LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 16, 2001
  
  
          TO:  Honorable Frank Madla, Chair, Senate Committee on
               Intergovernmental Relations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB740  by Bernsen (Relating to certain diseases or
               illnesses suffered by a firefighter.), As Introduced
  
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*  No fiscal implication to the State is anticipated.                    *
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The bill would require a political subdivision, including a home-rule
municipality, to reimburse a firefighter in their employ for reasonable
medical expenses in the treatment of lung disease or cancer if the
disease results in total disability or death or for hypertension or
heart disease that results in partial or total disability or death.
Under the provisions of the bill, it would be assumed that the
firefighter contracted the disease as a result of their firefighter
duties if their physical examination on entering or during employment
did not reveal any evidence of the illness or disease.  If cancer is
contracted within five years of having left employment with the fire
department, the political subdivision would still be responsible for the
medical expenses under the assumption that the cancer was a result of
the firefighter's exposure to cancer causing agents on the job. The
political subdivision could rebut the claim that the illness or disease
was job-related by showing through a preponderance of the evidence that
a risk factor, accident, or hazard not associated with firefighting
caused the person's illness or disease.
  
Local Government Impact
  
The bill would shift medical compensation for lung and heart disease and
cancer contracted by a firefighter from regular medical benefits to
worker's compensation, thus shifting the cost from the firefighter and
their health insurance provider to the political subdivision. The cities
of McKinney and Richardson responded to an inquiry about the potential
fiscal impact.

A representative from McKinney (population approximately 54,000;
firefighter staff of 54) reported that their firefighters had filed 60
worker's compensation claims since 1994, although the majority of those
were a result of back injuries and none were related to lung disease,
heart disease, or cancer. The cost to the city of the claims that were
filed was over $158,000. The city did not have records on how many, if
any, firefighters from their department had contracted any of the
applicable diseases. The city anticipates that if just one firefighter
were to file a worker's compensation claim under the provisions of the
bill, the cost to the city would be quite significant.

A representative from Richardson (population almost 75,000; firefighter
staff of 138) stated that their worker's compensation claims
administrator reports the cost associated with treating the diseases
listed in the bill usually exceed $100,000 per case. The representative
from Richardson estimated, based on existing staff and what would
otherwise be the firefighter's out of pocket expense, that the city could
potentially experience a loss of $241,500 per year.

If a political subdivision were to have to prove the firefighter's
lifestyle or other risk factors not related to the job were the cause of
the firefighter's illness or disease, the political subdivision would
also incur expenses associated with investigating and rebutting the
claim.

The fiscal impact to political subdivisions that employ firefighters
would depend on the number of claims filed and upheld against any
rebuttals by the political subdivision; the minimum cost for medical
expenses expected per claim would be $100,000.  It is anticipated that
for all but the largest political subdivisions, this amount would be
very difficult to absorb.  It is presumed the larger entities, however,
with a higher number of firefighting staff and firefighter response
calls, would have an increased potential for number of claims and would
also find the fiscal impact to be significant, as it would likely be
more than $100,000 annually.
  
  
Source Agencies:   325   Fire Fighters Pension Commission, 411   Texas
                   Commission on Fire Protection
LBB Staff:         JK, DB