LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          March 26, 1995



 TO:     Honorable Allen Place, Chair           IN RE:  House Bill No. 1487
         Committee on Criminal Jurisprudence            By: Counts
         House of Representatives
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
1487 (relating to provisions governing insurance fraud, creating
a penal offense; and making an appropriation) this office has
determined the following:

The bill would amend the Penal Code to create specific penalties
for filing fraudulent statements in support of insurance claims,
authorize the Attorney General to prosecute cases at the request
of the District Attorney or County Attorney, and establish the
order for distribution of assets forfeited.

The bill would re-establish the misdemeanor and felony crimes of
insurance fraud, which existed under the old Penal Code.  The
bill would confer authority to the attorney general to prosecute
at the request of the local prosecutor and would permit statewide
equal enforcement capability. 

The bill would make an appropriation to the Attorney General of
all fees, costs and civil penalties assessed under the new
provisions of the Penal Code.  The amount of the appropriation
cannot be determined because neither the number of successful
insurance fraud prosecutions nor the associated costs, fees or
penalty assessments can be estimated.

The bill would re-establish the Attorney General Law Enforcement
Account and dedicate a revenue source in the State Treasury.


The fiscal implication to the State or units of local government
cannot be determined.    




 
Source:   Office of the Attorney General, Comptroller of Public
Accounts,
                          Department of Insurance
          LBB Staff: JK, RM, RR