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