LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session April 20, 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.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB3217, As Introduced: negative impact of $(23,791,500) 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 $(11,805,750) * * 2001 (11,985,750) * * 2002 (12,169,750) * * 2003 (12,311,750) * * 2004 (12,452,750) * **************************************************** 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 Fund * * 0193 * * 2000 $(11,562,000) $8,643,000 $(243,750) * * 2001 (11,742,000) 8,773,000 (243,750) * * 2002 (11,926,000) 8,904,000 (243,750) * * 2003 (12,068,000) 8,993,000 (243,750) * * 2004 (12,209,000) 9,083,000 (243,750) * ************************************************************************** Fiscal Analysis The bill would amend the Medical Practices Act by creating a single fee for a license and first annual registration permit, and by repealing current provisions for temporary out-of-state and reciprocity licenses. Under current law, a person must pay a license fee and a registration fee in addition to a surcharge for both fees in order to become a licensed physician. The bill would clarify that $50 from each surcharge fee would be deposited to the credit of the Foundation School Fund and that $150 would be deposited in the General Revenue Fund. 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 bill would impact revenues generated from surcharges applied to licensing and registration fees paid by new physicians. Under current law, a person must pay a license fee of $800 ($600 with a $200 surcharge) to become a licensed physician in addition to a registration fee of $310 ($110 with a $200 surcharge) to register the license in order to practice. Under the provisions of the bill, new physicians would pay $910 instead of $1,110 to be licensed and receive a first annual registration. A net loss to the General Revenue Fund and the Foundation School Fund would be realized equivalent to the portion of the surcharge that would be eliminated by the bill. The bill would 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 $8,643,029 in first year and $8,772,674 in the subsequent year in the 2000-01 Biennial Revenue Estimate. In addition, the Comptroller estimates that a loss of approximately $3 million to the General Revenue Fund each fiscal year would be realized as a result of the bill eliminating temporary out-of-state and reciprocity licenses. It is 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: 405 Department of Public Safety, 308 State Auditor's Office, 360 State Office of Administrative Hearings, 503 Board of Medical Examiners, 304 Comptroller of Public Accounts, 781 Higher Education Coordinating Board LBB Staff: JK, TH, RT, MW