LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION April 17, 2023 TO: Honorable Stephanie Klick, Chair, House Committee on Public Health FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB594 by Shaheen (Relating to the provision of telepharmacy services.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB594, As Introduced : a negative impact of ($2,982,280) through the biennium ending August 31, 2025. 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 toGeneral Revenue Related Funds2024($1,603,640)2025($1,378,640)2026($1,378,640)2027($1,378,640)2028($1,378,640)All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 20232024($1,603,640)15.02025($1,378,640)15.02026($1,378,640)15.02027($1,378,640)15.02028($1,378,640)15.0 Fiscal AnalysisThe bill would amend the Occupations Code to remove the requirement that the Board of Pharmacy adopt rules that limit the types of healthcare facilities at which a tele-pharmacy system may be located, the locations eligible to be licensed as remote dispensing sites, and the requirement that a pharmacist employed by a provider pharmacy make at least monthly on-site visits to a remote dispensing site. The bill would take effect on September 1, 2023.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
April 17, 2023
TO: Honorable Stephanie Klick, Chair, House Committee on Public Health FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB594 by Shaheen (Relating to the provision of telepharmacy services.), As Introduced
TO: Honorable Stephanie Klick, Chair, House Committee on Public Health
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB594 by Shaheen (Relating to the provision of telepharmacy services.), As Introduced
Honorable Stephanie Klick, Chair, House Committee on Public Health
Honorable Stephanie Klick, Chair, House Committee on Public Health
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB594 by Shaheen (Relating to the provision of telepharmacy services.), As Introduced
HB594 by Shaheen (Relating to the provision of telepharmacy services.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB594, As Introduced : a negative impact of ($2,982,280) through the biennium ending August 31, 2025. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for HB594, As Introduced : a negative impact of ($2,982,280) through the biennium ending August 31, 2025. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
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:
2024 ($1,603,640)
2025 ($1,378,640)
2026 ($1,378,640)
2027 ($1,378,640)
2028 ($1,378,640)
All Funds, Five-Year Impact:
2024 ($1,603,640) 15.0
2025 ($1,378,640) 15.0
2026 ($1,378,640) 15.0
2027 ($1,378,640) 15.0
2028 ($1,378,640) 15.0
Fiscal Analysis
The bill would amend the Occupations Code to remove the requirement that the Board of Pharmacy adopt rules that limit the types of healthcare facilities at which a tele-pharmacy system may be located, the locations eligible to be licensed as remote dispensing sites, and the requirement that a pharmacist employed by a provider pharmacy make at least monthly on-site visits to a remote dispensing site. The bill would take effect on September 1, 2023.
Methodology
Based on the analysis of the Board of Pharmacy, this estimate assumes that implementation of the bill would increase the number of remote pharmacies by 5,790. According to the agency, this would increase the agency's pharmacy licensing base by up to 115 percent. To address this increase in the licensing population, this estimate assumes the agency would require 15 additional full-time equivalents (FTEs) each fiscal year. These FTEs would be comprised of three pharmacist compliance inspectors ($102,747 with estimated benefits of $31,163 per FTE per year), seven pharmacy technician compliance inspectors ($55,602 with estimated benefits of $16,864 per FTE per year), two Licensing Specialists ($45,024 with estimated benefits of $13,655 per FTE per year), three Investigators ($51,985 with estimated benefits of $15,767 per FTE per year). Additionally, the 15 FTEs would require $225,000 in one-time start up costs and $134,880 in annual supplies and material costs.
Technology
As mentioned above, the agency would require $225,000 in one-time technology start up costs.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 515 Board of Pharmacy
304 Comptroller of Public Accounts, 515 Board of Pharmacy
LBB Staff: b > td > JMc, NPe, GDZ, SLee, CMA
JMc, NPe, GDZ, SLee, CMA