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
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* 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. *
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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