LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 9, 1997
         
         
      TO: Honorable Harvey Hilderbran, Chair            IN RE:  Senate Bill No. 487, As Engrossed
          Committee on Human Services                              By: Zaffirini
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB487 ( Relating 
to payment under contracts with the Texas Rehabilitation Commission 
for vocational rehabilitation services.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by SB487-As Engrossed
         
No significant fiscal implication to the State is anticipated.
         
This bill would implement Texas Performance Review recommendation 
HHS18 in "Disturbing the Peace: The Challenge of Change in Texas 
Government." The bill would amend the Human Resources Code to 
require the Texas Rehabilitation Commission to base vendor payments 
on outcome-based performance standards as defined in all vocational 
contracts issued on or after January 1,1998.  Moving to performance-based 
contracting could reduce state costs and have a positive effect 
on the state's cash flow.
         
 
          
No significant fiscal implication to units of local government 
is anticipated.
          
   Source:            Agencies:   
                                         304   Comptroller of Public Accounts
                                         330   Rehabilitation Commission
                      LBB Staff:   JK ,BB ,ER