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