LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 15, 1997
TO: Honorable Fred M. Bosse, Chair IN RE: Senate Bill No. 1339, Committee Report 2nd House, as amended
Committee on Land and Resource Management By: Patterson, Jerry
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB1339 ( Relating
to coastal erosion.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB1339-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 create the Coastal Erosion Response Fund in the
State Treasury to receive all money appropriated and revenue
collected for use in erosion response activities. Revenue from
two new sources would be deposited to the fund: a $1 dollar
surcharge on each Texas windstorm and hail insurance and Texas
fire and explosion insurance issued through the Texas Catastrophe
Property Insurance Association (TCPIA), and sales of specially-designed
"Don't Mess with Texas Beaches" license plates ($25 per plate).
The Texas Department of Transportation (TxDOT) could charge
a fee of up to five dollars per license plate to defray costs.
Methodolgy
The TCPIA provided information on the number of policies that
would be subject to the surcharge. The estimated income from
license plates is derived from information obtained from the
Comptroller of Public Accounts, the General Land Office and
TxDOT. No data were available on which to base an estimate
of fleet sales (50 or more) at $15 per plate, so the license
plate income reflects sale of individual plates only.
Costs
to TxDOT include programming costs in fiscal year 1998, as well
as an initial cost to process, manufacture and distribute new
plates ($8.24 per plate). This estimate assumes that TxDOT
would charge the maximum allowable fee and that all costs and
revenue will be attributed to the State Highway Fund.
Costs
and revenues were adjusted to reflect program start-up time
in fiscal year 1998. Although no expenditures are shown from
the new fund, it would be expected that available revenue would
fund coastal erosion response activities and local assistance
grants.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
are estimated as follows:
Five Year Impact:
Fiscal Year Probable Revenue Probable Revenue Probable
Gain/(Loss) from Gain/(Loss) from Savings/(Cost)
New - Coastal State Highway Fund from State
Erosion Response Highway Fund
Fund
NEW-OTH 0006 0006
1998 $103,000 $6,000 ($28,900)
1998 135,500 12,500 (2,100)
2000 138,000 13,000 (2,100)
2001 140,500 13,500 (2,200)
2002 143,000 14,000 (2,300)
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
Based on balances in the Coastal Erosion Response Fund, units
of local governmental could apply for and receive grant funding
to conduct erosion response activities. Grant funding could
be used as a match in seeking other funding, however, the GLO
may establish cost share requirements for any proposed project
or grant.
Local governments may lose certain property from
their tax rolls to the Permanent School Fund if the property
becomes submerged due to erosion.
Source: Agencies: 304 Comptroller of Public Accounts
305 General Land Office and Veterans' Land Board
454 Department of Insurance
601 Department of Transportation
LBB Staff: JK ,BB ,NT