LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 8, 1999
TO: Honorable Patricia Gray, Chair, House Committee on Public
Health
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB730 by Madla (Relating to the licensing and regulation
of pharmacists and pharmacies.), As Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB730, 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. *
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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:
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*Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) *
* Year Pharmacy Board Operating from Pharmacy Board Operating *
* Account/ GR-Dedicated Account/ GR-Dedicated *
* 0523 0523 *
* 2000 $0 $715,988 *
* 2001 0 715,988 *
* 2002 0 0 *
* 2003 0 0 *
* 2004 0 0 *
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Fiscal Analysis
The bill would amend the Texas Pharmacy Act to allow the Board of
Pharmacy to renew pharmacy licenses and register pharmacy balances
biennially instead of annually. The bill would also allow the Board of
Pharmacy to charge a peer assistance surcharge for each twelve months in
a licensing period instead of for each license. Peer assistance
surcharges are assessed to both pharmacist and pharmacy licenses. The
Board of Pharmacy would adopt rules necessary to implement the
provisions of the bill.
Methodology
The Board of Pharmacy estimates implementing a biennial license renewal
system for both pharmacists and pharmacies and a biennial registration
renewal system for pharmacy balances on a staggered monthly basis
beginning March 1, 2000. The board also estimates that all licenses and
pharmacy balance registrations will be renewed biennially as of February
28, 2001, under the current fee structure. Annual licensing fees for
pharmacists are $96 ($89 licensing fee and $7 peer assistance surcharge)
and $164 ($157 licensing fee and $7 peer assistance surcharge) for
pharmacies. Biennial licensing fees for pharmacists would be $192 ($178
licensing fee and $14 peer assistance surcharge) and $328 ($314 licensing
fee and $14 peer assistance surcharge) for pharmacies. The biennial
registration fee for pharmacy balances would be $25 since the current
annual registration fee is $12.50.
The board estimates 1,950 pharmacy balance registrations will be renewed
in addition to 10,050 pharmacist and 2,700 pharmacy licenses at the
annual rate from September 1, 1999 through February 28, 2000. During
the following six months (March 1, 2000 through August 31, 2000), 5,025
pharmacists and 1,350 pharmacies will renew licenses at the annual rate
while the same number of pharmacists and pharmacies will begin the
biennial renewal process. Similarly, 975 pharmacy balances will
register at an annual rate and the same number will register at the
biennial rate. In fiscal year 2001, 5,025 pharmacist licenses, 1,350
pharmacy licenses, and 975 pharmacy balance registrations will have been
renewed annually while 10,050 pharmacist licenses, 2,700 pharmacy
licenses, and 2,925 pharmacy balance registrations will have been
renewed biennially. In fiscal year 2002, the board estimates 10,050
pharmacist licenses, 2,700 pharmacy licenses, and 3,900 pharmacy balance
registrations will be renewed biennially.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 515 Board of Pharmacy
LBB Staff: JK, TP, RT, MW