LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 27, 1997
TO: Honorable Judith Zaffirini, Chair IN RE: Senate Bill No. 1774
Committee on Health & Human Services By: Lucio
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB1774 ( Relating
to the creation of a long-term care pharmacy and a long-term
care satellite pharmacy license.) this office has detemined
the following:
Biennial Net Impact to General Revenue Funds by SB1774-As Introduced
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 amend the Texas Pharmacy Act (Article 4542a-1,
Civil Statutes) to authorize the Texas State Board of Pharmacy
to issue two new classes of pharmacy license. The first license
would be for a long-term care pharmacy that dispenses prescription
drugs or devices to residents of licensed nursing and convalescent
homes and related institutions. The second license would authorize
a licensed pharmacy to maintain a supply of dangerous drugs
and controlled substances at licensed nursing and convalescent
homes and related institutions. The effective date for the
bill would be September 1, 1997.
Methodolgy
It is assumed that implementation of the bill's provisions would
result in the issuance of 1,100 new pharmacy licenses during
fiscal year 1998, and that these licenses would be renewed annually.
The pharmacy board would need one FTE position to handle the
additional workload. New revenue from license application and
renewal fees would be deposited in the pharmacy board's dedicated
operating account in the General Revenue fund.
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 Revenue Change in Number
Savings/(Cost) Gain/(Loss) from of State
from Pharmacy Pharmacy Board Employees from
Board Operating Operating FY 1997
Account/ Account/
GR-Dedicated GR-Dedicated
0523 0523
1998 ($40,391) $180,400 1.0
1998 (28,948) 180,400 1.0
2000 (28,948) 180,400 1.0
2001 (28,948) 180,400 1.0
2002 (28,948) 180,400 1.0
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
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 fiscal implication to units of local government is anticipated.
Source: Agencies: 515 Board of Pharmacy
324 Department of Human Services
LBB Staff: JK ,BB ,NM