LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                                May 5, 1999
  
  
          TO:  Honorable Jane Nelson, Chair, Senate Committee on Health
               Services
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1748  by Van de Putte (relating to the long-range plan
               for the Texas Center for Infectious Disease and the
               provision of tuberculosis and communicable infectious
               disease health care and laboratory services), Committee
               Report 2nd House, Substituted
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB1748, Committee Report 2nd House, Substituted:  negative impact     *
*  of $(27,400,000) through the biennium ending August 31, 2001.         *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
*                                                                        *
*  The bill states that the Department of Health is required to          *
*  implement the Act only if the legislature appropriates money          *
*  specifically for that purpose.                                        *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2000                        $(26,400,000)  *
          *       2001                          (1,000,000)  *
          *       2002                          (1,000,000)  *
          *       2003                          (1,000,000)  *
          *       2004                          (1,000,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2000                            $(26,400,000) *
         *      2001                              (1,000,000) *
         *      2002                              (1,000,000) *
         *      2003                              (1,000,000) *
         *      2004                              (1,000,000) *
         *****************************************************
  
Fiscal Analysis
  
The bill would require the Board of Health to contract for the renovation
of existing physical facilities, including the mycobacterial-mycology
research laboratory, or contract for the construction of new physical
facilities, including the mycobacterial-mycology research laboratory,
for the Texas Center for Infectious Disease.   The Board of Health would
be allowed to contract with the board of Regents of the University of
Texas System or any other public or private health care entity to
provide tuberculosis health care services and communicable infectious
disease health care services.  The bill would require the Texas Board of
Health to contract with the board of regents of the University of Texas
System for the coordination of medical management of tuberculosis
throughout the state by the University of Texas Health Science Center at
Tyler. The bill would authorize persons whose positions are eliminated
due to program transfers and contracts required by provisions in the
bill certain enhanced retirement benefits, under certain circumstances.
  
  
Methodology
  
The Department of Health assumes that construction of new physical
facilities would be the option pursued at a cost of $25.4 million in
General Revenue, including the mycobacterial-mycology laboratory.
Continuing additional increased operating costs are assumed to total
$1,000,000 in General Revenue in fiscal year 2000 and in subsequent
fiscal years.

According to the Employees Retirement System (ERS), the bill would allow
ERS to remain actuarially sound based on the current contribution rates
for the next biennium.  Therefore, no additional state contributions for
retirement would be necessary.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   501   Department of Health
LBB Staff:         JK, TP, KF