TO: | Honorable Joe Straus, Speaker of the House, House of Representatives |
FROM: | John S O'Brien, Director, Legislative Budget Board |
IN RE: | HB2277 by Eiland (Relating to the sale, exchange, or replacement of life insurance and annuity contracts.), As Passed 2nd House |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2012 | $52,500 |
2013 | $0 |
2014 | $0 |
2015 | $0 |
2016 | $0 |
Fiscal Year | Probable Revenue Gain/(Loss) from General Revenue Fund 1 |
Probable Revenue Gain/(Loss) from Dept Ins Operating Acct 36 |
Probable Savings/(Cost) from Dept Ins Operating Acct 36 |
Probable Revenue Gain/(Loss) from Insurance Maint Tax Fees 8042 |
---|---|---|---|---|
2012 | $52,500 | $53,600 | ($53,600) | $196,537 |
2013 | $0 | $0 | $0 | $232,486 |
2014 | $0 | $0 | $0 | $232,486 |
2015 | $0 | $0 | $0 | $232,486 |
2016 | $0 | $0 | $0 | $232,486 |
Fiscal Year | Probable Savings/(Cost) from Insurance Maint Tax Fees 8042 |
Change in Number of State Employees from FY 2011 |
---|---|---|
2012 | ($196,537) | 3.0 |
2013 | ($232,486) | 3.0 |
2014 | ($232,486) | 3.0 |
2015 | ($232,486) | 3.0 |
2016 | ($232,486) | 3.0 |
Based on the analysis provided by TDI, implementation of the bill would expand the duties and increase the workload of TDI’s fraud unit and financial examination division. The agency indicates that implementation of this bill would require 2.0 additional full-time-equivalent positions (FTEs) in the fraud unit and 1.0 additional FTEs in the financial division. Each year the 3.0 FTEs would cost $166,206 in salaries and wages, $46,305 in benefit costs, $13,300 in travel, $5,850 for telephones and consumables, and $825 in other operating expenses. One-time equipment and other operating expenses expenditures are anticipated to be $17,651 in fiscal year 2012.
Based on the information provided by TDI, this analysis assumes that implementation of the bill would result in a one-time revenue gain ($53,600 in fiscal year 2012) in General Revenue-Dedicated Texas Department of Insurance Fund 36 (GR-D Fund 36) from filing fees and a one-time revenue gain ($52,500 in fiscal year 2012) in General Revenue from assessed penalties. It is assumed that the gain to GR-D Fund 36 would partially fund the cost of the FTEs in fiscal year 2012. It is assumed that the remaining cost of the FTEs would be funded from General Revenue – Insurance Maintenance Tax and Insurance Department Fees. Since insurance maintenance tax is self-leveling, this analysis assumes that the costs to implement this bill would come from fund balances or the maintenance tax would be set to recover a higher level of revenue.
Source Agencies: | 454 Department of Insurance
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LBB Staff: | JOB, SD, MW, CH, KJG
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