LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 20, 2001 TO: Honorable Fred M. Bosse, Chair, House Committee on Civil Practices FROM: John Keel, Director, Legislative Budget Board IN RE: HJR22 by Wilson (Proposing a constitutional amendment relating to certain claims against the state and agencies of the state.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HJR22, Committee Report 1st House, Substituted: negative impact * * of $(12,580,000) 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 $(12,580,000) * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Savings/(Cost) from * * General Revenue Fund * * 0001 * * 2002 $(12,580,000) * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * ***************************************************** Fiscal Analysis The resolution as substituted proposes a constitutional amendment to abolish sovereign immunity for the state government in two specific cases: the Texas A&M bonfire collapse and the Prairie View A&M van crash. Persons could sue the state for damages incurred in those cases and collect damage awards limited to $250,000 for each individual. The election on the proposed amendment would be held November 6, 2001, and actions authorized by the resolution must be filed by November 6, 2002. Methodology The estimated impact from passage of this resolution is projected to be as much as $12,500,000. There were 11 individuals either killed or injured in the Prairie View A&M van crash. If all affected parties sued and collected maximum damages, the cost would be $2,750,000. There were 39 individuals either killed or injured in the Texas A&M bonfire collapse. If all affected parties sued and collected maximum damages, the cost would be $9,750,000. In addition to the cost of any damages awarded, there would be a cost of $80,000 to the state for publication of the resolution in fiscal year 2002. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 302 Office of the Attorney General, 307 Secretary of State, 710 The Texas A&M University System, 715 Prairie View A&M University LBB Staff: JK, TB, SC