LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  February 3, 1997
         
         
      TO: Honorable Hugo Berlanga, Chair            IN RE:  House Bill No. 226
          Committee on Public Health                              By: Hirschi
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
         In response to your request for a Fiscal Note on HB226 ( Relating to
dispensing Schedule II controlled substances; providing a penalty.) this office
has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB226-As Introduced
         
             Implementing the provisions of the bill would result in no significant
impact to General Revenue Related Funds through the biennium ending
August 13, 1999.
         
         
Fiscal Analysis

The bill would eliminate the use of triplicate forms for prescription of Schedule
II controlled substances.  It would eliminate the Department of Public Safety's
requirement to print, process, and mail triplicate prescription forms.

The bill would also mandate a conversion from manual data entry of the
information regarding these prescriptions to electronic data transfer of the
same information.  It would require pharmacies to submit the required
information in an electronic format to a central repository managed by
the Department of Public Safety.

The bill would allow the Department of Public Safety to contract with a
vendor to serve as the central repository or purchase the necessary
equipment to create the central repository within the department.

Methodology

It was estimated that the cost of implementing and operating the electronic
repository would be offset by the elimination of twenty-three positions
related to data preparation and entry within the Department of Public
Safety.  Positions unrelated to data entry were estimated to remain at
current levels.

It was estimated that the elimination of the triplicate prescription forms
would be fiscally neutral, since the Department historically has been
authorized to charge a fee sufficient to cover the cost of printing,
processing, and storing the forms.
         
 
          
             No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   405   Department of Public Safety
                                         503   Board of Medical Examiners
                                         504   State Board of Dental Examiners
                                         515   Board of Pharmacy
                                         512   Texas State Board of Podiatric Medical Examiners
                                         
                      LBB Staff:   JK ,CB ,RS