LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION
 
May 19, 2003

TO:
Honorable Bill Ratliff, Chair, Senate Committee on State Affairs
 
FROM:
John Keel, Director, Legislative Budget Board
 
IN RE:
SB1576 by Carona (Relating to the creation of the regional workers’ compensation health care delivery networks pilot project; providing an administrative violation.), Committee Report 1st House, Substituted



Estimated Two-year Net Impact to General Revenue Related Funds for SB1576, Committee Report 1st House, Substituted: a positive impact of $2,495,076 through the biennium ending August 31, 2005.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2004 $1,247,538
2005 $1,247,538
2006 $1,247,538
2007 $0
2008 $0




Fiscal Year Probable Savings/(Cost) from
GENERAL REVENUE FUND
1 		Probable Savings/(Cost) from
New General Revenue Dedicated		 Probable Savings/(Cost) from
FEDERAL FUNDS
555 		Probable Savings/(Cost) from
New Other
2004 $1,247,538 $63,791 $282,281 $240,729
2005 $1,247,538 $63,791 $282,281 $240,729
2006 $1,247,538 $63,791 $282,281 $240,729
2007 $0 $0 $0 $0
2008 $0 $0 $0 $0

Fiscal Year Probable Savings/(Cost) from
All Local Units of Government
2004 $116,463
2005 $116,463
2006 $116,463
2007 $0
2008 $0

Fiscal Analysis

The bill amends the Labor Code to implement a health care delivery network pilot project in the Workers' Compensation Commission System.  The bill would establish a three-year pilot project for state employees in the Austin, San Antonio, and Houston area. The State Office of Risk Management, the University of Texas System, the Texas Department of Transportation, and the Texas A&M University System would participate in the pilot project.


Methodology

It is estimated that medical and indemnity savings to the state workers' compensation program would be approximately seven percent.  Applying these voluntary network savings estimates to the state workers' compensation losses in the Austin, San Antonio, and Houston areas would generate biennial savings of $3,901,604.


Local Government Impact

No significant fiscal implication to units of local government is anticipated.


Source Agencies:
453 Workers' Compensation Commission, 454 Department of Insurance, 478 Research and Oversight Council on Workers' Compensation, 479 State Office of Risk Management, 501 Department of Health, 601 Department of Transportation, 720 The University of Texas System Administration, 327 Employees Retirement System
LBB Staff:
JK, WP, RR, RT, JW, KG