NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

Taxation and Revenue Department (TRD)

SUMMARY

     Synopsis of the HJC Amendment

In section five, which specifies responsibilities of CYFD, the phrase "to determine if the infant has been abused or neglected" was deleted. Determining if abuse or neglect has occurred is a requirement of the act Abuse and Neglect Act.

Synopsis of Original Bill

This bill amends a section of the gross receipts and compensating tax act to provide for a deduction of gross receipts from payments by third party administrators of the federal TRICARE program (10 U.S.C. 1072 (7)). TRICARE is a managed care health insurance similar to the state's SALUD program for Medicaid recipients, or various managed care private insurance programs. Three types of Tricare are available to active duty military, military retirees and their families. Roughly 3.9% of the state's population is covered by TRICARE.

FISCAL IMPLICATIONS

The Taxation and Revenue Department estimates that this bill's full year impact will reduce general fund revenue by $265.0 and local government revenues by $210.0. TRD adds that if more practitioners such as nurses, dentists, podiatrists and other licensed health care practitioners participate in TRICARE the bill would increase the general fund and local government impact by about 74%.

OTHER SUBSTANTIVE ISSUES

The following table of costs was provided by TRD.

JBE/ar/njw