Honorable John T. Smithee, Chair, House Committee on Insurance
FROM:
John S. O'Brien, Director, Legislative Budget Board
IN RE:
HB1226 by Smithee (Relating to the subrogation interests of certain political subdivisions or insurance carriers providing reinsurance for subdivisions.), As Introduced
No fiscal implication to the State is anticipated.
The bill would amend Section 172.015, Local Government Code, to provide that in a third party recovery action, a payor of employee benefits would not be charged a fee for recovery of interest that exceeds one-third of the payor's recovery.
Local Government Impact
The fiscal impact to local governmental entities would vary depending on the number of applicable cases and amounts of recovery; however, the fiscal impact is not expected to be significant. For example, according to estimates by the Texas Association of Counties, there would be a statewide cost to counties in the aggregate of approximately $250,000.