LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 5, 1999
TO: Honorable Jane Nelson, Chair, Senate Committee on Health
Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB782 by Nelson (Relating to disclosure requirements for
certain information held by pharmacists, pharmacies, and
pharmacy benefit managers.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB782, As Introduced: 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 Probable Revenue Change in Number of *
* Year Savings/(Cost) from Gain/(Loss) from State Employees from *
* Pharmacy Board Pharmacy Board FY 1999 *
* Operating Account/ Operating Account/ *
* GR-Dedicated GR-Dedicated *
* 0523 0523 *
* 2000 $(39,049) $39,049 1.0 *
* 2001 (28,697) 28,697 1.0 *
* 2002 (28,697) 28,697 1.0 *
* 2003 (28,697) 28,697 1.0 *
* 2004 (28,697) 28,697 1.0 *
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Technology Impact
The Board of Pharmacy estimates absorbing the cost of 40 hours of
computer programming required to implement the provisions of the bill.
Fiscal Analysis
The bill amends the Insurance Code by expanding the definition of an
administrator to include individuals who administer pharmacy benefits and
defines a pharmacy benefit manager for the purposes of licensing under
the Insurance Code. The bill also amends the Texas Pharmacy Act to
require pharmacists, pharmacies, and pharmacy benefit managers to
disclose to the Pharmacy Board any financial incentives or other
compensation offered to them by pharmaceutical companies. The bill also
identifies restrictions on the release of information compiled during the
course of patient treatment that can identify a patient. The Board of
Pharmacy and the Board of Insurance would adopt rules necessary to
implement the provisions of the bill.
This act takes effect on September 1, 1999.
Methodology
Based on the number of active pharmacists obtaining continuing education,
the Board of Pharmacy estimates one FTE will be required to enter data
from approximately 100,000 submitted documents containing disclosed
information each year into the board's computer system. The board
estimates each pharmacist would obtain approximately six hours of
continuing education per year that would result in a financial incentive
or other compensation, either paid or offered, for those hours by
pharmaceutical companies. It is assumed that the Board of Pharmacy would
raise fees by an amount necessary to cover the cost of implementing the
provisions of the bill.
In addition, the Board of Insurance estimates that the regulation of
pharmacy benefit managers, as required by the bill, can be implemented
with current staff and resources and that new revenues generated from
pharmacy benefit manager licensing fees would not significantly impact
the state.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies:
LBB Staff: JK, TP, RT, MW