LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 23, 2001
  
  
          TO:  Honorable John T. Smithee, Chair, House Committee on
               Insurance
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2785  by Farabee (Relating to allowing community mental
               health and mental retardation authorities to participate
               in the small employer market for health insurance.), As
               Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would amend Subchapter A, Chapter 26 of the Insurance Code by
adding Article 26.037 which allows community mental health and mental
retardation centers to participate in the small employer market without
regard to the number of eligible employees in the center.  It would mean
that the community center would be treated as a small employer under all
chapters of this part of the code.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   655   TX Dept. of Mental Health & Mental Retardation,
                   454   Texas Department of Insurance
LBB Staff:         JK, JO, MB, DW