LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 17, 1997
TO: Honorable Irma Rangel, Chair IN RE: House Bill No. 589
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 employees of certain institutions
of higher education for admissions activities.) this office
has detemined the following:
Biennial Net Impact to General Revenue Funds by HB589-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.
The bill would indemnify certain employees of
certain institutions of higher education for actual damages,
court costs and attorney's fees for conduct involving their
decision on admission of an individual to a general academic
teaching institution or to a medical or dental unit. The state
would be liable only if the employee acted in the course and
scope of the employee's job, in good faith, and in accordance
with a written policy of the institution or unit.
The legislation
would also create a General Revenue Dedicated "indemnity account"
under the Education Code for payment of such amounts. The account
would be created by assessing a $1 fee from every enrolled student.
This account would have no impact on appropriations to institutions
of higher education.
This legislation would take effect September
1, 1997 and apply only to actions filed with a court on or after
that date.
Fiscal Analysis
Indemnification for this type
of liability is already available under Tex. Civ. Pract. & Rem.
Code, Section 104.002 but is limited to $100,000 per person
and $300,000 per occurrence by Section 104.003. The new section
does not contain dollar amount limitations on state liability.
It cannot be determined whether a court would apply the dollar
amount limitations currently in Section 104.003 to the indemnification
which would be provided by this bill.
Methodology
The
proposed $1 fee is multiplied by the estimated enrollment to
calculate the gain to the indemnity account. The estimated
gain to the indemnity account is $811,000 in 1998, increasing
to $840,000 in 2002.
Funds in the account would be used to
pay claims under this bill. In the event that claims exceed
the balances of the account, 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.
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: 781 Higher Education Coordinating Board
302 Office of the Attorney General
304 Comptroller of Public Accounts
720 University of Texas System Administration
758 Texas State University System
LBB Staff: JK ,LP ,LD ,KVO