LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              March 16, 1999
  
  
          TO:  Honorable Kim Brimer, Chair, House Committee on Business
               & Industry
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2511  by Giddings (Relating to workers' compensation
               coverage reporting requirements, authority to prescribe
               information transmission and electronic data exchange
               methods; required planning), As Introduced
  
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*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB2511, As Introduced:  positive 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         Probable Revenue    Change in Number of  *
* Year    Savings/(Cost) from   Gain/(Loss) from   State Employees from  *
*        General Revenue Fund General Revenue Fund        FY 1999        *
*                0001                 0001                               *
*  2000           $(1,293,207)           $1,293,207                  7.0 *
*  2001              (803,235)              803,235                  7.0 *
*  2002            (1,480,830)            1,480,830                  7.0 *
*  2003              (680,830)              680,830                  7.0 *
*  2004               (80,830)               80,830                  7.0 *
**************************************************************************
  
Fiscal Analysis
  
The bill would allow the Texas Workers' Compensation Commission (TWCC) to
require the use of electronic transmission of documents between parties
in the workers' compensation system.  The bill would also require TWCC
to identify a task force, hold public hearings, and conduct studies
necessary to develop a comprehensive information exchange plan for the
conversion of workers' compensation information to electronic exchange.
The bill would require that the plan be designed to reduce paper
communications by 30 percent by 2002, and by another 30 percent by 2003.
The bill would require that the plan be published by July 1, 2000.
  
  
Methodology
  
This estimate assumes that TWCC would incur some cost to organize a task
force, conduct studies, and seek outside assistance to develop a
comprehensive electronic information exchange.  In addition, it is
estimated that TWCC would need to purchase additional hardware and
software for the electronic transmission and storage of documents.
However, it is also assumed that TWCC would experience some savings
through the reduction of hard-copy file maintenance and storage.

It is assumed that all costs incurred by TWCC would be offset by an
equivalent revenue increase in the workers' compensation maintenance tax.

Any changes in electronic filing requirements could affect the State
Office of Risk Management, as the state agency responsible for
administering workers' compensation payments.  However, this estimate
assumes that any new requirements could be met with existing agency
resources.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   
LBB Staff:         JK, TH, CB