LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

April 5, 2009

TO:	Honorable Joe Deshotel, Chair, House Committee on Business & Industry
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB3960 by McReynolds (Relating to workers' compensation for employees and volunteers of an emergency service organization.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would amend the Labor Code regarding workers' compensation for employees and volunteers of an emergency service organization to include coverage of transportation to or from an emergency incident.

This cost analysis assumes that the bill would provide coverage for employees and volunteers of an emergency service organization under a workers’ compensation insurance policy or plan issued to the emergency service organization and that any injuries of employees doing volunteer emergency work would not be covered by the employees' full-time employer.   Based on the analysis by the State Office of Risk Management, the Texas Department of Insurance, the Texas A&M University System Administration, and the University of Texas System Administration, it is assumed that any costs associated with the implementation of this bill could be absorbed within existing agency resources.

Local Government Impact

The bill would amend the Labor Code regarding workers' compensation for employees and volunteers of an emergency service organization to include coverage of transportation to or from an emergency incident. The bill would require local governmental entities that provide worker’s compensation insurance policies or plans with coverage for emergency service organizations such as ambulance, fire, law enforcement, and disaster relief, to extend the coverage for injuries that were previously not compensable.
 
The fiscal impact to local governmental entities could be significant, but would vary depending on the number of emergency service organizations located in an area, and the number of claims made by emergency service personnel for insurance coverage under the provisions of the bill.

Source Agencies:

454 Department of Insurance, 479 State Office of Risk Management, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration

LBB Staff:

JOB, JRO, CH, MW