LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 22, 1995



 TO:     Honorable John Smithee, Chair          IN RE:  House Bill No. 1985
         Committee on Insurance                         By: Duncan
         House of Representatives
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
1985 (relating to the collection of insurance data) 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 bill would amend Insurance Code provisions relating to
workers' compensation insurance.  The amendments would allow the
Commissioner of Insurance to contract with an advisory
organization for collection of workers' compensation unit
statistical data, detailed claim information, and financial call
data.

Implementation of the provisions of the bill would result in
total additional costs for fiscal year 1996 of approximately
$65,000 for a one-time contract with a statistical agent and
consultant who would develop a statistical plan combining various
workers' compensation data calls currently in use.  Anticipated
expenses for reproducing and distributing the statistical plan
are also included in the total cost estimate.  The bill would
also result in savings of approximately $59,000 each year
beginning in 1997 with elimination of two positions currently
allocated for workers' compensation data collection and auditing.

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          Change in   
             Year   Cost/(Savings) Out  Number of State
                    of  Department of   Employees from 
                        Insurance           FY 1995    
                        Operating                      
                         Fund 036                      
                                                       
          1996                 $64,700               .0
          1997                (59,150)            (2.0)
                                                       
          1998                (59,150)            (2.0)
                                                       
          1999                (59,150)            (2.0)
          2000                (59,150)            (2.0)
                                                       
                                                       
                                                       
       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.

No fiscal implication to units of local government is
anticipated.


Source:   Department of Insurance
          LBB Staff: JK, RM, RR