LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 9, 1997
TO: Honorable John T. Smithee, Chair IN RE: House Bill No. 531
Committee on Insurance By: Shields
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB531 ( Relating
to expunction of certain records of the Texas Department of
Insurance.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB531-As Introduced
Implementing the provisions of the bill would result in a net
impact of $0 to General Revenue Related Funds through the biennium
ending August 31, 1999.
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
This bill would amend Chapter 1 of the Texas Insurance Code.
The bill allows persons who have been found to have violated
the Insurance Code, agency rules or other laws relating to insurance
to seek expunction of Texas Department of Insurance (TDI) Records
if certain criteria is met.
Methodolgy
Costs are estimated on the number of prior enforcement actions
and projected future cases where expunction is anticipated to
be requested, current historical number of hearings requested
by companies and agents, and the current average hourly cost
for a hearing. The revenue gain estimate is based on the assumption
that the fee collected will offset the cost of implementation.
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 Change in Number
Savings/(Cost) Gain/(Loss) from of State
from Texas Texas Department Employees from
Department of of Insurance FY 1997
Insurance Operating
Operating Account/
Account/ GR-Dedicated
GR-Dedicated
0036 0036
1998 ($81,341) $81,341 1.5
1998 (66,237) 66,237 1.5
2000 (66,237) 66,237 1.5
2001 (66,237) 66,237 1.5
2002 (66,237) 66,237 1.5
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 $0
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.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 454 Department of Insurance
LBB Staff: JK ,TH