LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 4, 1997
TO: Honorable Barry Telford, Chair IN RE: House Bill No. 978
Committee on Pensions and Investments By: Hupp
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB978 ( Relating
to the eligibility of certain higher education employees to
participate in group programs under the Texas Employees Uniform
Group Insurance Benefits Act.) this office has detemined the
following:
Biennial Net Impact to General Revenue Funds by HB978-As Introduced
Implementing the provisions of the bill would result in a net
positive impact of $1,370,000 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
HB 978 would amend the Uniform Group Insurance Benefits Act
to specify that public community/junior college employees who
are employed outside of Texas are not eligible to participate
in the UGIP.
Methodolgy
Approximately 250 community/junior college employees are currently
employed outside of Texas. The state contributes an average
of $2740 per year per employee for health insurance. Based
on these figures, the state would save $685,000 a year under
this bill.
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
Savings/(Cost)
from General
Revenue Fund
0001
1998 $685,000
1998 685,000
2000 685,000
2001 685,000
2002 685,000
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $685,000
1999 685,000
2000 685,000
2001 685,000
2002 685,000
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: 454 Department of Insurance
327 Employees Retirement System
LBB Staff: JK ,PE ,SC