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:
  
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*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