LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 7, 1997
TO: Honorable Warren Chisum, Chair IN RE: House Bill No. 3463, Committee Report 1st House, Substituted
Committee on Environmental Regulation By: Chisum
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB3463 ( Relating
to the inspection and maintenance of certain motor vehicles
for air pollution control; providing criminal penalties.) this
office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB3463-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.
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 amend statutes relating to the state's inspection
and maintenance (I&M) program to conform to the Texas Motorists'
Choice program as authorized by the Governor's Executive Order.
The bill would also prohibit county tax assessor-collectors
from registering vehicles which have not passed emission inspections
required by provisions of this bill.
Methodolgy
The Texas Department of Public Safety (DPS) estimates it will
require an $1.6 million in general revenue in 1998, and $900,000
each fiscal year thereafter to implement and administer the
remote sensing provision of the bill, which is included in the
Governor's executive order, but has not been implemented. The
bill would allow DPS to set fees in an amount sufficient to
offset these costs.
The Department of Transportation (TxDOT)
projects expenditures of $164,000 in 1998 and approximately
$60,000 each year thereafter to enter and maintain data on vehicles
which do not pass the vehicle emissions test and therefore could
not be registered. These costs would be reimbursed by the Texas
Natural Resource Conservation Commission under provisions of
the bill.
TxDOT further estimates that as much as $6 million
in state and local revenue could be lost as a result of vehicles
which could not be registered due to noncompliance with provisions
of the I&M program.
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 Probable Revenue Probable
Savings/(Cost) Savings/(Cost) Gain/(Loss) from Savings/(Cost)
from General from State State Highway Fund from Clean Air
Revenue Fund Highway Fund Account/
GR-Dedicated
0001 0006 0006 0151
1998 ($1,626,168) ($164,321) $164,321 ($164,321)
1998 (903,168) (59,258) 59,258 (59,258)
2000 (903,168) (60,444) 60,444 (60,444)
2001 (903,168) (61,048) 61,048 (61,048)
2002 (903,168) (61,658) 61,658 (61,658)
Fiscal Year Probable Revenue Probable
Gain/(Loss) from Savings/(Cost)
General Revenue from Clean Air
Fund Account/
GR-Dedicated
0001 0151
1998 $1,626,168 $164,321
1999 1,626,168 59,258
2000 1,626,168 60,444
2001 1,626,168 61,048
2002 1,626,168 61,658
Net Impact on General Revenue Related Funds:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $0
1999 723,000
2000 723,000
2001 723,000
2002 723,000
The bill would prohibit tax assessor-collectors in affected
areas from registering vehicles which do not pass the emissions
test. Preliminary estimates by the TxDOT indicate a possible
state and local loss of approximately $6 million in vehicle
registration revenue. In addition, the TxDOT states that possible
lag time in updating the registration and title database could
impact a tax assessor-collector's ability to issue timely registrations.
Source: Agencies: 405 Department of Public Safety
582 Natural Resources Conservation Commission
601 Department of Transportation
LBB Staff: JK ,BB ,MS