LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session May 8, 1999 TO: Honorable Jane Nelson, Chair, Senate Committee on Health Services FROM: John Keel, Director, Legislative Budget Board IN RE: SB1889 by Nelson (relating to the regulation of pharmacy technicians and the reporting of professional liability cliams regarding the practice of pharmacy), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1889, Committee Report 1st House, Substituted: 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 Revenue Probable Change in Number of * * Year Gain/(Loss) from Savings/(Cost) from State Employees from * * Pharmacy Board Pharmacy Board FY 1999 * * Operating Account/ Operating Account/ * * GR-Dedicated GR-Dedicated * * 0523 0523 * * 2000 $1,654,080 $(1,574,930) 27.0 * * 2001 1,800,000 (1,777,974) 40.0 * * 2002 1,800,000 (1,747,034) 40.0 * * 2003 1,800,000 (1,747,034) 40.0 * * 2004 1,800,000 (1,747,034) 40.0 * ************************************************************************** Technology Impact The bill would require information technology equipment costs of $170,000 and programming costs of $70,000 in the first year; and information technology equipment costs of $31,000 in the second year. Fiscal Analysis The bill would amend the Texas Pharmacy Act by requiring pharmacy technicians to register with the Board of Pharmacy and would allow the board to adopt fees necessary to cover the cost of registering pharmacy technicians. The bill would also require professional and supplemental liability insurance providers for pharmacists, pharmacy technicians, or druggist's professional liability insurance covering pharmacists, pharmacy technicians, or pharmacy license holders to submit to the board specific information regarding claims against insured pharmacists, pharmacy technicians, or pharmacy license holders within specific periods of time. This act would take effect September 1, 1999, except for the section regarding registration of pharmacy technicians, which would take effect on January 1, 2001. Methodology The Board of Pharmacy estimates that an additional 26 FTEs in fiscal year 2000 and 13 FTEs in fiscal year 2001 would be required to implement the provisions of the bill and that a similar number would be required in fiscal years 2002-2004. The board estimates that 40,000 pharmacy technician registrations would be issued in fiscal year 2000 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 2000 as a result regulating pharmacy technicians and that the number of complaints would increase by one percent each following year. The board estimates that a fee of $45 would be established as the pharmacy technicians registration fee and that pharmacist and pharmacy license fees would increase by $64 in fiscal year 2000 and would decrease by $64 in 2001 to cover necessary costs. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 515 Board of Pharmacy LBB Staff: JK, TP, RT, MW