LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 24, 1997
TO: Honorable Hugo Berlanga, Chair IN RE: Senate Bill No. 609, As Engrossed
Committee on Public Health By: Madla
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB609 ( Relating
to the regulation of pharmacies and pharmacists; providing a
penalty.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB609-As Engrossed
Implementing the provisions of the bill would result in a net
impact of $0 to General Revenue Related Funds through the biennium
ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would allow the Texas State Board of Pharmacy to issue
standards for recognition and approval of training programs
for pharmacy technicians, and to maintain a list of training
programs that meet these standards.
The bill would also allow
the Texas State Board of Pharmacy to require a licensee who
has been placed on probation to pay the board a probation fee
to defer the costs of monitoring the licensee during probation.
The
effective date for the bill would be September 1, 1997, and
the provisions of the bill would apply only to licenses issued
on or after this date.
Methodolgy
The board reports that there are 20 pharmacy technician training
programs in the state and projects that this number will increase
by 10 percent through the year 2002. Implementation of the
provision allowing the board to issue standards for these programs
would require a one-time cost of $10,000 for consultant services,
and on-going costs of approximately $10,000 per year to visit
and approve the programs. Utilizing a provision in current
law, the board would charge each approved program $500 per year
to defray the on-going costs. This would generate approximately
$10,000 in new revenue during each full year of operation.
The
board reports that 95 licensees are placed on probation each
year. The board also reports that it would require one full-time
pharmacist to monitor this number of licensees. The costs associated
with the new position would be approximately $55,000 per year,
plus one-time costs during the first year to purchase equipment
for the new staff member. The board would set the monthly probation
fee at $50 per licensee to cover these costs. This would generate
approximately $57,000 in new revenue during each full year of
operation.
Costs and revenues have been adjusted for mid-year
implementation in fiscal year 1998.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Probable Change in Number
Savings/(Cost) Savings/(Cost) of State
from Pharmacy from Pharmacy Employees from
Board Operating Board Operating FY 1997
Account/ Account/
GR-Dedicated GR-Dedicated
0523 0523
1998 ($49,539) $28,500 0.5
1998 (64,898) 67,000 1.0
2000 (65,398) 67,500 1.0
2001 (65,398) 67,500 1.0
2002 (65,898) 68,000 1.0
Net Impact on General Revenue Related Funds:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $0
1999 0
2000 0
2001 0
2002 0
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No significant fiscal implication to units of local government
is anticipated.
Source: Agencies:
302 Office of the Attorney General
501 Department of Health
515 Board of Pharmacy
LBB Staff: JK ,BB