LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 2, 1997
TO: Honorable Clyde Alexander, Chair IN RE: House Bill No. 1387
Committee on Transportation By: Gray
House
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 Introduced
Implementing the provisions of the bill would result in a net
negative impact of $(54,000) to General Revenue Related Funds
through the biennium ending August 31, 1999.
Fiscal Analysis
The bill would require the Automobile Theft Prevention Authority
to contract only with the Texas Department of Transportation
to provide staff and services and would limit the administrative
expenses of the authority to 8 percent of its total expenditures
in any fiscal year..
The bill would require insurers to
pay their annual assessment fee on a semiannual basis (March
1 and August 1) instead of on an annual basis (March 1). The
March 1 payment would be applicable to policies issued, delivered,
or renewed from July 1 through December 31 of the previous calendar
year; and the August 1 payment would be applicable to policies
issued, delivered, or renewed from January 1 through June 30
of the current calendar year.
Methodolgy
The Comptroller has indicated that the state would experience
a revenue loss in the first year of implementation because the
first payment after enactment would be for the six-month period
July through December 1997. As such, all payments received
by insurers for the period January through June 1997 would remain
unremitted to the state. This revenue loss would be largely
mitigated, however, by the essential "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.
Revenue
losses indicated for fiscal years 1998 through 2002 are for
reduced interest income.
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 ($31,000)
1998 (23,000)
2000 (26,000)
2001 (21,000)
2002 (28,000)
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 ($31,000)
1999 (23,000)
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: 601 Department of Transportation
304 Comptroller of Public Accounts
LBB Staff: JK ,PE ,ML