LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              March 8, 1999
  
  
          TO:  Honorable Clyde Alexander, Chair, House Committee on
               Transportation
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB352  by Denny (Relating to the limit on fines collected
               by municipalities for traffic violations.), As Introduced
  
**************************************************************************
*  No significant fiscal implication to the State is anticipated.        *
**************************************************************************
  
The bill could result in a small revenue increase to the state, but the
increase is not expected to be significant.
  
Local Government Impact
  
The bill would require fines from all vehicle and traffic violations to
be used in the calculation of the amount a municipality with a population
under 5,000 must remit to the state in excess highway fines (revenues
from fines over 30 percent of a municipalities total revenue). Under
current law, only moving violations and inspection violations are counted
in the 30 percent cap.

Municipalities currently remitting excess highway fines to the state
would be required to remit additional fine revenue to the state,
depending on the amount of vehicle and traffic violation fines being
collected that are not related to moving violations and inspection
violations. There could be additional municipalities that would exceed
the 30 percent cap as a result of the bill's enactment. These
municipalities thus would be required to remit a portion of vehicle and
traffic violations fine revenue to the state.

According to the comptroller, there were only two cities that paid a
total of $65,845 to the state in excess highway fines in fiscal year
1998. Based on this data, it is not expected that the bill would affect
a significant number of municipalities or that the amount of additional
revenue to the state would be significant.
  
  
Source Agencies:   
LBB Staff:         JK, PE, TL