LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 6, 1997
         
         
      TO: Honorable David Sibley, Chair            IN RE:  Senate Bill No. 641
          Committee on Economic Development                              By: Harris
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB641 ( Relating 
to a physician who accepts a financial incentive; imposing penalties.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB641-As Introduced
         
No significant fiscal implication to the State is anticipated. 
 
         
The bill would impose penalties upon a physician who accepts 
a financial incentive to limit medically necessary services 
to a patient.  The bill does not prohibit a physician from entering 
into capitated methods of compensation.  Costs related to the 
bill are minimal and can be absorbed within the budget of the 
Board of Medical Examiners.
         
 
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   503   Board of Medical Examiners
                                         
                      LBB Staff:   JK ,TH ,AC