LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 23, 2001 TO: Honorable Patricia Gray, Chair, House Committee on Public Health FROM: John Keel, Director, Legislative Budget Board IN RE: SB65 by Moncrief (Relating to the regulation of telepharmacy as a method to dispense drugs.), Committee Report 2nd House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB65, Committee Report 2nd House, Substituted: 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. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2001 $0 * * 2002 0 * * 2003 0 * * 2004 0 * * 2005 0 * **************************************************** All Funds, Six-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Probable Savings/(Cost) from * * Year General Revenue Fund General Revenue Fund * * 0001 0001 * * 2001 $(22,159) $22,159 * * 2002 0 0 * * 2003 0 0 * * 2004 0 0 * * 2005 0 0 * *************************************************************************** Technology Impact The Board of Pharmacy (TSBP) would have to modify its data processing system to accommodate the data generated by the bill. It is anticipated approximately $21,000 will be required for the analysis, design, coding, testing and implementation of these changes to the agency's computer system. Fiscal Analysis The bill would require the Board of Pharmacy to adopt rules regarding the use of telepharmacy systems located at certain health care facilities and remote from that of a Class A (Community) or Class C (Institutional) pharmacy, by February 28, 2002. The bill would take effect September 1, 2001. Methodology The Pharmacy Board estimates that about 497 facilities would use a telepharmacy system requiring regulation and inspection by TSBP. Initial startup costs of $22,159 includes an estimated 62 hours for initial data entry and implementation of the provisions of the bill. The bill would take effect September 1, 2001, and the agency would incur approximately $22,159 of costs in FY 2002. In subsequent years, there would be no significant fiscal costs to the agency. It is assumed the TSBP would adjust fees collected by the agency to offset any costs associated with the bill. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 515 Texas State Board of Pharmacy LBB Staff: JK, HD, ER, RT