LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 28, 2001 TO: Honorable Jim Solis, Chair, House Committee on Economic Development FROM: John Keel, Director, Legislative Budget Board IN RE: HB1397 by Brimer (Relating to a study by the Texas Workforce Commission of fraud in the unemployment insurance system.), Committee Report 1st House, as amended ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1397, Committee Report 1st House, as amended: negative impact * * of $(277,290) 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 $(277,290) * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Savings/(Cost) from * * General Revenue Fund * * 0001 * * 2002 $(277,290) * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * ***************************************************** Fiscal Analysis The bill amends Section 213.010 of the Labor Code, requiring the Office of the State Auditor to conduct a study to determine the number of fraudulent claims filed for unemployment insurance benefits which are paid and the number and amount of fraudulent underpayments of unemployment insurance taxes by employers. If enacted with a two-thirds vote of all of the members of each house, the bill would take immediate effect. If enacted without a two-thirds vote, it would be effective September 1, 2001. Methodology The State Auditor's Office estimates a cost of $277,290 and 2.4 FTEs to conduct the study in fiscal year 2002 based upon a projection of 4000 hours work, a $54.04 per hour billing rate, and a ratio of 1700 hours of work per FTE. The total estimated amount includes indirect costs, such as administration and rent. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 308 State Auditor's Office LBB Staff: JK, JO, RT, HL