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
  
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*  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:
  
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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             $(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