Bill Text: NH SB545 | 2024 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Establishing a committee to study the scope and role of veterinary technicians.

Spectrum: Moderate Partisan Bill (Democrat 9-1)

Status: (Passed) 2024-07-30 - Signed by the Governor on 07/26/2024; Chapter 0304; Effective 07/26/2024 [SB545 Detail]

Download: New_Hampshire-2024-SB545-Introduced.html

SB 545-FN - AS INTRODUCED

 

 

2024 SESSION

24-3080

08/06

 

SENATE BILL 545-FN

 

AN ACT relative to reestablishing the large animal veterinarians incentive.

 

SPONSORS: Sen. Prentiss, Dist 5; Sen. Fenton, Dist 10; Sen. Watters, Dist 4; Sen. Rosenwald, Dist 13; Sen. Perkins Kwoka, Dist 21; Sen. Whitley, Dist 15; Sen. Innis, Dist 7; Sen. D'Allesandro, Dist 20; Rep. Morse, Graf. 9; Rep. J. Sullivan, Graf. 2

 

COMMITTEE: Energy and Natural Resources

 

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ANALYSIS

 

This bill reestablishes the large animal veterinarian education repayment program for the promotion, acquisition, and retention of a large animal veterinarian in the north country.

 

This bill makes an appropriation to the program.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

24-3080

08/06

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty Four

 

AN ACT relative to reestablishing the large animal veterinarians incentive.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1 New Subdivision; Large Animal Veterinarian Education Repayment Program. Amend RSA 425 by inserting after section 27 the following new subdivision:

Large Animal Veterinarian Education Repayment Program

425:28 Large Animal Veterinarian Education Repayment Program Established. The state veterinarian shall administer a program for the promotion, acquisition, and retention of a large animal veterinarian in the counties of Coos, Carroll, Grafton, and Belknap. A qualifying veterinarian shall have at least 35 percent of his or her veterinary practice devoted to large animal veterinary medicine.

425:29 Application; Repayment. An individual who has completed his or her veterinary medical education, including internships and residencies, and agrees to practice as a licensed veterinarian in Coos, Carroll, Grafton, and/or Belknap counties, may apply to the state veterinarian for repayment under the large animal veterinarian education repayment program and have reimbursed up to 20 percent of their qualifying veterinary education costs for each 3 full years of practice agreed to.

425:30 Fund Established. There is hereby established in the office of the state treasurer a fund to be known as the large animal veterinarian education repayment fund. The fund shall include any sums appropriated for such purpose. In addition, the state veterinarian is authorized to accept public sector and private sector grants, gifts, or donations of any kind for the purpose of funding the provisions of this subdivision. The moneys in this fund shall be nonlapsing and shall be continually appropriated to the department of agriculture, markets, and food. The fund may be expended by the state veterinarian to accomplish the purposes of this subdivision. The state treasurer may invest moneys in the fund as provided by law, with interest received on such investment credited to the fund.

425:31 Administration; Rulemaking. The state veterinarian shall adopt rules, pursuant to RSA 541-A, relative to procedures and qualifications for applicants, qualifying educational costs, criteria for terms of service by a large animal veterinarian, procedures for repayment of education costs, and the administration of the program by the department of agriculture, markets, and food.

2 Appropriation. The sum of $50,000 is hereby appropriated to the department of agriculture, markets, and food for deposit in the large animal veterinarian education repayment fund established in RSA 425:30. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

3 New Subparagraph; State Treasurer; Accounts. Amend RSA 6:12, I(b) by inserting after subparagraph (394) the following new subparagraph:

(395) Moneys deposited in the large animal veterinarian education repayment fund established in RSA 425:27.

4 Effective Date. This act shall take effect July 1, 2024.

 

LBA

24-3080

Revised 12/20/23

 

SB 545-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to reestablishing the large animal veterinarians incentive.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

Estimated State Impact - Increase / (Decrease)

 

FY 2024

FY 2025

FY 2026

FY 2027

Revenue

$0

$0

$0

$0

Revenue Fund(s)

Large animal veterinarian education repayment fund.

Expenditures

$0

$40,000

$25,067

$25,067

Funding Source(s)

General Fund

 

Appropriations

$0

$50,000

$0

$0

Funding Source(s)

General Fund

 

Does this bill provide sufficient funding to cover estimated expenditures? [X] No

Does this bill authorize new positions to implement this bill? [X] No

 

METHODOLOGY:

This bill reestablishes the large animal veterinarian education repayment program for the promotion, acquisition, and retention of a large animal veterinarian in the north country.  The Department of Agriculture, Markets and Food provided the following information and assumptions concerning the fiscal impact of this bill:

  • The program would be established for retention of a large animal veterinarian in the counties of Coos, Carroll, Grafton, and Belknap.  Many parts of the state are in a similar, or worse, predicament relative to large animal veterinary services.

 

  • The ability to maintain a practice in the area must be demonstrated. Including an adequate client base, client invoices paid on time, sufficient fees generated to operate a one-doctor business, etc.

 

  • Relative to reimbursing “up to 20% of qualifying” debt for each 3 full years of practice.  It is assumed this would be renewable after 3-years, otherwise it is unlikely a veterinarian will be able to stay in the area if they still have 80% of their debt to pay off.  It is further assumed 20% is based on initial qualifying debt rather than being recalculated each year or application period.

 

  • Per the American Veterinary Medical Association, the average educational debt accrued during veterinary school, (excluding undergraduate debt) among graduates with debt in 2023 is $185,486.

 

  • The bill appropriates $50,000. It is assumed this would be the maximum amount of an initial contract since the state could not commit more money than is available.

 

  • Assume the program must account for tax implications for veterinarians, since the IRS taxes such programs at 39%. (For example: $50k – $19,500 (39% s) = $30,500 toward debt for a 3-year commitment, ~$10,167/year.

 

  • The federal Veterinary Medical Loan Repayment Program (VMLRP) provides approximately $122,000 for the same, 3-year commitment.  New Hampshire submits 2 shortage areas every year for the VMLRP, and in most years there are only 1 or 2 applicants.  The Department has observed no success in over 10 years using the  VMLRP to recruiting a new practitioner into an empty area and having them stay.  This aligns with AVMA research that shows the most important factor in choosing the first job out of school is mentorship in an existing practice.

 

  • The Department's experience indicates there is little to no interest among debt-laden veterinarians in moving to these areas to set up shop unless an established practice is there to provide stability, support and mentoring. There is substantial expense in setting up a practice which compounds the challenges noted above.

 

  • Establishing the program would require of 400 hours of state veterinarian time; having to flesh out concepts, meet with interested parties, write rules, create applications and learn contract processes.   This estimate is based on the effort to establish the cost of care fund which was less technically and legally challenging.

 

  • Additional state veterinarian time 10 hours per month will be spent to audit practice records and assure compliance with state contract.

 

Based on these assumptions, the Department provided the following cost estimates:

 

 

FY 2025

FY 2026

FY 2027

20% State Veterinarian's time to establish the program

$38,600

 

 

Vehicle and fuel to meet with interested parties

$1,400

 

 

6% of the State Veterinarian's time for ongoing audit /compliance

 

$8,400

$8,400

Payment to contracted veterinarian for 3 years ($50,000/3)

($6,500 of the payment covers the 39% fed tax)

 

$16,667

$16,667

  

AGENCIES CONTACTED:

Department of Agriculture, Markets and Food

 

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