LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
March 12, 2001
TO: Honorable Patricia Gray, Chair, House Committee on Public
Health
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB93 by Maxey (Relating to the regulation of certain
automated systems used to dispense prescription drugs.),
As Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB93, As Introduced: an impact of $0 through the biennium ending *
* August 31, 2003. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
**************************************************************************
The following table assumes an immediate effective date.
All Funds, Six-Year Impact:
**************************************************************************
*Fiscal Probable Probable Revenue Change in Number of *
* Year Savings/(Cost) from Gain/(Loss) from State Employees from *
* General Revenue Fund General Revenue Fund FY 2001 *
* 0001 0001 *
* 2001 $(18,565) $18,565 0.0 *
* 2002 (106,649) 106,649 1.0 *
* 2003 (81,039) 81,039 1.0 *
* 2004 (81,039) 81,039 1.0 *
* 2005 (81,039) 81,039 1.0 *
* 2006 (81,039) 81,039 1.0 *
**************************************************************************
The following table assumes a 90 day effective date.
All Funds, Five-Year Impact:
**************************************************************************
*Fiscal Probable Probable Revenue Change in Number of *
* Year Savings/(Cost) from Gain/(Loss) from State Employees from *
* General Revenue Fund General Revenue Fund FY 2001 *
* 0001 0001 *
* 2002 $(125,216) $125,216 1.0 *
* 2003 (81,039) 81,039 1.0 *
* 2004 (81,039) 81,039 1.0 *
* 2005 (81,039) 81,039 1.0 *
* 2006 (81,039) 81,039 1.0 *
**************************************************************************
Technology Impact
The agency would have to modify its data processing system to
accommodate the data generated by the bill. It is anticipated that
approximately $21,000 will be required for the analysis, design, coding,
testing and implementation to the agency's computer system.
Fiscal Analysis
The bill would require the Texas State Board of Pharmacy (TSBP) to adopt
rules regarding the use of an automated pharmacy system located at a
health care facility regulated by the state, and at a remote location
from that of a Class A (Community) or Class C (Institutional) pharmacy,
by February 24, 2002.
The bill would take immediate effect if it receives the required
two-thirds vote in both chambers. Otherwise, the effective date is 90
days.
Methodology
The Pharmacy Board assumes about 1,100 facilities would use an automated
pharmacy system requiring regulation and inspection by TSBP. Initial
startup costs of $125,216 includes an estimated 270 hours for initial
data entry and implementation of the provisions of the bill.
Table 1 assumes the bill would take effect immediately and the agency
would incur approximately $18,565 of start-up costs in FY 2001. In FY
2002, the agency estimates additional costs of $106,649 associated with
additional operating costs and the need for one FTE to conduct biennial
inspections of the remote facilities. Table 2 assumes a 90 day effective
date and all start-up costs are in FY 2002.
It is assumed the agency would adjust fees to cover any costs associated
with the implementation of the bill.
The Comptroller's e-Texas report states there could be total State and
Federal savings of $5 million annually to Medicaid if all nursing
facilities with more than 100 beds purchased or leased an automated drug
dispensing machine. The e-Texas report also stated that actual savings
would depend on the actions of individual care facilities.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 324 Texas
Department of Human Services, 515 Texas State Board
of Pharmacy
LBB Staff: JK, HD, RT, ER, KG