LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 31, 1997
TO: Honorable Bob Bullock Honorable James E. "Pete" Laney
Lieutenant Governor Speaker of the House
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB1856 ( 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 SB1856-Conference Committee Report
Implementing the provisions of the bill would result in a
positive impact of $723,000 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. 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. All parties would enter
an agreement regarding responsibilities and costs associated
with implementation of the bill's provisions.
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
Savings/(Cost) Gain/(Loss) from
from General General Revenue
Revenue Fund Fund
0001 0001
1998 ($1,626,168) $1,626,168
1998 (903,168) 1,626,168
2000 (903,168) 1,626,168
2001 (903,168) 1,626,168
2002 (903,168) 1,626,168
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
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
The bill would prohibit tax assessor-collectors in affected
areas from registering vehicles which do not pass the emissions
test. TxDOT estimates a possible state and local loss of approximately
$6 million in vehicle registration revenue. In addition, 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