LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              April 26, 1999
  
  
          TO:  Honorable Florence Shapiro, Chair, Senate Committee on
               State Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB362  by Hupp (Relating to the eligibility of certain
               higher education employees to participate in group
               programs under the Texas Employees Uniform Group
               Insurance Benefits Act.), As Engrossed
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB362, As Engrossed:  positive impact of $126,810 through the         *
*  biennium ending August 31, 2001.                                      *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2000                              $42,270  *
          *       2001                               84,540  *
          *       2002                              126,810  *
          *       2003                              169,080  *
          *       2004                              211,350  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2000                                  $42,270 *
         *      2001                                   84,540 *
         *      2002                                  126,810 *
         *      2003                                  169,080 *
         *      2004                                  211,350 *
         *****************************************************
  
Technology Impact
  
None.
  
  
Fiscal Analysis
  
The bill would amend the Uniform Group Insurance Benefits Act to specify
that public community/junior college employees who are employed to
perform services outside of Texas would not be eligible to participate
in the UGIP, unless the college specifically elects to permit such
participation.  The bill would only apply to employees hired after
August 31, 1999.
  
  
Methodology
  
The state currently contributes an average of $2,818 per year for health
insurance coverage for each employee.  There are approximately 150
public community/junior college employees currently working
out-of-state.  Assuming an annual turnover rate of 10%, there would be
15 employees ineligible for coverage in fiscal year 2000, 30 employees
ineligible for coverage in fiscal year 2001, 45 employees ineligible for
coverage in fiscal year 2002, 60 employees ineligible for coverage in
2003, and 75 employees ineligible for coverage in fiscal year 2004.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   327   Employees Retirement Sys, 454   Department Of
                   Insurance
LBB Staff:         JK, SD, PE, SC