LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION May 8, 2009 TO: Honorable Robert Duncan, Chair, Senate Committee on State Affairs FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB714 by Van de Putte (Relating to regulation of the secondary market in certain physician and health care provider discounts; providing administrative penalties.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB714, As Introduced: an impact of $0 through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
May 8, 2009
TO: Honorable Robert Duncan, Chair, Senate Committee on State Affairs FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB714 by Van de Putte (Relating to regulation of the secondary market in certain physician and health care provider discounts; providing administrative penalties.), As Introduced
TO: Honorable Robert Duncan, Chair, Senate Committee on State Affairs
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: SB714 by Van de Putte (Relating to regulation of the secondary market in certain physician and health care provider discounts; providing administrative penalties.), As Introduced
Honorable Robert Duncan, Chair, Senate Committee on State Affairs
Honorable Robert Duncan, Chair, Senate Committee on State Affairs
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
SB714 by Van de Putte (Relating to regulation of the secondary market in certain physician and health care provider discounts; providing administrative penalties.), As Introduced
SB714 by Van de Putte (Relating to regulation of the secondary market in certain physician and health care provider discounts; providing administrative penalties.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB714, As Introduced: an impact of $0 through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for SB714, As Introduced: an impact of $0 through the biennium ending August 31, 2011.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2010 $0 2011 $0 2012 $0 2013 $0 2014 $0
2010 $0
2011 $0
2012 $0
2013 $0
2014 $0
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromDept Ins Operating Acct36 Probable Revenue Gain/(Loss) fromDept Ins Operating Acct36 Change in Number of State Employees from FY 2009 2010 ($229,955) $229,955 3.0 2011 ($215,956) $215,956 3.0 2012 ($215,956) $215,956 3.0 2013 ($215,956) $215,956 3.0 2014 ($215,956) $215,956 3.0
Fiscal Year Probable Savings/(Cost) fromDept Ins Operating Acct36 Probable Revenue Gain/(Loss) fromDept Ins Operating Acct36 Change in Number of State Employees from FY 2009 2010 ($229,955) $229,955 3.0 2011 ($215,956) $215,956 3.0 2012 ($215,956) $215,956 3.0 2013 ($215,956) $215,956 3.0 2014 ($215,956) $215,956 3.0
2010 ($229,955) $229,955 3.0
2011 ($215,956) $215,956 3.0
2012 ($215,956) $215,956 3.0
2013 ($215,956) $215,956 3.0
2014 ($215,956) $215,956 3.0
Fiscal Analysis
The bill would amend the Insurance Code to provide for regulation of entities acting as contracting agents in the secondary market for certain physician discounts. The bill would also require the commissioner of insurance to adopt rules as necessary. The bill would take effect September 1, 2009 and would only apply to contracts entered into or renewed on or after January 1, 2010.
The bill would amend the Insurance Code to provide for regulation of entities acting as contracting agents in the secondary market for certain physician discounts. The bill would also require the commissioner of insurance to adopt rules as necessary.
The bill would take effect September 1, 2009 and would only apply to contracts entered into or renewed on or after January 1, 2010.
Methodology
Based on analysis from TDI, it is assumed costs for implementing this bill would include salaries for an additional 3 full-time-equivalent positions (FTEs) in the amount of $163,126 each fiscal year (FY), with associated benefit costs of $46,605. The FTEs would investigate complaints and propose rules for the regulation of discount brokers. One-time equipment costs in FY 2010 would be $13,999. It is assumed other operating expenses to include telephone and consumable supplies would be $6,225 each fiscal year. Since General Revenue Dedicated Account Fund 36 is a self-leveling account, this analysis assumes the costs to implement this bill would come from fund balances or the maintenance tax would be set to recover a higher level of revenue.
Based on analysis from TDI, it is assumed costs for implementing this bill would include salaries for an additional 3 full-time-equivalent positions (FTEs) in the amount of $163,126 each fiscal year (FY), with associated benefit costs of $46,605. The FTEs would investigate complaints and propose rules for the regulation of discount brokers. One-time equipment costs in FY 2010 would be $13,999. It is assumed other operating expenses to include telephone and consumable supplies would be $6,225 each fiscal year.
Since General Revenue Dedicated Account Fund 36 is a self-leveling account, this analysis assumes the costs to implement this bill would come from fund balances or the maintenance tax would be set to recover a higher level of revenue.
Technology
There would be a one-time technology impact of $4,332 in fiscal year 2010 for computer hardware and software at TDI.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 454 Department of Insurance
454 Department of Insurance
LBB Staff: JOB, KJG, MW, CH
JOB, KJG, MW, CH