LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 23, 1997
TO: Honorable James E. "Pete" Laney IN RE: House Bill No. 3522, As Passed 2nd House
Speaker of the House Rhodes
House of Representatives
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB3522 ( relating
to the administration and enforcement of the workers' compensation
law; providing penalties.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB3522-As Passed 2nd House
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.
Fiscal Analysis
The bill would amend Section 403.002(a) of the Labor Code to
require the maintenance tax assessed on workers' compensation
premiums to support the prosecution of workers' compensation
insurance fraud. Also, the bill would amend Section 407.103(a)
of the Labor Code to require the self insurer maintenance tax
to support the prosecution of workers' compensation insurance
fraud.
The Texas Workers' Compensation Commission (TWCC)
would enter into contracts with District Attorney's (D.A.) offices
to prosecute workers' compensation insurance fraud. The costs
of these contracts would be offset by increased maintenance
tax collections, as allowed by Sections 403.002(a) and 407.103(a).
It is estimated that the cost of these contracts would be $83,294
in FY 1998, $140,281 in FYs 1999 through 2002.
Methodolgy
Contract costs were based on the following assumptions:
(1)
In FY 1998, approximately 45 complaints would be referred to
D.A. offices. After implementation of the program the number
of complaints referred to D.A. offices would increase; therefore,
program costs would increase after FY 1998.
(2) The equivalent
of one prosecutor would be needed in FY 1998; the equivalent
of two prosecutors would be needed in FYs 1999 through 2002;
and,
(3) The equivalent of one administrative technician
would be needed each fiscal year.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Probable Revenue
Savings/(Cost) Gain/(Loss) from
from General General Revenue
Revenue Fund Fund
0001 0001
1998 ($83,294) $83,294
1998 (140,281) 140,281
2000 (140,281) 140,281
2001 (140,281) 140,281
2002 (140,281) 140,281
Net Impact on General Revenue Related Funds:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $0
1999 0
2000 0
2001 0
2002 0
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: 453 Workers' Compensation Commission
LBB Staff: JK ,TH ,BK