LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 1, 1997
         
         
      TO: Honorable Irma Rangel, Chair            IN RE:  House Bill No. 589, Committee Report 1st House, Substituted
          Committee on Higher Education                              By: Rangel
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB589 ( Relating 
to the indemnification of certain personnel of certain institutions 
of higher education for admissions activities.) this office 
has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB589-Committee Report 1st House, Substituted
         
Implementing the provisions of the bill would result in a cost 
to general academics and medical and dental units equal to the 
amount of indemnification liability accruing under the proposed 
bill. 
         
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 indemnify a person acting 
in an official capacity on behalf of certain institutions of 
higher education for actual damages, court costs and attorney's 
fees for conduct involving a decision on admission of an individual 
to a general academic teaching institution or to a medical or 
dental unit. The bill would place indemnification for this type 
of liability under the limits established by Tex. Civ. Pract. 
& Rem. Code, Section 104.003.  The bill would set certain conditions 
under which the state would be liable for indemnification.

The 
bill would take effect immediately and would apply to any damages, 
court costs or attorney fees adjudged against a person on their 
conduct in making admissions decisions on or after the effective 
date of this act regardless of when the conduct occurred. 

Claims 
would be payable out of funds appropriated, or otherwise available, 
to the institution.  In the event that claims exceed available 
funds, the claims would be payable out of the appropriation 
in the General Appropriations Act for judgments and settlements 
of Chapter 104 claims.  The Comptroller of Public Accounts would 
reimburse the General Revenue Fund from the institution's funds 
for such amounts paid out of the General Revenue Fund to the 
extent such funds become available.

No fiscal implication 
to units of local government is anticipated.
          
   Source:            Agencies:   781   Higher Education Coordinating Board
                                         302   Office of the Attorney General
                      LBB Staff:   JK ,LP ,LD