LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION May 26, 2009 TO: Honorable David Dewhurst , Lieutenant Governor, Senate Honorable Joe Straus, Speaker of the House, House of Representatives FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB2423 by Deuell (Relating to the transfer or sale of patient information or prescription drug history by discount health care programs; providing penalties. ), Conference Committee Report No significant fiscal implication to the State is anticipated. The bill would amend the Health and Safety Code by expanding the definitions of a discount health care program and a discount care health care program operator. Enactment of certain provisions of the bill would be contingent on other legislation passing, transfering regulation of the discount health care program to the Texas Department of Insurance (TDI) from the Texas Department of Licensing and Regulation (TDLR). Based on the analysis of the Texas Department of Licensing and Regulation, it is assumed that if the program is not transfered, there would be a small annual revenue gain because the bill would result in additional registrations from certain discount health care card operators. Since the agency is required to cover its cost of operation, this analysis assumes that any increase in revenue will be offset by the agency readjusting fees. It is also assumed that any costs realized by TDLR from implementing the provisions of the bill could be absorbed within existing resources. If the regulation of the discount health care program is transfered to TDI, there would be a small annual revenue gain to General Revenue - Insurance Maintenance Tax. Since insurance maintenance tax is self-leveling, this analysis assumes all revenue generated would go toward fund balances or the maintenance tax would be set to recover a lower level of revenue the following year. It is also assumed that any costs realized by TDI from implementing the provisions of the bill could be absorbed within existing resources. Based on analysis provided by the Texas Department of Insurance, the bill will have no fiscal impact on the agency. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:452 Department of Licensing and Regulation, 454 Department of Insurance LBB Staff: JOB, CH, CL, MW LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION May 26, 2009 TO: Honorable David Dewhurst , Lieutenant Governor, Senate Honorable Joe Straus, Speaker of the House, House of Representatives FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB2423 by Deuell (Relating to the transfer or sale of patient information or prescription drug history by discount health care programs; providing penalties. ), Conference Committee Report TO: Honorable David Dewhurst , Lieutenant Governor, Senate Honorable Joe Straus, Speaker of the House, House of Representatives FROM: John S. O'Brien, Director, Legislative Budget Board IN RE: SB2423 by Deuell (Relating to the transfer or sale of patient information or prescription drug history by discount health care programs; providing penalties. ), Conference Committee Report Honorable David Dewhurst , Lieutenant Governor, Senate Honorable Joe Straus, Speaker of the House, House of Representatives Honorable David Dewhurst , Lieutenant Governor, Senate Honorable Joe Straus, Speaker of the House, House of Representatives John S. O'Brien, Director, Legislative Budget Board John S. O'Brien, Director, Legislative Budget Board SB2423 by Deuell (Relating to the transfer or sale of patient information or prescription drug history by discount health care programs; providing penalties. ), Conference Committee Report SB2423 by Deuell (Relating to the transfer or sale of patient information or prescription drug history by discount health care programs; providing penalties. ), Conference Committee Report No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would amend the Health and Safety Code by expanding the definitions of a discount health care program and a discount care health care program operator. Enactment of certain provisions of the bill would be contingent on other legislation passing, transfering regulation of the discount health care program to the Texas Department of Insurance (TDI) from the Texas Department of Licensing and Regulation (TDLR). Based on the analysis of the Texas Department of Licensing and Regulation, it is assumed that if the program is not transfered, there would be a small annual revenue gain because the bill would result in additional registrations from certain discount health care card operators. Since the agency is required to cover its cost of operation, this analysis assumes that any increase in revenue will be offset by the agency readjusting fees. It is also assumed that any costs realized by TDLR from implementing the provisions of the bill could be absorbed within existing resources. If the regulation of the discount health care program is transfered to TDI, there would be a small annual revenue gain to General Revenue - Insurance Maintenance Tax. Since insurance maintenance tax is self-leveling, this analysis assumes all revenue generated would go toward fund balances or the maintenance tax would be set to recover a lower level of revenue the following year. It is also assumed that any costs realized by TDI from implementing the provisions of the bill could be absorbed within existing resources. Based on analysis provided by the Texas Department of Insurance, the bill will have no fiscal impact on the agency. The bill would amend the Health and Safety Code by expanding the definitions of a discount health care program and a discount care health care program operator. Enactment of certain provisions of the bill would be contingent on other legislation passing, transfering regulation of the discount health care program to the Texas Department of Insurance (TDI) from the Texas Department of Licensing and Regulation (TDLR). Based on the analysis of the Texas Department of Licensing and Regulation, it is assumed that if the program is not transfered, there would be a small annual revenue gain because the bill would result in additional registrations from certain discount health care card operators. Since the agency is required to cover its cost of operation, this analysis assumes that any increase in revenue will be offset by the agency readjusting fees. It is also assumed that any costs realized by TDLR from implementing the provisions of the bill could be absorbed within existing resources. If the regulation of the discount health care program is transfered to TDI, there would be a small annual revenue gain to General Revenue - Insurance Maintenance Tax. Since insurance maintenance tax is self-leveling, this analysis assumes all revenue generated would go toward fund balances or the maintenance tax would be set to recover a lower level of revenue the following year. It is also assumed that any costs realized by TDI from implementing the provisions of the bill could be absorbed within existing resources. Based on analysis provided by the Texas Department of Insurance, the bill will have no fiscal impact on the agency. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 452 Department of Licensing and Regulation, 454 Department of Insurance 452 Department of Licensing and Regulation, 454 Department of Insurance LBB Staff: JOB, CH, CL, MW JOB, CH, CL, MW