LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
 
April 19, 2009

TO:
Honorable Robert Duncan, Chair, Senate Committee on State Affairs
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
SB442 by Lucio (Relating to the receipt of death benefits in the workers' compensation system.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for SB442, As Introduced: an impact of $0 through the biennium ending August 31, 2011.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2010 $0
2011 $0
2012 $0
2013 $0
2014 $0




Fiscal Year Probable (Cost) from
Subsequent Injury Fund
5101
2010 ($213,367)
2011 ($213,367)
2012 ($213,367)
2013 ($213,367)
2014 ($213,367)

Fiscal Analysis

The bill would amend the Labor Code regarding claims for death benefits under the worker's compensation system. The bill would expand the definition of eligible parent to receive payment of death benefits if a compensable injury to a covered employee results in death.

The bill would take effect September 1, 2009.


Methodology

The Subsequent Injury Fund receives payments from worker's compensation carriers on the death of covered employees when no person entitled to compensation survives such employees. The changes to the Labor Code will make additional adoptive parents and stepparents eligible to receive death benefits in all cases where there are no other legal beneficiaries, and will also result in more timely claims for death benefits being filed. These changes will result in reduced payments to the Subsequent Injury Fund by insurance carriers.

Based on analysis provided by the Texas Department of Insurance, it is anticipated that five additional claims for death benefits will occur, resulting in a cost of $213,367.


Technology

No technology impact is anticipated

Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
304 Comptroller of Public Accounts, 454 Department of Insurance
LBB Staff:
JOB, KJG, CH