| TO: | Honorable Helen Giddings, Chair, House Committee on Business & Industry |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB2166 by Bailey (Relating to creation and operation of a pilot program for certain voluntary alternative agreements regarding compensable injuries.), As Introduced |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2008 | $0 |
| 2009 | $0 |
| 2010 | $0 |
| 2011 | $0 |
| 2012 | $0 |
| Fiscal Year | Probable (Cost) from DEPT INS OPERATING ACCT 36 |
Probable Revenue Gain from DEPT INS OPERATING ACCT 36 |
Change in Number of State Employees from FY 2007 |
|---|---|---|---|
| 2008 | ($246,050) | $246,050 | 3.0 |
| 2009 | ($204,226) | $204,226 | 3.0 |
| 2010 | ($206,326) | $206,326 | 3.0 |
| 2011 | ($206,091) | $206,091 | 3.0 |
| 2012 | ($205,926) | $205,926 | 3.0 |
The bill would amend the Labor Code to establish a pilot program for certain voluntary alternative agreements for workers' compensation. The bill would provide that certain labor unions would be able to enter into voluntary agreements with certain employers to set up alternative dispute resolution, health care delivery, case management, return-to-work and rehabilitation provisions apart from those in the current Workers' Compensation Act and under the jurisdiction of the Division of Workers' Compensation (DWC) at the Texas Department of Insurance (TDI). The bill would require these voluntary agreements to be filed with TDI, and the provisions of the agreement would be binding on the parties. The commissioner would be required to collect data from the parties and issue an annual report on the pilot program. The pilot program would expire September 1, 2017.
The bill would take effect immediately upon a two-thirds vote in each house, otherwise the bill would take effect September 1, 2007.
Based on the analysis of the TDI, it is assumed there would be costs associated with establishing this pilot program. Costs would include salaries for 3.0 FTEs, two Program Specialist VI and one Research Specialist V, in the amount of $147,672 each fiscal year with associated benefit costs of $41,776 each fiscal year. It is assumed an information technology application would need to be developed to allow for electronic filing of information by the parties. Costs for this application would include development costs of $30,000 in fiscal year 2008 and data storage costs of $2,300 in fiscal year 2008, $4,300 in fiscal year 2009, $6,400 in fiscal year 2010, $6,165 in fiscal year 2011, and $6,000 in fiscal year 2012. Other costs and operating expenses, including travel, training, and telephone costs are assumed to be $10,478 each fiscal year. It is assumed there would be a one-time cost in fiscal year 2008 for equipment in the amount of $13,824.
Since TDI is required to generate revenues equivalent to its costs of operation under current law, this analysis assumes that all costs incurred in excess of revenues generated would be paid for from General Revenue - Dedicated Fund 36 from either existing fund balances or insurance maintenance tax revenues.
| Source Agencies: | 454 Department of Insurance
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| LBB Staff: | JOB, JRO, MW, SK
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