LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
February 26, 2001
TO: Honorable Kim Brimer, Chair, House Committee on Business
& Industry
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB980 by Eiland (Relating to workers' compensation
lifetime income benefits for certain compensable
injuries.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB980, As Introduced: negative impact of $(4,335,702) through the *
* biennium ending August 31, 2003. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(1,420,502) *
* 2003 (2,915,200) *
* 2004 (4,476,921) *
* 2005 (6,139,000) *
* 2006 (7,874,272) *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Probable Revenue Change in Number of *
* Year Savings/(Cost) from Gain/(Loss) from State Employees from *
* General Revenue Fund General Revenue Fund FY 2001 *
* 0001 0001 *
* 2002 $(1,420,502) $0 0.0 *
* 2003 (3,488,854) 573,654 12.0 *
* 2004 (5,050,575) 573,654 12.0 *
* 2005 (6,712,654) 573,654 12.0 *
* 2006 (8,447,926) 573,654 12.0 *
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Technology Impact
No significant technology impact is anticipated.
Fiscal Analysis
The bill would amend section 408.161(a) of the Labor Code to extend
lifetime income benefits to include injured workers whose injury resulted
in "...a disabling neurological or psychiatric condition that
substantially limits at least one major life activity of the employee."
Currently, neither the Labor Code nor Texas Workers' Compensation
Commission (TWCC) rules provide definitions of "substantially limits" or
"major life activity" to fully determine the population of injured
workers to be affected. Lifetime income benefits do not currently
terminate if the employee resumes work at a later date.
The bill would take effect on September 1, 2001 and would apply to only
those injuries occurring after that date.
Methodology
The State Office of Risk Management (SORM) estimates 50 injured state
employees would qualify under this new provision each year. The maximum
weekly payments for lifetime income benefits in 2001 are $533 and SORM
estimates this will increase 3 percent annually. SORM also estimates the
average duration of lifetime income benefit claims can be as high as 40
years.
TWCC estimates the agency would need to develop rules to define new terms
and concepts, provide oversight to detect fraud, and process an
additional 250 disputes per month requiring twelve additional FTEs. The
costs of these FTEs would begin in fiscal 2003 and remain constant
through subsequent years.
It is assumed that TWCC would adjust their maintenance tax rate to offset
any costs associated with the implementation of the bill
Local Government Impact
Lifetime income benefit amounts paid by local jurisdictions would
increase depending on the number of injured employees becoming qualified
under the new provision. The increased cost to local governments is
anticipated to be proportional to the increase expected by the state.
Source Agencies: 453 Texas Workers' Compensation Commission, 479
State Office of Risk Management, 478 Research and
Oversight Council on Workers' Compensation
LBB Staff: JK, JO, RT, KM