LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 9, 1997 TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 1486 Committee on State Affairs By: Bivins Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB1486 ( Relating to the regulation of motor carriers.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB1486-As Introduced Implementing the provisions of the bill would result in a net positive impact of $18,543,150 to General Revenue Related Funds through the biennium ending August 31, 1999. Fiscal Analysis The bill would provide for an optional two-year motor carrier registration and the issuance of a temporary permit that is valid for less than one year. The bill would add new sections to the definition of a commercial motor vehicle pertaining to vehicle weights and vehicles operated for compensation or hire. Methodolgy The Department of Transportation assumes that the additional population of new carriers and vehicles required to be registered as Texas motor carriers would include all operators of vehicles weighing between 10,000 and 26,000 pounds which transport commodities across state lines, regardless of the "for hire" status of the vehicles. In addition, the department assumes that all operators of for-hire vehicles designed to carry between seven and fifteen passengers would be required to register as motor carriers under provisions of the bill. The department has estimated that 47,500 additional carriers and 380,000 additional vehicles would be required to be registered. The department has estimated that an additional twenty-six staff at a total annual cost of $796,433 would be required to process the additional registrations. Additional operating costs were estimated to be $432,920 for fiscal year 1998 and $112,888 in fiscal year 1999 and thereafter. The department has estimated that revenue for the registration of additional motor carriers and vehicles would be $13.35 million for 1998 and $5,193,150 every year thereafter. 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 Revenue Change in Number Savings/(Cost) Gain/(Loss) from of State from State General Revenue Employees from Highway Fund Fund FY 1997 0006 0001 1998 ($1,229,353) $13,350,000 26.0 1998 (909,321) 5,193,150 26.0 2000 (909,321) 5,193,150 26.0 2001 (909,321) 5,193,150 26.0 2002 (909,321) 5,193,150 26.0 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 $13,350,000 1999 5,193,150 2000 5,193,150 2001 5,193,150 2002 5,193,150 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 LBB Staff: JK ,JD ,ML