LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 13, 1999
TO: Honorable Jane Nelson, Chair, Senate Committee on Health
Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1207 by Cain (Relating to the Texas State Board of
Medical Examiners and the licensure of physicians;
appropriating fees and providing penalties.), As
Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1207, As Introduced: negative impact of $(19,365,703) 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 $(9,618,029) *
* 2001 (9,747,674) *
* 2002 (9,747,674) *
* 2003 (9,747,674) *
* 2004 (9,747,674) *
****************************************************
All Funds, Five-Year Impact:
***************************************************************************
*Fiscal Probable Probable Probable Probable *
* Year Revenue Revenue Revenue Revenue *
* Gain/(Loss) Gain/(Loss) Gain/(Loss) Gain/(Loss) *
* from General from New - GR from Foundation from General *
* Revenue Fund Dedicated School Fund Revenue Fund *
* 0001 0193 0001 *
* 2000 $(8,643,029) $8,643,029 $(243,750) $(731,250) *
* 2001 (8,772,674) 8,772,674 (243,750) (731,250) *
* 2002 (8,772,674) 8,772,674 (243,750) (731,250) *
* 2003 (8,772,674) 8,772,674 (243,750) (731,250) *
* 2004 (8,772,674) 8,772,674 (243,750) (731,250) *
***************************************************************************
Fiscal Analysis
The bill would amend the Medical Practices Act by creating a single fee
for a license and first annual registration permit. 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 also create a dedicated general revenue account and require
all revenue collected by the Board of Medical Examiners to be deposited
into that account. The bill would allow funds in the account only to be
spent for the enforcement of the act.
The bill would take effect immediately upon enactment, assuming that it
received the requisite two-thirds majority votes in both houses of the
Legislature. Otherwise, it would take effect 90 days after adjournment.
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. 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.
Under the provisions of the bill new physicians would pay $910 instead of
$1,110 to be licensed and receive a first annual registration. The
Board of Medical Examiners (BME) estimates 4,875 new physicians would be
licensed each year. A net loss to the General Revenue fund would be
realized equivalent to the $150 portion of the surcharge that would be
eliminated by the bill and a net loss of $243,750 would be realized by
the Foundation School Fund as well.
A net loss to the General Revenue Fund would be realized equivalent to
the amount of revenue contained in the Comptroller's Biennial Revenue
estimate. It is assumed that similar revenues would be generated in
each following fiscal 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: 781 Higher Education Coordinating Board, 360
State Office of Administrative Hearings, 503 Board
of Medical Examiners, 405 Department of Public
Safety, 304 Comptroller of Public Accounts
LBB Staff: JK, TP, RT, MW