LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 1, 1995



 TO:     Honorable Kim Brimer                   IN RE: Committee Substitute
         Committee on Business & Industry       for
         House of Representatives                              House Bill
         Austin, Texas                          No. 1090
                                                        By: Brimer, Counts,
                                                Junell








FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
1090 (relating to the continuation and functions of the Texas
Workers' Compensation Insurance Fund) this office has determined
the following:

The Texas Workers' Compensation Insurance Fund is subject to the
provisions of the Texas Sunset Act, and unless continued in
existence by the legislature, will be abolished effective
September 1, 1995.

The bill would continue the Texas Workers' Compensation Insurance
Fund and make several changes to the enabling statute.  Some of
the more significant changes include providing additional
legislative oversight of the Fund, authorizing the Fund to
combine commonly-owned or commonly-controlled businesses for the
purposes of insurance and requiring the Fund to file its annual
report with the Texas Department of Insurance (TDI) no later than
March 1st of each year.

The Texas Workers' Compensation Insurance Fund is not a state
agency nor a unit of local government and receives no
appropriation of state funds.  Consequently, no fiscal
implication to the state resulting from the implementation of
provisions of the bill is anticipated.

The bill contains two provisions which would result in a savings    




to the Texas Workers' Compensation Insurance Fund.  One provision
would change the statute to authorize the Texas Workers'
Compensation Insurance Fund to require a business owner seeking
workers' compensation insurance from the Texas Workers' 
Compensation Insurance Fund through the insurer of last resort
program to insure all commonly-owned or commonly-controlled
businesses.  This provision could result in a savings through a
reduction in premium loss and inappropriate claims payments.  The
estimated savings of this provision cannot be determined as the
amount of savings generated through a reduction in premium loss
and claims payments cannot be estimated.

The second provision, which would require the Texas Workers'
Compensation Insurance Fund to complete its annual report and
file the report with the Texas Department of Insurance no later
than March 1 of each fiscal year, would result in a savings to
the Texas Workers' Compensation Insurance Fund of approximately
$109,000 per year.  This savings would occur as a result of
eliminating the  payment of overtime wages in order to meet
previous reporting requirements.


No fiscal implication to units of local government is
anticipated.


Source:   Sunset Advisory Commission, State Auditor's Office,
                         Workers' Compensation Commission
          LBB Staff: JK, KVO, RR