LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 10, 2001
TO: Honorable Mike Moncrief, Chair, Senate Committee on
Health & Human Services
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2729 by Gray (Relating to allowing the donation of
certain unused prescription drugs to charitable medical
clinics.), Committee Report 2nd House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2729, Committee Report 2nd House, Substituted: an impact of $0 *
* through the biennium ending August 31, 2003, for both Scenario 1 *
* and Scenario 2. *
* *
* 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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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 *
* Food and Drug Food and Drug FY 2001 *
* Registration Registration *
* Account/ Account/ *
* GR-Dedicated GR-Dedicated *
* 5024 5024 *
* 2002 $(1,764,669) $4,620,000 45.0 *
* 2003 (1,764,669) 5,775,000 45.0 *
* 2004 (1,764,669) 5,775,000 45.0 *
* 2005 (1,764,669) 5,775,000 45.0 *
* 2006 (1,764,669) 5,775,000 45.0 *
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Scenario 1 is the table above. Scenario 2 is the table below.
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*Fiscal Probable Probable Revenue Change in Number of *
* Year Savings/(Cost) from Gain/(Loss) from State Employees from *
* Food and Drug Food and Drug FY 2001 *
* Registration Registration *
* Account/ Account/ *
* GR-Dedicated GR-Dedicated *
* 5024 5024 *
* 2002 $0 $0 0.0 *
* 2003 0 0 0.0 *
* 2004 0 0 0.0 *
* 2005 0 0 0.0 *
* 2006 0 0 0.0 *
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Fiscal Analysis
The bill would provide for a drug donation program where convalescent or
nursing home, hospice, hospital, physician, pharmacy, or individual may
donate unused prescription drugs to a charitable medical clinic.
Appropriate safeguards would be required. The bill would provide for
prohibited acts and for limits on a donor's and charitable medical
clinic's liability.
Methodology
Scenario 1
According to Texas Department of Health (TDH), current law would require
a donor of prescription drugs to be licensed as a wholesale drug
distributor. TDH estimates 77,000 entities would be need to be licensed.
Forty-five additional FTEs (44 Natural Resource Specialist IVs and 1
Natural Resource Specialist V) would be needed to accommodate these
entities. Fees are required of new licensees in the amount of $60 per
licensee in FY 2002, and $75 per licensee in FYs 2003-06. It is assumed
77,000 entities would be licensed. Fees are deposited into a General
Revenue-Dedicated account, the Food and Drug Registration Account.
Scenario 2
It is assumed that entities would choose not to be licensed; therefore,
no FTEs would be needed. There would be no fiscal impact.
TDH assumes it would have no costs other than those related to licensing.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 529 Health and Human Services Commission, 501
Texas Department of Health
LBB Staff: JK, HD, PP, AJ