LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 25, 2001 TO: Honorable Bill Ratliff, Lieutenant Governor Honorable James E. "Pete" Laney, Speaker of the House FROM: John Keel, Director, Legislative Budget Board IN RE: SB768 by Madla (Relating to the regulation of the practice of pharmacy and the dispensing of certain drugs.), Conference Committee Report ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB768, Conference Committee Report: 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 * * 2002 $0 * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable Probable Revenue Change in Number of * * Year Savings/(Cost) from Gain/(Loss) from State Employees from * * Pharmacy Board Pharmacy Board FY 2001 * * Operating Account/ Operating Account/ * * GR-Dedicated GR-Dedicated * * 0523 0523 * * 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 of these changes to the agency's computer system. Fiscal Analysis The bill would require the Board of Pharmacy (TSBP) to adopt rules regarding the placement of an emergency drug kit in nursing homes. The bill would take effect September 1, 2001. 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. In fiscal year 2002, the agency estimates additional costs of $125,216 associated with operating costs and the need for one FTE to conduct biennial inspections of the remote facilities with costs of $81,039 in each subsequent year. It is assumed the agency would adjust fees to offset any costs associated with the implementation of 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, RT, ER