LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 2, 1997
TO: Honorable David Sibley, Chair IN RE: House Bill No. 710, Committee Report 2nd House, Substituted
Committee on Economic Development By: Averitt
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB710 ( Relating
to the implementation of federal reforms and the Texas Health
Insurance Risk Pool.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB710-Committee Report 2nd House, Substituted
Implementing the provisions of the bill would result in a net
positive impact of $120,000 to General Revenue Related Funds
through the biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
This bill would amend existing legislation to bring the State
of Texas into compliance with federal legislation concerning
the availability of health insurance for high-risk individuals.
The bill provides for the administration of the Texas Health
Insurance Risk Pool (Pool) which would guarantee insurance coverage
for individuals who do not qualify for health insurance because
of certain medical conditions. The State would assess charges
against health insurance companies in order to fund the Pool.
Section
15 of the bill would require that the Office of the State Auditor
(SOA) conduct annually a special audit of the Pool. The Pool
would remit the amount of each audit to the comptroller for
deposit into the General Revenue fund. Implementing this section
of the bill would result in the following gains to General Revenue:
$50,000 in fiscal year 1998, $70,000 in fiscal year 1999, and
$100,000 in fiscal years 2000, 2001, and 2002. Revenues would
increase as the program reaches full capacity.
Methodolgy
Gains to General Revenue from audits of the Pool were calculated
by multiplying the estimated total hours needed to review and
report on the Pool by the average SOA billing rate.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Revenue
Gain/(Loss) from
General Revenue
Fund
0001
1998 $50,000
1998 70,000
2000 100,000
2001 100,000
2002 100,000
Net Impact on General Revenue Related Funds:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $50,000
1999 70,000
2000 100,000
2001 100,000
2002 100,000
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: Agencies:
LBB Staff: JK ,TH