LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 16, 2001 TO: Honorable Jim Solis, Chair, House Committee on Economic Development FROM: John Keel, Director, Legislative Budget Board IN RE: SB444 by Fraser (Relating to a study of fraud in the unemployment insurance system.), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB444, As Engrossed: 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 Net 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 Probable Savings/(Cost) from Change in Number of State * * Year General Revenue Fund Employees from FY 2001 * * 0001 * * 2002 $(277,290) 2.4 * * 2003 0 0.0 * * 2004 0 0.0 * * 2005 0 0.0 * * 2006 0 0.0 * *************************************************************************** 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