LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 13, 1997
         
         
      TO: Honorable Judith Zaffirini, Chair            IN RE:  House Bill No. 2777, As Engrossed
          Committee on Health & Human Services                              By: Junell
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2777 ( Relating 
to eligibility determination and service delivery of health 
and human services.) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB2777-As Engrossed
         
No significant fiscal implication to the State is anticipated.
         
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 add a stipulation that use of 
savings resulting from streamlining and eliminating duplication 
of services for the further development of an integrated system 
and provision of health and human services would be determined 
by the General Appropriations Act.  In consultation and coordination 
with the governor and the Legislative Budget Board, the Health 
and Human Services Commission is to make and implement recommendations 
regarding competitive bidding and contracting.  The bill would 
allow the commission to automate the determination of client 
eligibility by contracting with a private firm if the commission 
determines that contracting may be effective and federal approval 
is received.
         
 
          
No significant fiscal implication to units of local government 
is anticipated.
          
   Source:            Agencies:   529   Health and Human Services Commission
                                         304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,BB