TO: | Honorable John Carona, Chair, Senate Committee on Business & Commerce |
FROM: | Ursula Parks, Director, Legislative Budget Board |
IN RE: | SB491 by Lucio (Relating to establishing a personal automobile insurance program for certain low-income individuals; authorizing a fee.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2014 | $0 |
2015 | $0 |
2016 | $0 |
2017 | $0 |
2018 | $0 |
Fiscal Year | Probable Revenue Gain/(Loss) from Insurance Maint Tax Fees 8042 |
Probable Savings/(Cost) from Insurance Maint Tax Fees 8042 |
Change in Number of State Employees from FY 2013 |
---|---|---|---|
2014 | $595,036 | ($595,036) | 8.8 |
2015 | $552,687 | ($552,687) | 8.8 |
2016 | $552,687 | ($552,687) | 8.8 |
2017 | $552,687 | ($552,687) | 8.8 |
2018 | $552,687 | ($552,687) | 8.8 |
This bill would implement recommendations in the report "Reduce the Number of Uninsured Drivers by Establishing a Low-Income Automobile Insurance Program" in the Legislative Budget Board's Government Effectiveness and Efficiency Report submitted to the Eighty-third Texas Legislature, 2013.
The bill would require the Texas Department of Insurance (TDI) to establish a low-income automobile insurance program providing minimum liability automobile insurance to qualifying low-income individuals and to establish an appeals process for program applicants to appeal the denial of an application for coverage.
TDI reports it is difficult to predict the number of applications that would be filed and phone inquiries that would result from the provisions of this bill. For this estimate, TDI assumed 7,508 applications for low-income automobile insurance program participation would be received, and 29,734 telephone inquiries. TDI indicated it would need 8.8 FTE's at a total cost of $490,233 per fiscal year to process program applications, process phone inquiries, and provide program support. Additional costs of $62,454 per fiscal year would be incurred from professional services, procuring telephone services and consumable supplies, and other operating expenses. In fiscal year 2014, TDI reports $42,349 will be needed for a one-time cost associated with equipment.
Source Agencies: | 454 Department of Insurance
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LBB Staff: | UP, RB, JI, MMe, ER
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