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