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 ************************************************************************** * 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