LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 26, 1997 TO: Honorable Kenneth Armbrister, Chair IN RE: House Bill No. 255, Committee Report 2nd House, as amended Committee on State Affairs By: Denny Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB255 ( Relating to permitting certain law enforcement authorities and probation officers to receive reduced airline fares while engaged in certain official duties. ) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB255-Committee Report 2nd House, as amended Implementing the provisions of the bill would result in a net impact of $0 to General Revenue Related Funds through the biennium ending August 31, 1999. 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 Analysis The bill would allow a county sheriff, deputy sheriff, or juvenile probation officer who is transporting a state prisoner to participate in the General Services Commission's (GSC) contracts for travel services so that these officials, and their prisoners, can receive reduced airline fares. The GSC would charge counties a fee for travel services received under this bill. Methodolgy Estimates are based on the commission's determination that extending travel contract eligibility to county sheriffs, deputy sheriffs, probation officers and their prisoners would significantly increase the agency's travel management workload. Counties would be charged a fee by the commission to recover the agency's costs. The GSC notes that use of the state's discounted airline fares by county officials may lead to fare increases under the state's travel contracts. This is based on the assumption that higher demand for discounted airfares would lead airlines to reduce the discount offered under state travel contracts in an attempt to recover lost revenue. The probable fiscal implications of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Five Year Impact: Fiscal Year Probable Probable Revenue Savings/(Cost) Gain/(Loss) from from Other - Other - Interagency Interagency Contracts Contracts OTHER-OTH OTHER-OTH 1998 ($50,964) $50,964 1998 (37,964) 37,964 2000 (37,964) 37,964 2001 (37,964) 37,964 2002 (37,964) 37,964 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $0 1999 0 2000 0 2001 0 2002 0 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. The GSC notes that use of the state's discounted airline fares by county officials would result in a potential savings of $8,750 per county or $750,000 statewide, minus fees paid to the GSC for administrative expenses. Actual savings would vary depending on each county's airline travel volume. County administrative costs associated with processing travel accounts may reduce these savings. Source: Agencies: 303 General Services Commission LBB Staff: JK ,JD ,RN