LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
Revision 1
May 2, 2001
TO: Honorable Kim Brimer, Chair, House Committee on Business
& Industry
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2449 by Dukes (Relating to the certification of
maximum medical improvement and the assignment of
impairment ratings in workers' compensation cases.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2449, As Introduced: negative impact of $(170,000) through the *
* biennium ending August 31, 2003. *
* *
* 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 *
* 2002 $(85,000) *
* 2003 (85,000) *
* 2004 (85,000) *
* 2005 (85,000) *
* 2006 (85,000) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2002 $(85,000) *
* 2003 (85,000) *
* 2004 (85,000) *
* 2005 (85,000) *
* 2006 (85,000) *
*****************************************************
Fiscal Analysis
The bill would allow an injured employee to contest the certification of
maximum medical improvement (MMI) or the impairment rating, or both, and
legal representation. In addition, the bill would also charge the Texas
Workers' Compensation Commission (TWCC) to reevaluate a certification of
MMI or an impairment rating made final by the TWCC on receipt of notice
from the employee that the employee has experienced a substantial change
in condition since the date of certification or impairment rating was
made final.
Methodology
According to the State Office of Risk Management (SORM), passage of the
bill would likely increase losses through increased impairment rating or
delayed MMI. SORM's estimate assumes there is no provision for the
recovery of payments made during the pendency of the prior MMI or
impairment rating.
To estimate the fiscal impact of the bill, SORM assumes that between 33
and 100 percent of the eligible injured workers will request
reconsideration for their maximum medical improvement or impairment
rating. According to SORM, the additional cost to the state could range
from $85,000-$270,000 per year. For the purpose of the fiscal note, SORM
assumes an additional cost of $85,000 per year of the biennium.
The Texas Workers' Compensation Commission assumes any additional costs
associated with the passage of the legislation could be reasonably
absorbed within current resources.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 453 Texas Workers' Compensation Commission, 479
State Office of Risk Management
LBB Staff: JK, JO, JC