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