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 ************************************************************************** * 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: ************************************************************************** *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