LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 19, 1995



 TO:     Honorable Ken Armbrister, Chair        IN RE:  House BillNo. 1264,
         Committee on State Affairs                             asengrossed
         Senate                                         By: Dear
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
1264 (relating to service required under the Teacher Retirement
System of Texas in certain circumstances to qualify for group
insurance coverage) this office has determined the following:

The bill would make those Teacher Retirement System of Texas
members who purchase out-of-state service credit and have at
least five years of TRS service credit eligible for TRS  retiree
health insurance.   Currently such individuals must have at least
10 years of service credit.

There would be no cost to funds from which the Legislature
appropriates money.  The bill would result in increased costs to
the TRS retiree insurance fund.    It is estimated that as many
as 200 additional TRS members would be eligible for insurance
benefits under this bill, at  annual cost of $370,000 to the TRS
insurance fund.


No fiscal implication to units of local government is
anticipated.


Source:   Teacher Retirement System and Optional Retirement
Program
          LBB Staff: JK, RN, DF