Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Adam Proffitt, Director Laura Kelly, Governor


February 19, 2021


The Honorable Richard Hilderbrand, Chairperson
Senate Committee on Public Health and Welfare
Statehouse, Room 445A-S
Topeka, Kansas 66612
Dear Senator Hilderbrand:
SUBJECT: Fiscal Note for SB 251 by Senate Committee on Ways and Means
In accordance with KSA 75-3715a, the following fiscal note concerning SB 251 is
respectfully submitted to your committee.
SB 251 would make the following amendments to the Kansas Pharmacy Act:
1. Permitting the Board of Pharmacy to charge additional fees for inspections of specific
facilities;
2. Requiring the Board to develop rules and regulations for operating a telepharmacy in
Kansas;
3. Updating multiple definitions and defining “virtual manufacturer” and “virtual wholesale
distributor”;
4. Updating the Board’s disciplinary authority;
5. Permitting the Board to expunge minor violations from a license or registration record;
6. Limiting the maximum number of attempts for pharmacy practice and pharmacy law
examinations for applications;
7. Permitting Pharmacy Technicians to receive orders for continuation therapy from a
prescriber;
8. Permitting pharmacists to exercise prescription adaptation for non-controlled medications;
9. Adding a non-resident facility application fee;
10. Increasing fee maximums for most original and renewal applications;
11. Permitting a pharmacy to forward an original, unfilled prescription to another pharmacy at
the request of the patient which is consistent with federal requirements; and
The Honorable Richard Hilderbrand, Chairperson
Page 2—SB 251

12. Updating the Board’s authority to assess civil fines for violations of the Act and allowing
the Board to retain all collected civil fines.
According to the Board of Pharmacy, the agency has been planning for the bulk of the
changes reflected in SB 251 for several years. Expenses have been budgeted and no increase in
expenditures is anticipated. Any changes to the Board’s current Licensing and Compliance
divisions would be offset by revenue from applications and reimbursement of actual costs of
inspections and investigations. All other changes have been contemplated by the Board,
incorporated into the Board’s current five-year strategic plan, and could be absorbed within
existing agency staff.
The Board does not anticipate there would be a significant number of telepharmacy
registrations. However, those facilities would be required to apply for registration with the Board
and pay application and annual renewal fees to offset agency expenditures.
The bill would direct depositing administrative fine revenue to the State Board of Pharmacy
Fee Fund rather than depositing into the State General Fund. The Board estimates the maximum
reduction to State General Fund revenue and the maximum increase to State Board of Pharmacy
Fee Fund revenue would be $80,000.
The Board estimates the bill could result in additional revenue of $399,867 for the State
Board Pharmacy Fee Fund. This amount includes $284,267 from planned increases to existing
regulatory fees plus $115,600 from the new non-resident facility renewal fee. The Board indicates
there are currently 2,312 non-resident facilities. The estimate of revenue from the non-resident
facility renewal fee assumes the all current non-resident facilities renew in FY 2022. While the
bill allows for a maximum renewal fee of $250, the Board plans to adopt a renewal fee of
approximately $50 in FY 2022. The Board is unable to estimate the number of new non-resident
facility applications and, therefore, the amount of revenue that would result from the new non-
resident facility application fee is unknown. The Board notes that increases in statutory fee
maximums will not have an impact on Pharmacy Fee Fund revenue until the Board amends current
fees by rule and regulation. Any fiscal effect associated with SB 251 is not reflected in The FY
2022 Governor’s Budget Report.


Sincerely,

Adam Proffitt
Director of the Budget

cc: Alexandra Blasi, Board of Pharmacy


Statutes affected:
As introduced: 65-636, 65-1626, 65-1627, 65-1631, 65-1637, 65-1643, 65-1645, 65-1656, 65-1657, 65-1658, 65-1663, 65-1676