LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 28, 1997 TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 1328 Committee on State Affairs By: Fraser Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB1328 ( Relating to the eligibility of certain higher education employees to participate in group programs under the Texas Employees Uniform Group Insurance Benefits Act.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB1328-As Introduced Implementing the provisions of the bill would result in a net positive impact of $1,370,000 to General Revenue Related Funds through the biennium ending August 31, 1999. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. Fiscal Analysis This bill would amend the Uniform Group Insurance Benefits Act to specify that public community and junior college employees who are employed outside of the state of Texas are not eligible to participate in the Uniform Group Insurance Program. Methodolgy Approximately 250 community and junior college employees are currently employed outside of Texas. The state contributes an average of $2,740 per year per employee for health insurance. Based on these figures, the state would save $685,000 a year under this bill. The probable fiscal implications of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Five Year Impact: Fiscal Year Probable Savings/(Cost) from General Revenue Fund 0001 1998 $685,000 1998 685,000 2000 685,000 2001 685,000 2002 685,000 Net Impact on General Revenue Related Funds: The probable fiscal implication to General Revenue related funds during each of the first five years is estimated as follows: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $685,000 1999 685,000 2000 685,000 2001 685,000 2002 685,000 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. If a public community or junior college whose employees were affected by this bill chose to purchase other health insurance coverage for those employees, and pay for it out of local funds, there would be a negative fiscal impact. Source: Agencies: 327 Employees Retirement System 454 Department of Insurance LBB Staff: JK ,JD ,SC