LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              March 23, 1999
  
  
          TO:  Honorable Jane Nelson, Chair, Senate Committee on Health
               Services
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB931  by Madla (Relating to the support of graduate
               pharmacy education and resident pharmacists.), As
               Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB931, As Introduced:  negative impact of $(1,275,000) 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                           $(212,500)  *
          *       2001                          (1,062,500)  *
          *       2002                          (1,062,500)  *
          *       2003                          (1,062,500)  *
          *       2004                          (1,062,500)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***************************************************************************
*Fiscal      Probable        Probable        Probable       Change in     *
* Year       Revenue         Revenue         Revenue     Number of State  *
*          Gain/(Loss)     Gain/(Loss)     Gain/(Loss)    Employees from  *
*         from Pharmacy    from General    from General      FY 1999      *
*        Board Operating   Revenue Fund    Revenue Fund                   *
*            Account/          0001            0001                       *
*          GR-Dedicated                                                   *
*              0523                                                       *
*  2000        $(850,000)        $850,000    $(1,062,500)             7.5 *
*  2001                 0               0     (1,062,500)             7.5 *
*  2002                 0               0     (1,062,500)             7.5 *
*  2003                 0               0     (1,062,500)             7.5 *
*  2004                 0               0     (1,062,500)             7.5 *
***************************************************************************
  
Fiscal Analysis
  
The bill would establish a residency program for pharmacists to be
administered by the Coordinating Board (Board).   It authorizes the
Comptroller to transfer $850,000 from the State Board of Pharmacy's fund
account to the undedicated portion of the General Revenue Fund and allows
the Legislature to use these funds to establish the pharmacy program.
The Board would use the appropriation to provide grants to pharmacy
schools in amounts not to exceed $10,000 per resident position. The
schools would use the grants to compensate each qualified resident.  A
pharmacy school would be eligible to receive these funds for a resident
in any year only if the school and the training site (pharmacy) each
contribute at least $10,000 toward the compensation of each resident
position for the year. The bill also restricts the number of compensated
residents in each year to 50 percent of the total number of persons in
the preceding year's graduating classes.

The bill establishes an advisory committee to make recommendations to the
Board on the allocation of funds among the schools.  It also permits the
schools to apply and receive grants to support faculty preceptors who
would supervise the residencies.  The Board may use not more than 10
percent of the total amount appropriated for the program to fund
preceptor positions.
  
  
Methodology
  
This analysis is based on a cost estimate from the Board which assumes
that the residencies would be funded in 2000 and 2001 from the amount
transferred from the State Pharmacy Board's general revenue dedicated
account.  The Comptroller states that there are not certification costs
in the transfer of the funds.

The Board estimates that the $850,000 would compensate 40 residents at
$9,562 per resident.  Ten percent of the total amount also would fund .5
preceptors.  The Board assumes a student-to-faculty ratio of 5 to 1 and
that 8 preceptors would be required at the schools to monitor the
residencies at an estimated salary of $85,000 per preceptor.  The cost to
the program would be the transferred amount plus the salaries for 7.5
preceptors.

For subsequent years, the Board has assumed that the appropriation
transfer from the State Pharmacy Board dedicated account would apply
only to 2000 and 2001 and that the Legislature would appropriate money
for the residency program from the General Revenue Fund at the 2000-01
level.  The Board assumes that administrative costs of the program and
travel costs of the advisory committee would be absorbed by the agency.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   
LBB Staff:         JK, TP, LD, CF