LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 12, 1997
TO: Honorable James E. "Pete" Laney IN RE: House Bill No. 1387, As Passed 2nd House
Speaker of the House Gray
House of Representatives
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB1387 ( Relating
to the continuation and functions of the Automobile Theft Prevention
Authority.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB1387-As Passed 2nd House
Implementing the provisions of the bill would result in a net
positive impact of $6,474,000 to General Revenue Related Funds
through the biennium ending August 31, 1999.
Fiscal Analysis
The bill would allow for the continuation of the Automobile
Theft Prevention Authority (ATPA). In addition, the bill would
require insurers to pay their annual assessment fee on a semiannual
basis.
Methodolgy
The assessment paid by insurers for the use by the ATPA would
be made on the following schedule; the August 1, 1998 payment
would be applicable to policies issued, delivered, or renewed
from January 1 through June 30 of the same calendar year; and
the March 1, 1999 payment would be applicable to policies issued,
delivered, or renewed from July 1 through December 31 of the
previous calendar year. The March 1, 1998 payment would be
governed under current law and would apply to all of calendar
1997
The Comptroller has estimated that net fiscal effect
of the bill would be to generate a one-time "speed-up" of January
through June 1998 assessments (which would otherwise not be
received until the next fiscal year, in March, 1999) in August
1998. The gain would occur for fiscal 1998 without increasing
the amount owed by the industry. The gain in fiscal 1999 would
come about because of the increased interest earnings on the
August 1998 semiannual payment. In each succeeding fiscal year
thereafter, however, there would be minor interest losses because
the March collection would be cut in half, and interest earnings
on the August payment would accrue for only one month before
the fiscal year closed.
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 Revenue
Gain/(Loss) from
General Revenue
Fund
0001
1998 $6,180,000
1998 294,000
2000 (26,000)
2001 (21,000)
2002 (28,000)
Net Impact on General Revenue Related Funds:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $6,180,000
1999 294,000
2000 (26,000)
2001 (21,000)
2002 (28,000)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No fiscal implication to units of local government is anticipated.
Source: Agencies: 304 Comptroller of Public Accounts
601 Department of Transportation
LBB Staff: JK ,JD ,PE ,ML