LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 23, 1995



 TO:     Honorable Ken Armbrister, Chair        IN RE:  House BillNo. 1091,
         Committee on State Affairs                            as engrossed
         Senate                                         By: Brimer, et al.
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
1091 (relating to the consolidation of the Texas Workers'
Compensation Research Center and the Legislative Oversight
Committee for worker's compensation and to the functions of the
new entity) 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.

The Texas Workers' Compensation Research Center 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 Legislative Oversight Committee is
abolished September 1, 1995.

The bill would merge the duties and functions of the Workers'
Compensation Research Center and the Legislative Oversight
Committee into a new entity to be known as the Research and
Oversight Council on Workers' Compensation, and make other
changes to the enabling statute.  Some of the more significant
changes include: restructuring the board of directors; requiring
the Council to conduct professional studies and research on key
aspects of the workers' compensation system to assess the
operational effectiveness of the workers' compensation system;
authorizing the Council to apply for and use federal funds with
the approval of its board of directors; and authorizing the
Council to collect information from the Texas Workers'
Compensation Insurance Fund and determine the Fund's impact on    




the workers' compensation system.
 
The amount set forth for the administration of the Workers'
Compensation Research Center in the General Appropriations Act as
introduced (FY 96 = $668,490; FY 97 = 668,490) would contingent
on the enactment of House Bill 1091 or similar legislation.  The
appropriations would be financed from a special account in the
General Revenue Fund and would provide for 13 employees.

The bill would create a special account in the state treasury to
be used for the operations of the Research and Oversight Council. 
Revenue collected pursuant to the maintenance tax authorized by
Section 404.003 of the Labor Code would be deposited into this
account.  The revenue loss to the General Revenue Fund-
Consolidated would be offset by a like reduction in
appropriations out of the General Revenue Fund-Consolidated as
appropriations for the Research and Oversight Council would be
made out of the special account  which would be created by this
bill.

No net fiscal implications to the state are anticipated to result
from the establishment of the Research and Oversight Council on
Workers' Compensation. 




No fiscal implication to units of local government is
anticipated.


Source:   Comptroller of Public Accounts, Workers' Compensation
Commission,
                         Department of Insurance, Workers'
Compensation Research Center
          LBB Staff: JK, KVO, DF