LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 1, 1997 TO: Honorable Ron E. Lewis, Chair IN RE: House Bill No. 1585 Committee on County Affairs By: Hrischi House 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 Introduced 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, since the current insurance policies of such entities would probably cover third person liability at all times. There could be some cost increases to such political subdivisions associated with raising the maximum liability coverage amounts to those specified in Section 101.023, Civil Practice and Remedies Code. 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, but might see some cost increases associated with raising maximum liability levels. Political subdivisions which are self-insured but carry no additional vehicle insurance policies could experience significant negative fiscal implications as a result of this bill's passage, since the bill requires that third party insurance comply with Subchapter D, Transportation Code, which does provide exceptions for self-insured political subdivisions. For example, Harris County estimates that this bill's enactment would cost the county at least an additional $1.5 million per year, based on approximately 1,000 law enforcement vehicles and annual insurance costs of $1,500 per vehicle. Other self-insured local governments which currently do not provide vehicle liability insurance policies would be expected to experience similar cost increases per vehicle owned or leased. Source: Agencies: 304 Comptroller of Public Accounts LBB Staff: JK ,TL