LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 86TH LEGISLATIVE REGULAR SESSION
 
April 9, 2019

TO:
Honorable Senfronia Thompson, Chair, House Committee on Public Health
 
FROM:
John McGeady, Assistant Director     Sarah Keyton, Assistant Director
Legislative Budget Board
 
IN RE:
HB3284 by Sheffield (Relating to prescribing and dispensing controlled substances and monitoring the prescribing and dispensing of controlled substances under the Texas Controlled Substances Act; providing for administrative penalties.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB3284, As Introduced: an impact of $0 through the biennium ending August 31, 2021.

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
2020 $0
2021 $0
2022 $0
2023 $0
2024 $0




Fiscal Year Probable Savings/(Cost) from
General Revenue Fund
1
Probable Revenue Gain/(Loss) from
General Revenue Fund
1
Change in Number of State Employees from FY 2019
2020 ($184,015) $184,015 2.0
2021 ($175,175) $175,175 2.0
2022 ($175,175) $175,175 2.0
2023 ($175,175) $175,175 2.0
2024 ($175,175) $175,175 2.0

Fiscal Analysis

The bill would amend the Health and Safety Code as it relates to prescribing and dispensing controlled substances and monitoring the prescribing and dispensing of controlled substances under the Texas Controlled Substances Act; providing for administrative penalties.

The provisions of the bill would add reporting requirements for veterinarians who dispense controlled substances. The bill would require electronic prescriptions for controlled substances except in certain circumstances.

Under the provisions of the bill, the Texas State Board of Pharmacy (TSBP) may not permit the
Department of Public Safety (DPS) and other law enforcement or prosecutorial staff access to
information in the Prescription Monitoring Program (PMP) database unless TSBP is provided a
warrant, subpoena, or other court order, at which point DPS, other law enforcement, or
prosecutorial staff may submit a request for information to TSBP. The bill requires that
TSBP notify relevant regulatory agencies of the disclosure of information in certain
circumstances.

The bill would authorize access to information in the PMP for health care facilities certified by the federal Centers for Medicare and Medicaid Services.

The bill would add restrictions to a prescriber's authority to prescribe controlled substances for acute pain.

The bill would take effect September 1, 2019.

Methodology

Under the provisions of the bill, DPS, other law enforcement, or prosecutorial staff that obtain a warrant, subpoena, or other court order may submit a request for information in the PMP to TSBP.

To implement the provisions of the bill, TSBP indicates that it would require two additional
full-time-equivalent (FTE) positions. The cost for two FTEs would be $170,643 in fiscal year 2020
and each fiscal year thereafter, and an additional $13,372 in other operating and equipment costs
would be needed in fiscal year 2020 and $4,532 in each subsequent fiscal year.

The estimated total to comply with the provisions of the bill would be $184,015 in fiscal year
2020 and $175,175 in each subsequent fiscal year.

This analysis assumes that any increased cost to TSBP for the PMP, which is supported by seven agencies who are statutorily required to generate sufficient revenue to cover its costs of operation, would be offset by an increase in fee generated revenue.

DPS, the Department of Licensing and Regulation, the Texas Medical Board, the Board of Dental Examiners, and the Board of Veterinary Medical Examiners indicate the provisions of the bill could be implemented using existing resources.

Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
405 Department of Public Safety, 452 Department of Licensing and Regulation, 503 Texas Medical Board, 504 Texas State Board of Dental Examiners, 515 Board of Pharmacy, 578 Board of Veterinary Medical Examiners
LBB Staff:
WP, AKi, SGr, ESt, DFR