LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 26, 2025 TO: Honorable Gary VanDeaver, Chair, House Committee on Public Health FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1027 by Shaheen (Relating to the provision of telepharmacy services.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1027, As Introduced: an impact of $0 through the biennium ending August 31, 2027. General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2026$02027$02028$02029$02030$0All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Revenue Gain fromGeneral Revenue Fund1 Change in Number of State Employees from FY 20252026($2,346,431)$2,346,43120.02027($1,773,913)$1,773,91320.02028($1,773,913)$1,773,91320.02029($1,773,913)$1,773,91320.02030($1,773,913)$1,773,91320.0 Fiscal AnalysisThe bill would amend Section 562.110 of the Occupations Code to remove the requirement for the Board of Pharmacy to adopt rules limiting the types of health care facilities at which a telepharmacy system may be located and the locations eligible to be licensed as remote dispensing sites.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
March 26, 2025
TO: Honorable Gary VanDeaver, Chair, House Committee on Public Health FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1027 by Shaheen (Relating to the provision of telepharmacy services.), As Introduced
TO: Honorable Gary VanDeaver, Chair, House Committee on Public Health
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB1027 by Shaheen (Relating to the provision of telepharmacy services.), As Introduced
Honorable Gary VanDeaver, Chair, House Committee on Public Health
Honorable Gary VanDeaver, Chair, House Committee on Public Health
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB1027 by Shaheen (Relating to the provision of telepharmacy services.), As Introduced
HB1027 by Shaheen (Relating to the provision of telepharmacy services.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1027, As Introduced: an impact of $0 through the biennium ending August 31, 2027.
Estimated Two-year Net Impact to General Revenue Related Funds for HB1027, As Introduced: an impact of $0 through the biennium ending August 31, 2027.
General Revenue-Related Funds, Five- Year Impact:
2026 $0
2027 $0
2028 $0
2029 $0
2030 $0
All Funds, Five-Year Impact:
2026 ($2,346,431) $2,346,431 20.0
2027 ($1,773,913) $1,773,913 20.0
2028 ($1,773,913) $1,773,913 20.0
2029 ($1,773,913) $1,773,913 20.0
2030 ($1,773,913) $1,773,913 20.0
Fiscal Analysis
The bill would amend Section 562.110 of the Occupations Code to remove the requirement for the Board of Pharmacy to adopt rules limiting the types of health care facilities at which a telepharmacy system may be located and the locations eligible to be licensed as remote dispensing sites.
Methodology
According to analysis by the Board of Pharmacy, the bill would increase the number of pharmacies eligible to provide pharmacy services through a remote telepharmacy system at locations separate from the pharmacy. Assuming that half of all eligible pharmacies choose to have remote pharmacies, the number of pharmacy licenses in the state would increase by approximately 5,905, or 20 percent. Based on the agency's current staffing needs for pharmacy licensing and enforcement, along with indirect administration, the Board of Pharmacy estimates needing 20.0 additional FTE positions to implement the bill's provisions. This analysis assumes FTE salaries to be equal to the midpoint of the current State Auditor's Office midpoint for each position. To conduct pharmacy technician compliance inspections, the agency would require 8.0 Inspector V FTEs with annual salaries of $62,136 and benefits of $18,579. To conduct pharmacist compliance inspections, the agency would require 2.0 Pharmacist I FTEs with annual salaries of $113,278 and benefits of $33,870. To investigate and process complaints arising from the additional pharmacy locations, the agency would require: 3.0 Investigator IV FTEs with annual salaries of $58,288 and benefits of $17,429; 1.0 Attorney III FTE with an annual salary of $102,980 and benefits of $30,792; and 1.0 Legal Assistant III FTE with an annual salary of $66,255 and benefits of $19,811. To process the additional pharmacy licenses, the agency would require 2.0 License and Permit Specialist III FTEs with annual salaries of $51,204 and benefits of $15,257. To support these additional FTEs, the agency would require: 1.0 Accountant III FTE with an annual salary of $58,288 and benefits of $17,429; an Information Technology Support Specialist V FTE with an annual salary of $75,376 and benefits of $22,538; and a Human Resources Specialist III with an annual salary of $62,136 and benefits of $18,579. The Board of Pharmacy would require $5,200 for each of the 20.0 additional FTEs in fiscal year 2026 for one-time costs for equipment and supplies. Additionally, 13.0 of the additional FTEs (the Inspector V, Pharmacist I, and Investigator IV positions) are positions for which the agency provides a state vehicle due to the positions requiring frequent travel. The agency would require $35,600 for those 13.0 FTEs in fiscal year 2026 for one-time costs for vehicles, as well as a total of $5,718 for various field equipment. The Board of Pharmacy assesses a fee of $150 for pharmacy licenses and license renewals, which are required every other year. According to the Comptroller of Public Accounts, using the above assumptions the bill's provisions would result in $443,000 in annual revenue credited to the General Revenue Fund. Pursuant to Occupations Code, Section 554.006(b), the Board of Pharmacy is required to generate sufficient revenues to cover the cost of agency appropriations and the other direct and indirect costs appropriated to other state agencies. Due to the cost estimate above exceeding the amount of excess fee revenue currently generated by the Board of Pharmacy, this analysis assumes the agency would be required to raise fees in an amount sufficient to cover the cost of implementing the bill's provisions.
The Board of Pharmacy would require $5,200 for each of the 20.0 additional FTEs in fiscal year 2026 for one-time costs for equipment and supplies. Additionally, 13.0 of the additional FTEs (the Inspector V, Pharmacist I, and Investigator IV positions) are positions for which the agency provides a state vehicle due to the positions requiring frequent travel. The agency would require $35,600 for those 13.0 FTEs in fiscal year 2026 for one-time costs for vehicles, as well as a total of $5,718 for various field equipment. The Board of Pharmacy assesses a fee of $150 for pharmacy licenses and license renewals, which are required every other year. According to the Comptroller of Public Accounts, using the above assumptions the bill's provisions would result in $443,000 in annual revenue credited to the General Revenue Fund. Pursuant to Occupations Code, Section 554.006(b), the Board of Pharmacy is required to generate sufficient revenues to cover the cost of agency appropriations and the other direct and indirect costs appropriated to other state agencies. Due to the cost estimate above exceeding the amount of excess fee revenue currently generated by the Board of Pharmacy, this analysis assumes the agency would be required to raise fees in an amount sufficient to cover the cost of implementing the bill's provisions.
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, 529 Health and Human Services Commission
304 Comptroller of Public Accounts, 515 Board of Pharmacy, 529 Health and Human Services Commission
LBB Staff: b > td > JMc, NPe, GDZ, DPE
JMc, NPe, GDZ, DPE