LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

May 21, 2007

TO:	Honorable Tom Craddick, Speaker of the House, House of Representatives
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB155 by Pickett (Relating to correcting errors in the distribution of benefits by a public retirement system. ), As Passed 2nd House

No fiscal implication to the State is anticipated.

The bill would require a public retirement system located in a county with a population of 650,000 or more that is located within 50 miles of an international border to issue notices to members in the event of an error in calculation of payments, would limit the period during which recoveries of overpayments could be made, and would establish a complaint process regarding errors in payment calculations. To the extent that limitations placed on the period during which a system has to recover funds associated with overpayments prevents recovery, systems would incur a loss. The extent of potential losses cannot be estimated.

Based on the 2000 U.S. Census and the geographical requirement, the bill would apply only to a public retirement system in El Paso County.

Local Government Impact

Because the bill would not have statewide impact on units of local government of the same type or class, no comment from this office is required by the rules of the House/Senate as to its probable fiscal implication on units of local government.

Source Agencies:

LBB Staff:

JOB, KJG, DB