LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 17, 1995



 TO:     Honorable Hugo Berlanga, Chair         IN RE:  House Bill No. 2838
         Committee on Public Health                     By: Maxey
         House of Representatives
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
2838 (Relating to the powers and duties of the Texas Department
of Health under the Texas Food, Drug, and Cosmetic Act.) this
office has determined the following:

The bill would modify provisions in the Texas Food, Drug, and
Cosmetic Act.  The definition of "manufacture" would be modified
to exclude foods, drugs, and devices manufactured only for retail
distribution.  As a result, the Department of Health estimates
the loss of fee revenue noted below.  The reduction in
expenditures would be associated with the reduction in regulatory
activity.

The probable fiscal implication of implementing the provisions of
the bill during each of the first  five years following passage
is estimated as follows:
     



            Fiscal  Probable Savings    Probable Revenue      Change in    
             Year     to  General      Loss from  General  Number of State 
                    Revenue Fund 001    Revenue Fund 001    Employees from 
                                                               FY 1995     
                                                                           
          1996             $1,123,323          $1,123,323            (20.0)
                                                                           
          1997              1,123,323           1,123,323            (20.0)
          1998              1,123,323           1,123,323            (20.0)
                                                                           
                                                                           
                                                                           

        1999                 1,123,323            1,123,323             (20.0)

        2000                 1,123,323            1,123,232             (20.0)



       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.

No fiscal implication to units of local government is
anticipated.


Source:   Department of Health
          LBB Staff: JK, KF, DF