The department shall calculate the fees for tests conducted in the state health laboratory based on the cost of performing the tests. Cost is determined by applying the formula

1. (1) Oe = operating expenditures: includes personal services (salaries); employee benefits; travel (lodging, meals, and mileage according to rates found in article 5:01); contractual services (e.g., maintenance of equipment, phone services, and equipment rental); supplies and materials (office, medical, forensic, and environmental laboratory supplies, e.g., pencils, pens, paper, HIV test kits, chlamydia test kits, and drinking water test); and grants and subsidies (Xraysdoneoutsidethelaboratory);
2. (2) Ce = capital outlay to be expensed: includes all capital outlay purchases less than the amount for any tangible item as stated in § 10:02:01:01;
3. (3) D = depreciation: includes all capital outlay purchases over the amount for any tangible item as found in § 10:02:01:01;
4. (4) Ad = administrative costs: costs allocated based on the ratio of operating expenditures for the section to total operating expenditures;
5. (5) X = net available work time units; computed using available minutes per nonadministrative full-time equivalent employee;
6. (6) G = overrecovery or underrecovery for the preceding year. If there is an overrecovery, it is subtracted from (Oe + Ce + D + Ad). If there is an underrecovery, it is added to (Oe + Ce + D + Ad). Overrecovery occurs if fee revenue exceeds expenditures. Underrecovery occurs when expenditures exceed fee revenue. Overrecovery or underrecovery is allocated annually;
7. (7) Y = established work time units for any given test. For purposes of this section, an established work time unit (WTU) is a measurement of time reduced to one-minute increments needed to perform a specific laboratory task;
8. (8) Z = cost per WTU; and
9. (9) F = the fee for the test.

^{(Oe + Ce + D + Ad) + G} = Z; then Z x Y = F

X

Terms used in the formula mean:

Source: 21 SDR 219, effective June 27, 1995; 22 SDR 184, effective July 4, 1996.

General Authority: SDCL 1-49-3.

Law Implemented: SDCL 1-49-3.