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