LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 6, 2001
  
  
          TO:  Honorable Patricia Gray, Chair, House Committee on Public
               Health
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1284  by Kitchen (Relating to the Texas Healthy Kids
               Corporation.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB1284, As Introduced:  an impact of $0 through the biennium          *
*  ending August 31, 2003.                                               *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                                   $0  *
          *       2003                                    0  *
          *       2004                                    0  *
          *       2005                                    0  *
          *       2006                                    0  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***************************************************************************
*Fiscal    Probable Revenue Gain/(Loss)    Probable Revenue Gain/(Loss)   *
* Year     from Texas Healthy Kids Fund      from New General Revenue     *
*                                                   Dedicated             *
*  2002                      $(2,449,000)                      $2,449,000 *
*  2003                                 0                               0 *
*  2004                                 0                               0 *
*  2005                                 0                               0 *
*  2006                                 0                               0 *
***************************************************************************
  
Fiscal Analysis
  
The bill would repeal Chapter 109 of the Health and Safety Code (Section
7) effective September 1, 2001 (Section 10), thereby terminating the
program provided by the Texas Healthy Kids Corporation (Section 9 (a)).
The bill would direct the comptroller on the effective date to transfer
all money in the Texas Healthy Kids Fund (which is held outside of the
state treasury) to a newly-created dedicated account in the General
Revenue Fund.  Money in the General Revenue-Dedicated account could be
appropriated only to provide health care for low-income state residents
or to provide health benefits program coverage for public school district
employees.

The bill would repeal Section 171.063(h) of the Tax Code (Section 8)
effective January 1, 2002 (Section 10).  This section of the Tax Code
permits a nonprofit hospital to satisfy charity care requirements by
donating money to the Texas Healthy Kids Corporation.

The bill would delete references to the Texas Healthy Kids Corporation
found in the Health and Safety Code. The bill would also replace
references in the Family Code to "Texas Healthy Kids Corporation" and
"Chapter 109, Health and Safety Code" with "state child health plan" and
"Chapter 62, Health and Safety Code" respectively.
  
  
Methodology
  
The balance to be transferred from the Texas Healthy Kids Fund would
result in a one-time revenue gain to the state.  The Comptroller
estimates the balance will equal $2,449,000.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts, 324   Texas
                   Department of Human Services, 501   Texas Department
                   of Health, 529   Health and Human Services
                   Commission
LBB Staff:         JK, AD, HD, PP