LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 4, 1997 TO: Honorable Judith Zaffirini, Chair IN RE: Senate Bill No. 1774, Committee Report 1st House, Substituted Committee on Health & Human Services By: Moncrief 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-Committee Report 1st House, Substituted 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: 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