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