LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 3, 2001
TO: Honorable Fred M. Bosse, Chair, House Committee on Civil
Practices
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1119 by Dutton (Relating to tort liability of
governmental units.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1119, As Introduced: negative impact of $(1,231,000) 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 $(621,000) *
* 2003 (610,000) *
* 2004 (610,000) *
* 2005 (610,000) *
* 2006 (610,000) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Change in Number of State *
* Year General Revenue Fund Employees from FY 2001 *
* 0001 *
* 2002 $(621,000) 12.0 *
* 2003 (610,000) 12.0 *
* 2004 (610,000) 12.0 *
* 2005 (610,000) 12.0 *
* 2006 (610,000) 12.0 *
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Fiscal Analysis
The bill increases the statutory cap on damages for the tort liability of
governmental units. Currently, the Civil Practice and Remedies Code
provides that the liability of a unit of state government or a
municipality is limited to $250,000 per person and $500,000 per
occurrence for bodily injury or death, and $100,000 per occurrence for
property damage. Under this bill, monetary damages are limited to a
maximum amount of $500,000 for each person and $2 million for each
single occurrence for bodily injury or death, and $500,000 per
occurrence for property damage. This act would take effect September 1,
2001, and would apply only to a cause of action that accrues on or after
that date.
Methodology
The Office of the Attorney General (OAG) projects that the increase in
the maximum limits on tort claims will result in an increase in the
number of cases filed against the state as the higher award amounts will
make filing a lawsuit more attractive. The increase in the number of
cases is estimated to require an increase of 6 attorneys and 6 legal
support staff for the tort litigation division, at a cost of
approximately $610,000 annually. Costs in the first year would be
slightly higher due to the costs of additional furniture and equipment.
In addition to costs associated with defending against the additional
lawsuits, there will also be a negative impact related to increased
damage awards.
Local Government Impact
The liability of a unit of local government or an emergency service
organization is currently limited to $100,000 per person and $300,000
per occurrence for bodily injury or death, and $100,000 per occurrence
for property damage. This bill would increase those limits to $500,000,
$2 million, and $500,000, respectively. Local governmental entities
could incur a negative fiscal impact if they were to lose a lawsuit and
receive the increased maximum judgment against them.
Source Agencies: 304 Comptroller of Public Accounts, 302 Office of
the Attorney General
LBB Staff: JK, TB, SC, DB