LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 5, 1997
TO: Honorable Rodney Ellis, Chair IN RE: Senate Bill No. 179
Committee on Jurisprudence By: Barrientos
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB179 ( 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 SB179-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 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 and in good faith and in accordance
with a written policy of the institution or unit. Indemnification
for this type of liability is already available under Tex. Civ.
Pract. & Rem. Code 104.002 but is limited to $100,000 per
person and $300,000 per occurrence by 104.003. This new section
would pay liability which exceeded those amounts.
The legislation
also creates an "indemnity account" under the Education Code
for payment of such amounts. The account will be created by
assessing a $1 fee from every enrolled student. This account
would be considered institutional funds and would have no impact
on the General Revenue Fund or appropriations to institutions
of higher education.
This legislation is to take effect September
1, 1997 and applies 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 is
not known 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 fiscal
year 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 general revenue.
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: 720 University of Texas System Administration
302 Office of the Attorney General
781 Higher Education Coordinating Board
758 Texas State University System
304 Comptroller of Public Accounts
LBB Staff: JK ,BB ,LD ,KVO