterinary Reinstatement--$437.50;
(B) Veterinary Reactivation--$262.50;
(C) Equine Dental Provider Reactivation--$43.75; and
(D) Veterinary Technician Reactivation--$43.75.
(4) Other Fees.
(A) Criminal History Evaluation Letter--$50;
(B) Returned Check Fee--$45;
(C) Duplication of License--$40;
(D) Letter of Good Standing--$45;
(E) Continuing Education Approval Review Process--$45;
(F) Continuing Education Approval Review submitted less than 30 days prior to the continuing education event--$100; and
(G) Equine Dental Certification Approval Review Process--$2,500.
[Figure: 22 TAC §577.15]
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on June 10, 2024.
TRD-202402555
Doug Jennings
General Counsel
Texas Board of Veterinary Medical Examiners
Earliest possible date of adoption: July 21, 2024
For further information, please call: (512) 475-4879