LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  May 8, 1997
         
         
      TO: Honorable Eddie Lucio, Jr., Chair            IN RE:  House Bill No. 1585, As Engrossed
          Committee on Intergovernmental Relations                              By: Hirschi
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB1585 ( Relating 
to liability insurance for motor vehicles operated by law enforcement 
officers of a political subdivision.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by HB1585-As Engrossed
         
No fiscal implication to the State is anticipated.
         

         
 
          
This bill would require a political subdivision to insure motor 
vehicles operated by law enforcement officers against liability 
to third persons, including times that the officer is authorized 
to operate the vehicle while off-duty.

Political subdivisions 
which are not self-insured would, in most cases, probably not 
experience significant fiscal implications as a result of this 
bill's passage, since the current insurance policies of such 
entities would probably cover third person liability at all 
times.  Likewise, self-insured political subdivisions which 
currently carry auto liability policies for law enforcement 
vehicles are not expected to experience significant fiscal implications 
as a result of this bill's passage.

If this bill were enacted, 
a political subdivision which is self-insured but does not carry 
additional vehicle insurance policies could be exposed to greater 
liability, if that political subdivision does not currently 
extend liability coverage to third persons when an off-duty 
officer is operating a vehicle owned or leased by the political 
subdivision.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,TL