LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 12, 1995



 TO:     Honorable Judith Zaffirini, Chair      IN RE:  Senate BillNo. 1303
         Committee on Health & Human Services           By: Cain
         Senate
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
1303 (Relating to the practice of medicine, including the
rehabilitation of impaired physicians, the creation and funding
of the Physicians' Peer Health Assistance Program, and the
unlicensed practice of medicine; providing a penalty.) this
office has determined the following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

This bill amends the Medical Practices Act by creating a
Physicians' Peer Health Assistance Program for impaired
physicians needing assistance in dealing with their physical,
emotional, or psychological problems which could become
detrimental to their ability to practice medicine. The peer
assistance program shall evaluate the extent of the physical,
emotional, or psychological problem and refer physicians for
appropriate additional evaluations well as monitor the status of
physicians participating in the program.

The State Board of Medical Examiners would be required to
contract with a nonprofit statewide health care entity to provide
only for educational and intervention services and services
related to the identification of the physical, emotional, or
psychological problem and the evaluation, diagnosis, referral for
evaluation, and the monitoring and evaluation of the treatment of
the physician participant.  Costs of treatment shall be the
responsibility of the physician participant.    




 This bill also creates the Physicians' Peer Health Assistance
Program Fund as a special account in the state treasury. A
surcharge of no more than $10 may be levied on each annual
registration fee to provide revenues for the funding of the peer
health assistance program. The fees deposited in the fund shall
be credited to the appropriations of the State Board of Medical
Examiners and may be spent only as provided by the General
Appropriations Act.

For the purposes of this fiscal note, the full amount of fee
revenues generated by the fee surcharge are appropriated to the
State Board of Medical Examiners for the operation of this
program. Should the program costs be less than those shown below,
it is expected that the State Board of Medical Examiners would
reduce the surcharge to an appropriate level. There may be some
additional administrative costs associated with this program but
they are expected to be less than $10,000.

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 Revenue    Probable Cost Out 
          Year       Gain to the      of the Physicians'
                  Physicians' Peer       Peer Health    
                  Health Assistance   Assistance Program
                    Program Fund            Fund        
                                                        
          1996              $450,000            $450,000
          1997               450,000             450,000
                                                        
          1998               450,000             450,000
                                                        
          1999               450,000             450,000
          2000               450,000             450,000
                                                        
                                                        
                                                        
       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:   Board of Medical Examiners
          LBB Staff: JK, GT, DF