LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION
 
April 1, 2003

TO:
Honorable Jaime Capelo, Chair, House Committee on Public Health
 
FROM:
John Keel, Director, Legislative Budget Board
 
IN RE:
HB1919 by Capelo (Relating to use of money received under the state tobacco settlement for the state child health plan.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB1919, As Introduced: a negative impact of ($995,646,000) through the biennium ending August 31, 2005.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2004 ($499,993,000)
2005 ($495,653,000)
2006 ($497,365,000)
2007 ($500,620,000)
2008 ($505,390,000)




Fiscal Year Probable Revenue Gain/(Loss) from
GENERAL REVENUE FUND
1 		Probable Revenue Gain/(Loss) from
New General Revenue Dedicated
2004 ($499,993,000) $499,993,000
2005 ($495,653,000) $495,653,000
2006 ($497,365,000) $497,365,000
2007 ($500,620,000) $500,620,000
2008 ($505,390,000) $505,390,000

Fiscal Analysis

The bill would amend Chapter 62 of the Health and Safety Code and establish a new GR-Dedicated Account, the Child Health Plan account. The new account would consist of money transferred by the Legislature, grants and gifts, and the state's annual payments from the tobacco companies under the tobacco settlement agreement. Money in the account could be appropriated only to fund the costs of the Child Health Plan.

The bill would take effect immediately upon enactment, if it receives the requisite two-thirds majority vote in both houses of the Legislature. Otherwise, it would take effect September 1, 2003.


Methodology

The fiscal impact estimate reflects only the provision that would transfer the annual tobacco settlement payments from Fund 001 to the new Child Health Plan account. The potential legislative transfers and gifts and grants cannot be estimated.

Implementation of the bill would do one or more of the following: 1) create or recreate a dedicated account in the General Revenue Fund, 2) create or recreate a special or trust fund either within or outside of the Treasury, 3) or create a dedicated revenue source.

Legislative policy, as implemented by the Government Code 403.094, consolidated special funds (except those affected by constitutional, federal, or other restrictions) into the General Revenue Fund as of August 31, 1993 and eliminated all applicable statutory revenue dedications as of August 31,1995. Each subsequent Legislature has reviewed bills that affect funds consolidation. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.


Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
304 Comptroller of Public Accounts, 529 Health and Human Services Commission
LBB Staff:
JK, JO, EB, KF, LW