LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 15, 2001 TO: Honorable Bill Ratliff, Lieutenant Governor, Senate FROM: John Keel, Director, Legislative Budget Board IN RE: SB236 by Harris (relating to court-ordered medical support for certain children.), As Passed 2nd House ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB236, As Passed 2nd House: positive impact of $0 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 $0 * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) from * * New General Revenue Dedicated- * * Texas Healthy Kids * * 2002 $5,600,000 * * 2003 2,000,000 * * 2004 2,000,000 * * 2005 0 * * 2006 0 * ***************************************************** Fiscal Analysis The bill would amend Chapter 154 Family Code, relating to the issuance of medical support orders. The bill would limit the provision of insurance by a parent to insurance that is available at a "reasonable cost," defined as up to 10 percent of the responsible parent's net income in a month. The bill would remove the option of insuring a child through the Texas Healthy Kids Corporation. The bill would require the Texas Department of Insurance to monitor the implementation of the dissolution of the corporation. The bill would require the Comptroller to transfer all money in the Texas Healthy Kids Fund, other than the amount required to satisfy its obligations incurred before June 15, 2001, to a new, dedicated account in the General Revenue Fund. The bill would require the Commissioner of Insurance and the board of directors of the Texas Healthy Kids Corporation to determine the amount of money necessary to satisfy the corporation's obligations. Once those obligations were satisfied, all the remaining funds, including any funds received in the settlement of litigation, would have to be deposited in the new account. The bill would allow the new account to be appropriated only to the Texas Health and Human Services Commission to provide coverage under the state child health plan. The bill would require the Texas Health and Human Services Commission and the Attorney General to request any federal waiver or authorization necessary related to the provision of medical assistance and to develop and publish necessary rules. The bill would take effect immediately upon enactment if it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2001. Methodology The bill would create a new, dedicated account within General Revenue Fund, and it would transfer money from the Texas Healthy Kids Fund to the account. The bill would require that the transfer of the unobligated balance take place August 31, 2001. The bill would require the Commissioner of Insurance to determine when all the corporation's obligations were satisfied. At that time, any remaining balance, including any amounts from the settlement of litigation, would be transferred to the new account. According to the Comptroller's Office, under a current settlement, two payments of $2 million each would be received on December 31, 2001 and December 31, 2002. This estimate assumes that the corporation's obligations would be satisfied before December 31, 2001 and the settlement payments would be made directly into the new account. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 454 Texas Department of Insurance, 529 Health and Human Services Commission, 304 Comptroller of Public Accounts LBB Staff: JK, JC, RT, DE, AJ