LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 3, 1997
TO: Honorable John T. Smithee, Chair IN RE: House Bill No. 99
Committee on Insurance By: Gray
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB99 ( Relating
to the funding and operation of certain emergency management
and disaster relief programs.) this office has detemined the
following:
Biennial Net Impact to General Revenue Funds by HB99-As Introduced
Implementing the provisions of the bill would result in a net
negative impact of $(1,302,733) to General Revenue Related Funds
through the biennium ending August 31, 1999 due to a one-time
certification loss for creating a new fund.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would amend Chapter 418 of the Government Code to create
the Disaster Management Fund as a dedicated fund in the State
Treasury. The new fund would be used to provide money for emergency
management and disaster relief programs when the costs of such
exceeded the funds regularly appropriated to state and local
agencies. The definition of "disaster" would be expanded to
include "terrorist activity".
Methodolgy
The fund would consist of the revenues collected through a special
insurance policy surcharge and any additional money appropriated
to the fund. The fiscal impact of the surcharge was estimated
based on Department of Insurance data for the number of policies
in force. Money in the fund could only be used for disaster
management relief programs, the administrative expenses of the
Division of Emergency Management within the Office of the Governor
(Department of Public Safety), emergency management training
expenses incurred by state agencies or political subdivisions,
and emergency management training expenses incurred in implementation
of mutual aid assistance.
The bill would transfer the unencumbered
certification balance from General Revenue Account 0453 to the
newly created Disaster Management Fund, thereby creating a one-time
certification loss of approximately $1.3 million.
It is
estimated that the Department of Public Safety would add 22
positions to implement the statewide mutual aid responsibilities
of the bill. The fund would also be used to pay the administrative
expenses of the Division of Emergency Management, expenses related
to emergency management training for state agencies and political
subdivisions, and expenses for implementation of statewide notification
systems or services. There could be temporary staffing requirements
for the Department of Human Services related to provision of
financial aid to individuals or families qualifying for disaster
relief, but the fiscal impact would not be significant.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Probable Revenue Probable Probable Revenue Change in Number
Savings/(Cost) Gain/(Loss) from Savings/(Cost) Gain/(Loss) from of State
from Disaster New State Fund/ from New State General Revenue Employees from
Contingency Outside of Fund/ Outside of Fund FY 1997
Account/ General Revenue General Revenue
GR-Dedicated
0453 8041 8041 0001
1998 ($1,302,733) $1,302,733 ($920,686) ($1,302,733) 22.0
1998 19,346,000 (734,627) 22.0
2000 19,557,000 (734,627) 22.0
2001 19,778,000 (776,549) 22.0
2002 20,012,000 (776,549) 22.0
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 ($1,302,733)
1999 0
2000 0
2001 0
2002 0
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
Units of local government under certain conditions, would be
eligible to receive funds under the provisions of the bill.
Source: Agencies: 454 Department of Insurance
304 Comptroller of Public Accounts
405 Department of Public Safety
LBB Staff: JK ,TH ,RS ,BK