LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 2, 1995



 TO:     Honorable John Smithee, Chair          IN RE:  House Bill No. 776
         Committee on Insurance                         By: Smithee
         House of Representatives
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
776 (relating to the acceptance of certain federal funds by the
Texas Department of Insurance) this office has determined the
following:

The bill would allow the Department of Insurance to accept
federal funds for consumer education programs relating to
insurance issues.  The insurance commissioner would be authorized
to adopt rules as necessary for implementation of the bill.

The Department presently receives federal funds indirectly
through an interagency contract with the Department on Aging.  
The bill would allow the Department to receive directly
approximately $80,000 per year for an insurance consumer
education program.

Any costs associated with the bill's provisions could be absorbed
within existing similar functions.  The bill's provisions would
change the identification of a method of financing agency
activities from "Interagency Contract" to "Federal Funds."  
However, the agency would not anticipate a change in revenues
received.


No significant fiscal implication to the State or units of local
government is anticipated.


Source:   Department of Insurance
          LBB Staff: JK, RM, RR