LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 7, 2025 TO: Honorable Jay Dean, Chair, House Committee on Insurance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2563 by Ashby (relating to establishment of the temporary certified and insured prescribed burn manager self-insurance pool; authorizing a fee.), Committee Report 1st House, Substituted The fiscal implications of the bill cannot be determined due to a lack of data on prescribed burn losses by prescribed burn managers in the state and the number of prescribed burn managers that would participate in the program being unknown. The bill would require the Texas A&M Forest Service (TAMFS) to administer a certified and insured prescribed burn manager (CIPBM) self-insurance program that identifies and evaluates risks arising from prescribed burns, maintains a loss-prevention and loss-control program to reduce such risks, consolidates and administers prescribed burn risk management and self-insurance programs, and provides prescribed burn self-insurance coverage to provide general liability coverage for prescribed burns conducted by a prescribed burn manager. The bill would set this program to expire September 1, 2040. The bill would establish the Temporary CIPBM Self-Insurance Fund as an account in a depository selected by the board of regents of The Texas A&M University System. The fund would be composed of legislative appropriations not to exceed $25.0 million, fees collected by TAMFS from participating prescribed burn managers, and interest on money in the fund. The bill would authorize TAMFS to assess and collect a reasonable fee from participating prescribed burn managers to provide self-insurance coverage.It is assumed that TAMFS would cover all annual operating costs with the premiums paid by the participating prescribed burn managers, however, TAMFS indicates that a minimum appropriation of $6.0 million would be needed as an initial reserve for claims to establish and operate the program. This amount is equivalent to three times the maximum loss amount defined in Natural Resources Code, Section 153.082. Local Government ImpactNo fiscal implication to units of local government is anticipated. Source Agencies: b > td > 304 Comptroller of Public Accounts, 454 Department of Insurance, 551 Department of Agriculture, 576 Texas A&M Forest Service, 710 Texas A&M University System Administrative and General Offices LBB Staff: b > td > JMc, AAL, LBO, CPo, NV
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 7, 2025
TO: Honorable Jay Dean, Chair, House Committee on Insurance FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2563 by Ashby (relating to establishment of the temporary certified and insured prescribed burn manager self-insurance pool; authorizing a fee.), Committee Report 1st House, Substituted
TO: Honorable Jay Dean, Chair, House Committee on Insurance
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB2563 by Ashby (relating to establishment of the temporary certified and insured prescribed burn manager self-insurance pool; authorizing a fee.), Committee Report 1st House, Substituted
Honorable Jay Dean, Chair, House Committee on Insurance
Honorable Jay Dean, Chair, House Committee on Insurance
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB2563 by Ashby (relating to establishment of the temporary certified and insured prescribed burn manager self-insurance pool; authorizing a fee.), Committee Report 1st House, Substituted
HB2563 by Ashby (relating to establishment of the temporary certified and insured prescribed burn manager self-insurance pool; authorizing a fee.), Committee Report 1st House, Substituted
The fiscal implications of the bill cannot be determined due to a lack of data on prescribed burn losses by prescribed burn managers in the state and the number of prescribed burn managers that would participate in the program being unknown.
The fiscal implications of the bill cannot be determined due to a lack of data on prescribed burn losses by prescribed burn managers in the state and the number of prescribed burn managers that would participate in the program being unknown.
The bill would require the Texas A&M Forest Service (TAMFS) to administer a certified and insured prescribed burn manager (CIPBM) self-insurance program that identifies and evaluates risks arising from prescribed burns, maintains a loss-prevention and loss-control program to reduce such risks, consolidates and administers prescribed burn risk management and self-insurance programs, and provides prescribed burn self-insurance coverage to provide general liability coverage for prescribed burns conducted by a prescribed burn manager. The bill would set this program to expire September 1, 2040. The bill would establish the Temporary CIPBM Self-Insurance Fund as an account in a depository selected by the board of regents of The Texas A&M University System. The fund would be composed of legislative appropriations not to exceed $25.0 million, fees collected by TAMFS from participating prescribed burn managers, and interest on money in the fund. The bill would authorize TAMFS to assess and collect a reasonable fee from participating prescribed burn managers to provide self-insurance coverage.It is assumed that TAMFS would cover all annual operating costs with the premiums paid by the participating prescribed burn managers, however, TAMFS indicates that a minimum appropriation of $6.0 million would be needed as an initial reserve for claims to establish and operate the program. This amount is equivalent to three times the maximum loss amount defined in Natural Resources Code, Section 153.082.
The bill would establish the Temporary CIPBM Self-Insurance Fund as an account in a depository selected by the board of regents of The Texas A&M University System. The fund would be composed of legislative appropriations not to exceed $25.0 million, fees collected by TAMFS from participating prescribed burn managers, and interest on money in the fund. The bill would authorize TAMFS to assess and collect a reasonable fee from participating prescribed burn managers to provide self-insurance coverage.It is assumed that TAMFS would cover all annual operating costs with the premiums paid by the participating prescribed burn managers, however, TAMFS indicates that a minimum appropriation of $6.0 million would be needed as an initial reserve for claims to establish and operate the program. This amount is equivalent to three times the maximum loss amount defined in Natural Resources Code, Section 153.082.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 454 Department of Insurance, 551 Department of Agriculture, 576 Texas A&M Forest Service, 710 Texas A&M University System Administrative and General Offices
304 Comptroller of Public Accounts, 454 Department of Insurance, 551 Department of Agriculture, 576 Texas A&M Forest Service, 710 Texas A&M University System Administrative and General Offices
LBB Staff: b > td > JMc, AAL, LBO, CPo, NV
JMc, AAL, LBO, CPo, NV