LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                           May 18, 1995



 TO:     Honorable Judith Zaffirini, Chair      IN RE: Committee Substitute
         Committee on Health & Human Services                 forHouse Bill
         Senate                                 No. 1048
         Austin, Texas                                  By: Maxey, et al.









FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
1048 (Relating to the creation of the Texas Health Care
Information Council; providing civil penalties.) this office has
determined the following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

This bill would implement the Comptroller's Gaining Ground
recommendation HHS2 by creating a Health Care Information Council
and Office.

Costs included in Department of Health estimates of fiscal
implications of the bill detailed in the table below include: 
reimbursements for council members; salaries for council staff;
funds for consultant contracts permitted by the bill; 
development of data systems; and other operating costs to
administer the council activities.  The bill also provides for a
designated account in the general revenue fund for all grants and
contributions of money and fees collected by the office and that
all balances may be carried forward from year to year within a
biennium and between biennia.

Gain to the general revenue fund would be through sale of data.

Comptroller estimates state that costs would vary depending on    




the number and types of illnesses reviewed, the services
purchased from consultants, the amount of equipment purchased or 
leased, and the amount of work contracted or performed in-house. 
Comptroller estimates were:  cost to the general revenue fund of
$725,000 in fiscal year 1996, $1,600,000 in fiscal year 1997,
1,800,000 in fiscal year 1998, 1,950,000 in fiscal year 1999 and
2,100,000 in fiscal year 2000.

The probable fiscal implication of implementing the provisions of
the bill during each of the first  five years following passage
is estimated as follows:
     



            Fiscal  Probable Cost Out   Probable Revenue      Change in    
             Year      of  General      Gain to General    Number of State 
                     Revenue Fund 001   Revenue Fund 001    Employees from 
                                                               FY 1995     
                                                                           
          1996                $924,959                                  3.0
          1997               1,788,545             20,000               4.0
                                                                           
          1998               1,788,545             75,000               4.0
                                                                           
          1999               1,788,545             75,000               4.0
          2000               1,788,545             75,000               4.0
                                                                           
                                                                           
                                                                           
       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.

The fiscal implication to  units of local government cannot be
determined.


Source:   Department of Health, Comptroller of Public Accounts
          LBB Staff: JK, KF, DF