LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session February 20, 1995 TO: Honorable Kim Brimer, Chair IN RE: House Bill No. 1091 Committee on Business & Industry By: Brimer, Counts, House of Representatives Junell 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 workers' 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, RR