LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION
 
May 11, 2007

TO:
Honorable Rodney Ellis, Chair, Senate Committee on Government Organization
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB1297 by Delisi (Relating to the creation of the state employee wellness program.), As Engrossed



Estimated Two-year Net Impact to General Revenue Related Funds for HB1297, As Engrossed: a negative impact of ($420,030) through the biennium ending August 31, 2009.

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
2008 ($196,361)
2009 ($223,669)
2010 ($223,669)
2011 ($223,669)
2012 ($223,669)




Fiscal Year Probable Savings/(Cost) from
GENERAL REVENUE FUND
1 		Change in Number of State Employees from FY 2007
2008 ($196,361) 2.0
2009 ($223,669) 2.0
2010 ($223,669) 2.0
2011 ($223,669) 2.0
2012 ($223,669) 2.0

Fiscal Analysis

The bill amends Government Code Chapter 664 to expand the state employee wellness program and create a statewide wellness coordinator at the Department of State Health Services (DSHS) to develop the program.  The Commissioner would have the authority to adopt rules to implement the program.  The program may include health education, a health risk survey, resources to improve the health and wellness of state employees, and employment practices that support the wellness program. The wellness coordinator may establish incentives to encourage participation in the program.

The bill requires the wellness coordinator to coordinate with the Employees Retirement System to develop a wellness program and make use of wellness services available through the employee health benefit program.

The bill would require each state agency to designate a wellness liaison.  The wellness coordinator may assist a state agency to establish an employee wellness demonstration project.  The wellness demonstration project may implement strategies developed by the wellness coordinator.
 
The bill would take effect on September 1, 2007.


Methodology

The Department of State Health Services estimates it would require two additional FTEs to develop the state employee wellness program described in the bill. The $196,361 in 2008 and $223,696 in 2009 would fund the administrative costs related to these positions.

If the demonstration project were designed to be a comprehensive program aimed at reducing direct and indirect costs associated with preventable disease, the pilot would cost $3 per employee per month. Because it is unknown how the pilot would be structured or how many emloyees would take part in the pilot, no cost associated with the pilot is reflected in the fiscal impact. 


Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
537 State Health Services, Department of
LBB Staff:
JOB, MN, CL, JI, DH