LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 10, 1997
         
         
      TO: Honorable Patricia Gray, Chair            IN RE:  House Bill No. 494
          Committee on Civil Practices                              By: Alvarado
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB494 ( Relating 
to false claims made with certain governmental entities.) this 
office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB494-As Introduced
         
This bill would amend the Government Code by adding Chapter 
2259 which would authorize the Attorney General to sue persons 
who file false claims with a governmental entity or government 
contractor, and to recover damages.  The Office of the Attorney 
General anticipates that the bill could increase its workload 
from the requirement that investigations of alleged violations 
of Chapter 2258 be made, and from increased litigation.  For 
purposes of this fiscal note, it is assumed that the Attorney 
General should be able to undertake any new responsibilities 
using current resources, so that no significant fiscal implication 
to the State is anticipated.
         

         
 
          
Local governments would have the same responsibility as the 
Office of the Attorney General to investigate and file lawsuits 
on false claims.  The bill would have an impact on local governments 
to the extent that it would add new mandatory responsibilities 
not currently undertaken by local governments.  It is possible 
that local governments would have some monetary exposure with 
regard to the whistle blower section of the bill.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         302   Office of the Attorney General
                                         
                      LBB Staff:   JK ,PE ,JC