According to the Legislative Budget Board (LBB), HB 1027 is expected to have no net fiscal impact on General Revenue–related funds over the biennium ending August 31, 2027. However, it does carry important implications for state agency operations and funding mechanisms. The Texas Board of Pharmacy anticipates a substantial increase in pharmacy licenses—approximately 5,905 new licenses, or a 20% increase—due to the expanded eligibility of pharmacies to provide services through telepharmacy systems under the bill’s provisions.

To manage this growth, the LBB estimates the need for 20 new full-time employees (FTEs), including inspectors, investigators, attorneys, licensing specialists, and administrative support staff. These roles are necessary for licensing, conducting compliance inspections, and investigating complaints related to telepharmacy operations. The total cost for staffing and related one-time equipment and vehicle purchases is offset by anticipated revenue gains from increased license and renewal fees, which are currently set at $150 per biennium per license.

The LBB's analysis assumes that the agency would need to increase its licensing fees slightly to fully cover the added costs, as required under Section 554.006(b) of the Occupations Code. This provision mandates that the Board generate sufficient revenue to cover its direct and indirect costs. As a result, while the fiscal note estimates a balanced revenue-cost impact, the bill effectively shifts costs to regulated entities (i.e., pharmacies) through increased licensing activity.

No significant fiscal implications for local governments are expected. Overall, the bill is designed to be self-sustaining through a fee-supported regulatory expansion rather than new General Revenue appropriations.

HB 1027 should be supported as a sound policy measure that advances core liberty principles while maintaining fiscal responsibility and reducing regulatory burden. The bill addresses a pressing access gap in Texas, where over one million residents live in areas underserved by pharmacies. By removing outdated statutory restrictions—such as mileage limits, a ban on dispensing Schedule II controlled substances at remote sites, and mandatory on-site visits from pharmacists—HB 1027 empowers pharmacies to expand services through telepharmacy systems to rural and underserved areas.

Importantly, HB 1027 does not increase the burden on taxpayers. While it does authorize the Texas State Board of Pharmacy to hire 20 additional full-time employees to process and regulate an expected 5,900 new pharmacy licenses, the cost of these positions will be fully offset by licensing fees. State law (Occupations Code §554.006(b)) requires the Board to raise sufficient revenue from its licensees to fund its operations, meaning no General Revenue funding is required.

While there is a small increase in government staffing, the bill does not expand the regulatory reach or scope of government. In fact, HB 1027 reduces the regulatory burden on businesses by eliminating several prescriptive rules that limited where and how pharmacies could operate remotely. This enables more private-sector innovation in healthcare delivery without compromising oversight or safety.

In summary, HB 1027 upholds the principles of limited government and free enterprise while addressing real health access needs. It modernizes regulatory frameworks to reflect current technologies, ensures fiscal neutrality, and removes artificial barriers to business expansion, making it a responsible and liberty-affirming policy proposal. Texas Policy Research recommends that lawmakers vote YES on HB 1027.

• Individual Liberty: The bill directly enhances individual liberty by increasing access to prescription medications and pharmacy services, particularly for residents of rural or underserved areas. Eliminating the 22-mile proximity restriction and other operational limits on telepharmacies empowers Texans to obtain timely care without being constrained by arbitrary geographic barriers. Expanding choice in healthcare providers supports the right of individuals to make decisions about their own health needs.
• Personal Responsibility: HB 1027 facilitates greater personal responsibility by making it easier for individuals to maintain and manage their health. When telepharmacy services are more accessible, patients are more likely to adhere to medication regimens and engage proactively in their own care. This legislative reform removes structural obstacles that have previously discouraged or delayed treatment.
• Free Enterprise: By repealing prescriptive regulations on how and where pharmacies may operate telepharmacy systems, the bill expands opportunities for businesses to enter or grow within the market. It removes artificial barriers such as mileage restrictions, mandatory pharmacist site visits, and dispensing limits, allowing businesses to innovate and respond to community demand. This deregulation enhances competition and reduces compliance costs for pharmacy operators.
• Private Property Rights: While not directly regulating property, the bill supports private property rights by allowing more diverse business uses for commercial properties in areas that previously could not host a remote dispensing site due to restrictive regulations. Landowners and business operators gain new autonomy in how their property may be used for health service delivery.
• Limited Government: HB 1027 exemplifies limited government by repealing several overreaching provisions in the Occupations Code and explicitly prohibiting the Texas State Board of Pharmacy from imposing future mileage restrictions. It shifts away from a top-down, prescriptive model of regulation and instead allows market forces and professional standards to shape service provision. Though the bill modestly increases staffing at the regulatory agency, that operational change is fee-funded and narrowly scoped to accommodate new licensees—not to expand the state’s control over business practices.