LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
April 11, 1995
TO: Honorable David Sibley, Chair IN RE: Senate Bill No.
Committee on Economic Development 1232,
Senate as amended
Austin, Texas By: Armbrister
FROM: John Keel, Director
In response to your request for a Fiscal Note on Senate Bill No.
1232 (relating to a motor vehicle self-insurance program for
volunteer fire departments) this office has determined the
following:
The bill would establish a liability insurance pool administered
by the Texas Forest Service, as well as create an account in the
General Revenue Fund. The bill would require any start-up
appropriation to be refunded to the General Revenue Fund by
September 1, 1998. Actual appropriation amounts or the self-
insurance fees necessary to refund those amounts cannot be
determined.
It is estimated that claims to the pool would be approximately
$1,132,000 per year. Self-insurance fees would be set in an
amount sufficient to cover claims, administrative costs, and
repayment of any initial appropriation. Revenue from these fees
cannot be determined.
The probable savings to volunteer fire departments throughout the
state would be 50-75% of the current premiums they pay for
vehicle liability insurance.
The probable fiscal implication of implementing the provisions of
the bill during each of the first five years following passage
is estimated as follows:
Fiscal Probable Change in
Year Administrative Number of State
Cost Out of Employees from
General Revenue FY 1995
Fund 001
1996 $368,000 5.0
1997 368,000 5.0
1998 368,000 5.0
1999 368,000 5.0
2000 368,000 5.0
Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
Source: Comptroller of Public Accounts, Texas Forest Service
LBB Staff: JK, LA, RR