LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
 
May 21, 2009

TO:
Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
SB2397 by Nelson (Relating to the licensing and regulation of physicians, physician assistants, acupuncturists, and surgical assistants.), Committee Report 2nd House, Substituted



Estimated Two-year Net Impact to General Revenue Related Funds for SB2397, Committee Report 2nd House, Substituted: an impact of $0 through the biennium ending August 31, 2011.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2010 $0
2011 $0
2012 $0
2013 $0
2014 $0




Fiscal Year Probable (Cost) from
General Revenue Fund
1 		Probable Revenue Gain from
General Revenue Fund
1 		Change in Number of State Employees from FY 2009
2010 ($252,867) $252,867 1.0
2011 ($80,968) $80,968 1.0
2012 ($80,968) $80,968 1.0
2013 ($80,968) $80,968 1.0
2014 ($80,968) $80,968 1.0

Fiscal Analysis

The bill would amend the Occupations Code relating to the licensing and regulation of physicians, physician assistants, acupuncturists, and surgical assistants.  The bill requires that on request by a physician under review, the Texas Medical Board (TMB) shall make a recording of the informal settlement conference proceeding.  The bill also requires respondents to be notified of complaints by personal delivery or certified mail. 

The bill would take effect September 1, 2009.


Methodology

Based on the analysis provided by TMB, the agency estimates a one time cost of $155,000 in FY 2010 for equipment and software to support recordings and storage of recordings.  For the purpose of this analysis TMB estimates it will require one FTE (Systems Analyst III at a salary of $44,254 plus benefits and operating costs) to support the ISC hearing, technical support and administration.  In addition, according to the provisions of the bill, personal delivery or certified mail is required for complaint notification and TMB estimates the cost for certified mail is $5.25. Based on information from the TMB, there are approximately 4,585 complaints totaling $24,071 for delivery costs.

Based on the analysis of the Department of Insurance, duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.

For the purposes of this analysis, it is assumed that the TMB would adjust license fees as necessary to cover any additional costs associated with the implementation of this bill.


Technology

The agency estimates additional costs for equipment and software to support recordings and storage.  TMB estimates is would need one server at a cost of $35,000 and one storage appliance at an estimated cost of $120,000 which will be used for capacity, additional storage and security. 


Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
304 Comptroller of Public Accounts, 454 Department of Insurance, 503 Texas Medical Board
LBB Staff:
JOB, CL, MW, NV