LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 11, 2001
TO: Honorable David Sibley, Chair, Senate Committee on
Business & Commerce
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB444 by Fraser (Relating to a study of fraud in the
unemployment insurance system. ), Committee Report 1st
House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB444, Committee Report 1st House, Substituted: 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. *
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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:
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*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 *
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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