LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session April 26, 1999 TO: Honorable Patricia Gray, Chair, House Committee on Public Health FROM: John Keel, Director, Legislative Budget Board IN RE: HB3217 by McCall (Relating to the regulation of the practice of medicine), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB3217, Committee Report 1st House, Substituted: negative impact * * of $(17,416,000) 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 $(8,643,000) * * 2001 (8,773,000) * * 2002 (8,904,000) * * 2003 (8,993,000) * * 2004 (9,083,000) * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable Revenue Probable Revenue Probable Revenue * * Year Gain/(Loss) from Gain/(Loss) from New Gain/(Loss) from * * General Revenue Fund - GR Dedicated Foundation School * * 0001 Medical Licensing Fund * * 0193 * * 2000 $(11,367,000) $8,643,000 $2,724,000 * * 2001 (11,547,000) 8,773,000 2,774,000 * * 2002 (11,732,000) 8,904,000 2,828,000 * * 2003 (11,873,000) 8,993,000 2,880,000 * * 2004 (12,014,000) 9,083,000 2,931,000 * ************************************************************************** Fiscal Analysis The bill would amend the Medical Practices Act by rededicating $50 from each $200 surcharge fee applied to licensing and registration fees paid by physicians to the credit of the Foundation School Fund 0193. The bill would also create a dedicated general revenue account for all revenue collected by the Board of Medical Examiners (BME) and would allow funds in the account only to be spent for the enforcement of the act. The bill would take effect September 1, 1999. Methodology The Comptroller estimates that a loss to the General Revenue Fund would be realized in the amounts of $2,724,000 in fiscal year 2000 and $2,774,000 in 2001 from the rededication of revenue generated from the $200 surcharge fee to the credit of the Foundation School Fund 0193. It is assumed that similar revenues would be generated in each following year. In addition, the Comptroller also estimates that the bill would further reduce the General Revenue Fund by the amount of revenue that the BME would generate in fiscal year 2000 and following years as a result of creating a new general revenue dedicated account. The Comptroller estimates that the BME would generate approximately $8,643,000 in first year and $8,773,000 in the second year in the 2000-01 Biennial Revenue Estimate. It is also assumed that similar revenues would be generated in each following year and that the BME would adopt rules necessary to implement the provisions of the bill. 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