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