LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 27, 1997
         
         
      TO: Honorable Kim Brimer, Chair            IN RE:  House Bill No. 3201, Committee Report 1st House, Substituted
          Committee on Business & Industry                              By: Counts
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB3201 ( Relating 
to the regulation of certain expenses and fees incurred in conjunction 
with the operation of the workers' compensation system.) this 
office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB3201-Committee Report 1st House, Substituted
         
No fiscal implication to the State is anticipated.  
         
Section 1 of the bill would amend Section 402.042, Labor Code, 
to allow the Texas Workers' Compensation Commission (TWCC) to 
charge an entity for the cost of manual data entry in the event 
the executive director waives the requirement for the entity 
to electronically submit data.  Assuming this requirement would 
be waived, revenue gained would be $200,000 in FY 1998, $600,000 
in FY 1999, $350,000 in FY 2000, $250,000 in FY 2001 and $200,000 
in FY 2002.  Revenue declines because it is assumed that more 
entities would begin submitting data electronically.  

Section 
2 of the bill would amend Section 402.073, Labor Code, to allow 
TWCC to require payment by certain parties of SOAH costs.  TWCC 
would gain revenue of $50,917 in FY 1998, $101,833 in FY 1999, 
and $152,750 in FYs 2000, 2001, and 2002.

Section 3 of the 
bill would amend Section 407.082(d), Labor Code, to require 
a certified self-insurer to reimburse TWCC for all pre- and 
post-inspection costs, on-site and off-site.  Revenue gained 
by TWCC would be $3,240 in FY 1998, and $6,480 in FYs thereafter.

Section 
4  of the bill would amend Section 411.064, Labor Code, to require 
insurance companies to reimburse TWCC for costs incurred in 
inspecting accident prevention services.  Revenue gained by 
TWCC would be $85,833 in FY 1998, $171,666 in FY 1999, and $257,500 
in FYs 2000, 2001, and 2002.

Section 5 of the bill would 
amend Section 413.031(c), Labor Code, to state that a party, 
other than an injured worker, who does not prevail at a medical 
dispute resolution review shall pay the reasonable administrative 
costs incurred by TWCC in conducting the review.  This would 
allow TWCC to charge for preauthorization disputes as well as 
withdrawals and dismissals.  Revenue gained by TWCC would be 
$78,333 in FY 1998, $156,667 in FY 1999, and $235,000 in FYs 
2000, 2001, and 2002.

Section 6 of the bill would amend Section 
414.044(c), Labor Code, to allow TWCC to be reimbursed for all 
expenses associated with performance reviews of insurance carriers, 
rather than only travel plus on-site expenses.  This amendment 
would require either the insurance carrier, an agent of the 
carrier, or any person or entity with whom the carrier has contracted 
to provide, review, or monitor services, including a governmental 
entity, to pay the expenses.  Revenue gained by TWCC would be 
$55,598 in FY 1998, $112,373 in FY 1999, $168,480 in FY 2000 
and $200,880 in FYs 2001 and 2002. 

The fact that the provisions 
of this bill result in no net gain to General Revenue is based 
on the assumption that all revenue gains would be appropriated 
to TWCC, and the agency would decrease their maintenance tax 
assessment rate accordingly.  By statute, TWCC must take into 
account all revenue gains when calculating the maintenance tax.
         
 
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,TH