TO: | Honorable Steve Ogden, Chair, Senate Committee on Finance |
FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
IN RE: | HB1655 by Keffer, Jim (Relating to funding for the Texas statewide emergency services personnel retirement fund.), As Engrossed |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2006 | ($6,700,000) |
2007 | ($6,700,000) |
2008 | $0 |
2009 | $0 |
2010 | $0 |
Fiscal Year | Probable Revenue (Loss) from GENERAL REVENUE FUND 1 |
Probable Revenue Gain from EMS PERSONNEL RETIREMENT TRUST FUND 976 |
---|---|---|
2006 | ($6,700,000) | $6,700,000 |
2007 | ($6,700,000) | $6,700,000 |
2008 | $0 | $0 |
2009 | $0 | $0 |
2010 | $0 | $0 |
The bill would amend Chapter 221 of the Insurance Code, relating to the funding of the Texas Statewide Emergency Services Personnel Retirement Fund 0976.
The bill would allocate to Fund 0976, in each year of the 2006-07 biennium, $6,700,000 of the insurance premium tax receipts attributable to fire insurance and allied lines. The allocations would be made on or before March 15 of each year.
The provisions of this bill would expire December 31, 2007.
The bill would take effect immediately upon enactment, assuming that it received the requisite two-thirds majority votes in both houses of the Legislature. Otherwise, it would take effect September 1, 2005.
The Texas Constitution, Article VII, Section 3 dedicates 25 percent of the revenue derived from occupation taxes to GR Account 0193—Foundation School. The premium tax on property and casualty insurance, which includes fire and allied lines, is an occupation tax. As such, 25 percent of its proceeds are allocated to GR Account 0193, meaning that the allocations of premium tax revenues to Fund 0976, while calculated from total collections, would be drawn only from the General Revenue Fund 0001.
This legislation would create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. Therefore, the fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
Source Agencies: | 304 Comptroller of Public Accounts, 325 Fire Fighters' Pension Commissioner
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LBB Staff: | JOB, SD, SR, WP, DLBe
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