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 ************************************************************************** * 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. * ************************************************************************** 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 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 * *************************************************************************** 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