LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 4, 2001
TO: Honorable Patricia Gray, Chair, House Committee on Public
Health
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB576 by Janek (Relating to the standardization of
credentialing of physicians and providers.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB576, 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 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 *
* General Revenue Fund General Revenue Fund FY 2001 *
* 0001 0001 *
* 2002 $(146,140) $146,140 4.0 *
* 2003 (138,140) 138,140 4.0 *
* 2004 (138,140) 138,140 4.0 *
* 2005 (138,140) 138,140 4.0 *
* 2006 (138,140) 138,140 4.0 *
**************************************************************************
Fiscal Analysis
The bill would amend the Medical Practice Act by requiring the Board of
Medical Examiners (BME) to develop a Standardized Credentials
Verification Program for the purposes of collecting, verifying,
maintaining and storing physician and provider credentials data. The
bill would require the BME to appoint an advisory committee to advise in
the development of rules and regulations for the administration of the
verification program and would establish requirements for the advisory
committee. The bill would also establish guidelines, powers, duties, and
requirements for the implementation of the verification program and
Designated Credentials Verification Organizations (DCVOs). The bill
would require the BME to regulate and oversee the operations of the DCVOs
and would allow the BME to charge fees to cover the program costs. The
bill would prohibit the collection of duplicate core credentials data by
health care entities and state agencies if the information is already
available through the verification program. The bill would require the
BME to adopt rules necessary to implement the provisions of the bill and
to make the core credentials data available by September 1, 2002. The
bill would also require health care entities to participate in the
verification program on or after the effective date.
The bill would require the BME to implement the provisions of the bill
upon receiving an appropriation for those purposes; otherwise, the bill
would allow the BME to implement the act using other available
appropriations, gifts, grants, or donations.
The bill would take effect September 1, 2001.
Methodology
For the purposes of this analysis it is assumed the BME would carry out
oversight duties by monitoring and auditing the program operations of
four DCVOs for compliance with the requirements of the bill. It is also
assumed DCVOs would serve as the primary contact for health care entities
accessing core credential data, all required fees would be collected by
the DCVOs, DCVOs would remit necessary portions of collected fees to the
BME to cover regulation and oversight costs, and no DCVOs would transfer
core credential data to the BME as a result of failing to meet
contractual obligations.
It is estimated the increased workload created by the bill would require
four FTEs with a cost of $146,140 during the first year and $138,140 in
each subsequent year, to regulate and oversee the operations of the
DCVOs. It is assumed the BME would adopt rules necessary to implement
the provisions of the bill and would charge fees in an amount sufficient
to cover the estimated costs.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 503 Texas State Board of Medical Examiners, 454
Texas Department of Insurance
LBB Staff: JK, HD, MW