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