LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 12, 1999
TO: Honorable Kim Brimer, Chair, House Committee on Business
& Industry
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB3697 by Siebert (Relating to the operation of the
Texas Workers' Compensation Insurance Fund.), As
Introduced
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3697, As Introduced: positive impact of $400,000,000 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. *
**************************************************************************
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $400,000,000 *
* 2001 0 *
* 2002 0 *
* 2003 0 *
* 2004 0 *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* General Revenue Fund *
* 0001 *
* 2000 $400,000,000 *
* 2001 0 *
* 2002 0 *
* 2003 0 *
* 2004 0 *
*****************************************************
Fiscal Analysis
The bill would amend Article 5.76-3, Section 2(a) of the Insurance Code
defining the purpose of the Texas Workers' Compensation Fund, held
outside the State Treasury, to serve as a stabilizing force in the
marketplace. The bill would also amend Article 5.76-3, Section 13(c) of
the Insurance Code authorizing a transfer to the General Revenue Fund
from unassigned surplus of the Workers' Compensation Fund. Any transfer
to the General Revenue Fund would be contingent upon approval by the
Commissioner of Insurance that such a transfer would not adversely affect
the financial ability of the fund to perform its responsibilities. Any
funds transferred to the General Revenue Fund could not be appropriated
for a particular agency or purpose.
The bill would take effect immediately upon passage, and would require
the Commissioner of Insurance to provide a report within ten days, but
no later than May 3, 1999, to the Governor, the Comptroller of Public
Accounts, and the Legislative Budget Board of the amount of unassigned
surplus funds available for transfer to the General Revenue Fund during
the fiscal year 2000-01 biennium.
Methodology
The Texas Department of Insurance (TDI) estimates $400,000,000 of
unassigned surplus funds would be available for transfer from the
Workers' Compensation Fund to the General Revenue Fund in fiscal year
2000. This is based on a reported statutory net worth for the Fund of
$831,000,000 as of December 31, 1998.
TDI does not project additional transfers from the Fund's remaining
$431,000,000 during fiscal years 2001 through 2004.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK, TH, RT, DP