LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

May 8, 2003

TO:	Honorable Bill Ratliff, Chair, Senate Committee on State Affairs
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	SB637 by Nelson (Relating to elimination of the state payment for certain national insurance database fees.), Committee Report 1st House, Substituted

Estimated Two-year Net Impact to General Revenue Related Funds for SB637, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2005.

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
2004	$0
2005	$0
2006	$0
2007	$0
2008	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain/(Loss) from DEPT INS OPERATING ACCT 36	Probable Savings/(Cost) from DEPT INS OPERATING ACCT 36
2004	($1,500,000)	$1,500,000
2005	($1,500,000)	$1,500,000
2006	($1,500,000)	$1,500,000
2007	($1,500,000)	$1,500,000
2008	($1,500,000)	$1,500,000

Fiscal Analysis

The bill would move the responsibility for the National Association of Insurance Commissioners (NAIC) database filing fee from the Department of Insurance to insurance companies.

Methodology

By requiring insurance companies to pay the NAIC database filing fee, the Department of Insurance would no longer have to collect and expend $1,500,000 each year for this purpose from insurance companies.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

454 Department of Insurance

LBB Staff:

JK, JO, RR, RT, RB