LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
May 8, 1999
TO: Honorable Jane Nelson, Chair, Senate Committee on Health
Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3216 by McCall (Relating to the standardization of
credentialing of physicians.), As Engrossed
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3216, As Engrossed: positive impact of $0 through the biennium *
* ending August 31, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
**************************************************************************
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $0 *
* 2001 0 *
* 2002 0 *
* 2003 0 *
* 2004 0 *
****************************************************
All Funds, Five-Year Impact:
***************************************************************************
*Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) *
* Year General Revenue Fund from General Revenue Fund *
* 0001 0001 *
* 2000 $(1,564,470) $1,564,470 *
* 2001 (403,792) 403,792 *
* 2002 (363,160) 363,160 *
* 2003 (363,160) 363,160 *
* 2004 (363,160) 363,160 *
***************************************************************************
Technology Impact
The bill would require programming costs of $530,000 in the first year
and $61,200 in the second year.
Fiscal Analysis
The bill would amend the Medical Practice Act by creating a credentials
verification program and would require the Board of Medical Examiners
(BME) to collect, verify, maintain and store physician credentials data.
The bill would establish guidelines for the program, allow the BME to
charge fees to cover the program costs, and prohibit health care entities
from collecting duplicate credential data. The bill would also prohibit
state agencies from collecting duplicate core credentials data from
physicians if that information is already available through the program
as of September 1, 2002. The bill would prohibit the BME from making the
credentials reports available before September 1, 2001 and clarifies
that the BME is not required to implement the program if appropriations
are not made by the legislature specifically for that purpose.
The bill would take effect September 1, 1999.
Methodology
The BME estimates the increased workload created by the bill would
require 5 FTEs for the development and maintenance of the credential
verification program and would require $1,389,360 in programming costs,
operating costs, and computer hardware and software upgrades in the
first year. In addition, $228,682 in programming and operating costs
would be required in 2001. In subsequent years the cost of operation
would be reduced to $363,160 per year. The BME estimates licensing
56,617 physicians in fiscal year 2000 and 57,917 in fiscal year 2001 and
that a minimum of 5 verifications per physician per year would be
issued. It is assumed that the BME would adopt rules necessary to
implement the provisions of the bill and would charge fees in an amount
sufficient to cover the estimated costs.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 503 Board of
Medical Examiners
LBB Staff: JK, TP, RT, MW