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