LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              March 22, 1999
  
  
          TO:  Honorable John Smithee, Chair, House Committee on
               Insurance
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1919  by Gallego (Relating to a review of and
               moratorium on requirements that health care benefits be
               provided under certain health benefit plans.), As
               Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB1919, As Introduced:  impact of $0 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.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2000                                   $0  *
          *       2001                                    0  *
          *       2002                                    0  *
          *       2003                                    0  *
          *       2004                                    0  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
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*Fiscal    Probable Savings/(Cost) from     Change in Number of State     *
* Year    Texas Department of Insurance       Employees from FY 1999      *
*        Operating Account/ GR-Dedicated                                  *
*                      0036                                               *
*  2000                        $(132,296)                             2.0 *
*  2001                         (120,866)                             2.0 *
*  2002                          (83,644)                             1.3 *
*  2003                          (64,469)                             1.3 *
*  2004                          (64,469)                             1.3 *
***************************************************************************
  
Fiscal Analysis
  
The bill would require the Texas Health Care Information Council (HCIC),
on request of the Governor, the Lieutenant Governor, the Speaker of the
House of Representatives, a legislative research organization, or the
Legislative Budget Board, to provide a written analysis of any proposed
health care benefit mandate, including an evaluation of ten specified
criteria.

The bill would also create a Health Care Benefit Mandate Review Board
(the Board), an advisory committee composed of the Commissioner of
insurance (or his designee) and six other individuals appointed by the
Governor.  The Board would be allowed to employ staff and enter into
contracts with public and private entities for the collection and
analysis of data.  The Board would be required to review existing health
care benefit mandates and submit a written report with recommendations
to the Governor, the Lieutenant Governor, and the Speaker of the House
of Representatives no later than January 1, 2001.  The Board would be
established effective September 1, 1999, and would be abolished on
December 31, 2001.
  
  
Methodology
  
TDI estimates a need for two additional FTEs and associated operating
costs in 2000 and 2001, and 1.34 additional FTEs from 2002 through 2004
to review and analyze the impact of mandated benefits.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   
LBB Staff:         JK, TH, RT, DP