C.S.H.B. 3378 78(R) BILL ANALYSIS C.S.H.B. 3378 By: Hope Appropriations Committee Report (Substituted) BACKGROUND AND PURPOSE Due to the current budget shortfall, state agencies and institutions of higher education were asked to prioritize spending based on core functions and essential services. The committee looked to these priorities in preparation of the budget; however, certain statutory changes are also needed to conform with appropriations levels in the 2004-05 General Appropriations Act. Committee Substitute House Bill 3378 authorizes these statutory changes for the regulatory agencies listed under Article VIII of the 2004-05 General Appropriations Act. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS Committee Substitute House Bill 3378 authorizes the legislature to reduce statutory amounts going to Article VIII state agencies if necessary to balance the budget. Committee Substitute House Bill 3378 amends the Labor Code by classifying the subsequent injury fund as a dedicated general revenue account. Committee Substitute House Bill 3378 removes certain provisions regarding the system benefit fund from the Utilities Code. Committee Substitute House Bill 3378 amends the Finance Code by making the financing and assignment of the financial services study permissive rather than mandatory. EFFECTIVE DATE Upon passage, or, if the Act does not receive the necessary vote, the Act takes effect September 1, 2003. COMPARISON OF ORIGINAL TO SUBSTITUTE Committee Substitute House Bill 3378 modifies the original by adding language that amends the Labor Code by classifying the subsequent injury fund as a dedicated general revenue account. Committee Substitute House Bill 3378 modifies the original by adding language that removes certain provisions regarding the system benefit fund from the Utilities Code. Committee Substitute House Bill 3378 modifies the original by adding language that amends the Finance Code by making the financing and assignment of the financial services study permissive rather than mandatory. Committee Substitute House Bill 3378 modifies the original by removing language that directs the State Office of Administrative Hearings to reduce expenditures by eliminating the billing rate charged to referring agencies to cover excess workload expenses. Committee Substitute House Bill 3378 modifies the original by removing language that directs the Texas Department of Insurance to reduce expenditures by eliminating the amount paid by the state to the National Association of Insurance Commission for the information required to be submitted to that association. Committee Substitute House Bill 3378 modifies the original by removing language that directs the Texas State Board of Medical Examiners to reduce expenditures by eliminating the physician assistant loan reimbursement program, the duty to preform certain internal audits, and the newsletter, and to provide the information from the newsletter on the Internet. Committee Substitute House Bill 3378 modifies the original by removing language that directs the Texas Racing Commission to reduce expenditures by allocating the Texas-bred program funds to the state horse breed registries and funds for the Texas-bred greyhound races to the state greyhound breed registry. Committee Substitute House Bill 3378 modifies the original by removing language that directs the Texas Workers' Compensation Commission to reduce expenditures by (1) requiring a nonprevailing party in a medical dispute resolution to pay the costs of the resolution, (2) performing audits of certain insurance carriers at the commission's offices rather than the carrier's offices, and (3) requiring health care providers and insurance carriers to pay reasonable costs for subsequent audits or reviews, if an audit or review reveals a violation of a Labor Code provision or commission rule.