LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session March 22, 1999 TO: Honorable Sherri Greenberg, Chair, House Committee on Pensions & Investments 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 Introduced ************************************************************************** * Two-year Net Impact to General Revenue Related Funds for HB362, As * * Introduced: 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 specifiy 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: LBB Staff: JK, PE, SC