LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

April 23, 2007

TO:	Honorable Jim Keffer, Chair, House Committee on Ways & Means
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB2868 by Swinford (Relating to assessment of certain insurers to fund the volunteer fire department assistance fund.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB2868, As Introduced: an impact of $0 through the biennium ending August 31, 2009.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2008	$0
2009	$0
2010	$0
2011	$0
2012	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain from VOLUNTEER FIRE DEPT ASSISTANCE 5064
2008	$15,000,000
2009	$15,000,000
2010	$15,000,000
2011	$15,000,000
2012	$30,000,000

Fiscal Analysis

The bill would amend the Insurance Code to to increase the annual aggregate assessment on certain insurers to fund GR Account 5064—Volunteer Fire Department Assistance from $15 million to $30 million.

Methodology

Under current law, the Comptroller establishes an assessment rate against applicable insurers to yield aggregate assessment receipts of $15 million per year.  This bill would require that the annual rates be set to generate $30 million each year.  Because the bill would also repeal the September 1, 2011 expiration date for the assessment, the gain in fiscal 2012 and each year thereafter would be $30 million.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts, 454 Department of Insurance

LBB Staff:

JOB, CT, MW, SK