LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session May 21, 1999 TO: Honorable Patricia Gray, Chair, House Committee on Public Health FROM: John Keel, Director, Legislative Budget Board IN RE: SB1889 by Nelson (Relating to the regulation of pharmacy technicians, the reinstatement of certain licenses related to the practice of pharmacy, and the reporting of professional liability claims regarding the practice of pharmacy.), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1889, 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 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 $(437,963) $437,963 4.0 * * 2001 (414,431) 414,431 4.0 * * 2002 (801,969) 801,969 13.0 * * 2003 (1,269,210) 1,269,210 23.0 * * 2004 (1,217,010) 1,217,010 23.0 * ************************************************************************** Technology Impact The bill would require information technology equipment costs of $30,000 in the first year. Fiscal Analysis The bill would amend the Texas Pharmacy Act to allow the Board of Pharmacy to require pharmacy technicians to register with the board and would allow the board to adopt fees necessary to cover the cost of registering pharmacy technicians. The bill would require information to be provided to the board regarding either complaints filed in court, or claim letters submitted, against pharmacists, pharmacy technicians, or pharmacy license holders within specific periods of time. The bill would also specify that the board would review information relating to a pharmacist, pharmacy technician, or pharmacy license holder as if a complaint had been filed against the licensee, or license holder, if three professional liability claims would be reported within a five year period. The bill would require the board to adopt rules necessary to implement the provisions of the bill. Although the bill would take effect September 1, 1999, the section requiring the board to establish rules relating to pharmacy technician requirements would take effect January 1, 2001, and the section regarding registration of pharmacy technicians would take effect on September 1, 2001. Methodology The Board of Pharmacy estimates that an additional 4 FTEs in fiscal years 2000-01 would be required to process the professional liability claims. The board estimates that approximately 6,000 professional liability claims would be received in fiscal year 2000 and that the number of claims would increase by five percent each following year. The board estimates that the number of complaints would increase by 10 each year in fiscal years 2000-01 as a result of the professional liability claims and that the complaints would increase to 50 each year beginning in fiscal year 2002. In addition, the board estimates that an additional 9 FTEs in fiscal year 2002 and an additional 10 FTEs in fiscal year 2003 would be required to implement the registration and regulation of pharmacy technicians. The board estimates that 40,000 pharmacy technician registrations would be issued in fiscal year 2002 in addition to the estimated 25,845 licenses issued for pharmacists and pharmacies and that the number of pharmacy technicians would increase by one percent each following year. The board also estimates that an additional 2,500 complaints would be received in fiscal year 2002 as a result of regulating pharmacy technicians and that the number of complaints would increase by one percent each following year. It is assumed that the board would increase current licensing fees and would establish pharmacy technician registration fees as necessary to cover the increased costs. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, TP, RT, MW