TO:	Honorable Kelly Hancock, Chair, Senate Committee on Business & Commerce
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	HB3388 by Thompson, Ed (Relating to information regarding state agency vehicle fleets.), As Engrossed

The bill would amend Chapter 2171 of the Government Code to require a state agency with a fleet of more than 2,500 vehicles to establish and maintain a vehicle reporting system. The agency would be exempt from paying any fees to the Comptroller's Office of Vehicle Fleet Management (OVFM) for maintenance of the reporting system. Agencies exempt from paying the fee would continue to be required to submit, no later than October 15th of each year, the information requested by OVFM regarding the agency's vehicle fleet for the previous state fiscal year. 

It is assumed that any costs associated with implementing the provisions of the bill could be absorbed within existing resources. Currently, there are four agencies that maintain a vehicle fleet of more than 2,500 vehicles, including the Department of Criminal Justice (TDCJ), Department of Public Safety (DPS), Department of Transportation  (TxDOT), and Parks and Wildlife Department (TPWD).  TxDOT and TPWD indicated that they currently have a fleet management system that would provide the necessary information to comply with reporting requirements.  It is assumed that DPS and TDCJ also currently have a fleet management system in place to comply with any reporting requirements, since the agencies did not indicate any costs associated with implementing a new system.  According to the Comptroller, the four agencies pay a combined $90,000 in yearly fees to maintain the OVFM reporting system. The Comptroller indicates that the reduction of fees from the four agencies that would be exempt could increase fees to other agencies.  The fees would be collected as Interagency Contracts.

Local Government Impact

No fiscal implication to units of local government is anticipated.