LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 1, 2001
TO: Honorable Dale B. Tillery, Chair, House Committee on
Pensions & Investments
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1273 by Davis, John (Relating to creation of a benefit
fund and making a supplemental one-time payment for
certain peace officers and fire fighters disabled in the
line of duty.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1273, As Introduced: negative impact of $(6,900,000) 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. *
**************************************************************************
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $(3,450,000) *
* 2003 (3,450,000) *
* 2004 (3,450,000) *
* 2005 (3,450,000) *
* 2006 (3,450,000) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from *
* General Revenue Fund *
* 0001 *
* 2002 $(3,450,000) *
* 2003 (3,450,000) *
* 2004 (3,450,000) *
* 2005 (3,450,000) *
* 2006 (3,450,000) *
*****************************************************
Fiscal Analysis
This bill would create a benefit fund, the Peace Officer and Fire Fighter
Supplemental Payment Account, to provide a one-time disability payment
for certain peace officers and fire fighters. The GR-Dedicated account
would consist of gifts, grants, and other statutory revenue. A peace
officer or fire fighter would be eligible for a one-time payment of
$75,000 if the person sustained, in the performance of official duties,
an injury creating a total disability resulting in permanent incapacity
for work. This bill would take effect immediately upon enactment if it
received the a two-thirds majority vote in both houses of the
Legislature. Otherwise, it would take effect September 1, 2001.
Methodology
It is assumed that the gifts and grants received by the account would not
be sufficient to pay the benefits and that an appropriation of general
revenue funds would be necessary. There are an estimated 59,000 peace
officers and 38,000 fire fighters in the state who would be covered by
this bill. Based on the experience of one of the local police pension
funds in the state, it is estimated that an average of 46 peace officers
and fire fighters would be totally disabled each year as a result of
injuries sustained in the performance of official duties. At $75,000
per person, the cost is estimated at $3,450,000 each year.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 327 Employees
Retirement System
LBB Staff: JK, RB, SC