LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 28, 1997
TO: Honorable John T. Smithee, Chair IN RE: House Bill No. 3453, Committee Report 1st House, Substituted
Committee on Insurance By: Gutierrez
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB3453 ( Relating
to the method of providing evidence of financial responsibility
for vehicle operation; providing administrative and criminal
penalties.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB3453-Committee Report 1st House, Substituted
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.
Fiscal Analysis
The bill would allow the implementation of a database that would
contain driver's license information from the Department of
Public Safety (DPS), motor vehicle information from the Texas
Department of Transportation, (TxDot), and vehicle insurance
information from all companies that write motor vehicle liability
insurance policies in the state. The bill would establish a
three dollar fee on each motor vehicle registration for the
implementation and administration of the provisions.
Methodolgy
The DPS estimated that approximately $2.3 million and five FTEs
would be required in fiscal year 1998 for database creation
and computer programming for implementation of the provisions.
DPS estimated that annual operational costs would total $244,420.
TxDot
estimated that costs for implementation in fiscal year 1998
would total $441,878. Annual operational costs for verification
of the individual's proof of financial responsibility, as estimated
by the TxDot, totaled $6,314,000.
TxDot estimated that approximately
91 percent of the total vehicle registrations in any fiscal
year would be subject to the payment of the three dollar fee.
In addition, the TxDot assumed a one percent increase in annual
registrations to estimate revenue gains to State Highway Fund
006, using fiscal year 1998 as a base. The department estimated
that for fiscal year 1998 approximately 13,658,071 (15,008,869
x .91) annual registrations would be assessed the three dollar
fee. Estimated revenue for fiscal year 1998 totaled approximately
$40.9 million.
TxDot would be required to reimburse DPS,
from the fees collected, for the costs associated with the administration
of the provisions of the bill.
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 Probable Change in Number
Gain/(Loss) from Savings/(Cost) of State
State Highway Fund from State Employees from
Highway Fund FY 1997
0006 0006
1998 $40,974,213 ($2,728,274) 5.0
1998 41,383,956 (6,558,420) 5.0
2000 41,797,794 (6,558,420) 5.0
2001 42,215,769 (6,558,420) 5.0
2002 42,637,926 (6,558,420) 5.0
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 $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.
Beginning September 1, 1998 counties would be required to verify
proof of financial responsibility via a magnetic card reader
each time registration is issued or an application for title
is filed. Counties could incur additional costs as a result
of the time involved for each verification.
Source: Agencies:
LBB Staff: JK ,TH ,ML