LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 12, 2001
TO: Honorable Kenneth Armbrister, Chair, Senate Committee on
Criminal Justice
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB347 by Brown, J. E. "Buster" (Relating to the purchase
of prescription drugs for persons confined in
institutions operated by the Texas Department of
Criminal Justice.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB347, As Introduced: positive impact of $9,888,000 through the *
* biennium ending August 31, 2003. *
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General Revenue-Related Funds, Five-Year Impact:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $4,915,000 *
* 2003 4,973,000 *
* 2004 5,069,000 *
* 2005 5,191,000 *
* 2006 5,295,000 *
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All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Change in Number of State *
* Year General Revenue Fund Employees from FY 2001 *
* 0001 *
* 2002 $4,915,000 0.0 *
* 2003 4,973,000 0.0 *
* 2004 5,069,000 0.0 *
* 2005 5,191,000 0.0 *
* 2006 5,295,000 0.0 *
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Fiscal Analysis
The bill would require that any contract between the Correctional Managed
Health Care Committee and the University of Texas Medical Branch at
Galveston for managed health care include provisions to ensure that the
university is eligible for and makes reasonable efforts to purchase
prescription drugs under Section 340B of the Public Health Service Act
(U.S.C. Section 256b). The bill would also authorize the University of
Texas Medical Branch to contract directly with the Texas Tech University
Health Science Center (TTUHSC) for the provision of health care
services, and it would direct TTUHSC to cooperate in efforts to purchase
prescription drugs under Section 340B. The bill would take effect
September 1, 2001.
Methodology
The cost savings associated with the bill are based on estimates from the
Comptroller of Public Accounts. During fiscal year 1999, it is
estimated that $27.8 million in prescription drug purchases would have
qualified for purchase under Section 340B of the Public Health Service
Act at a potential cost savings of 17.7 percent. The resultant $4.9
million in savings were used as the potential cost savings for fiscal
year 2002. Cost savings are projected to increase at 1.2 percent to 2.4
percent per year.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 739 Texas Tech University Health Sciences Center,
720 The University of Texas System, 696 Texas
Department of Criminal Justice
LBB Staff: JK, JC, VS