LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session March 26, 1999 TO: Honorable Clyde Alexander, Chair, House Committee on Transportation FROM: John Keel, Director, Legislative Budget Board IN RE: HB1708 by Maxey (Relating to the maximum fee a tow truck may charge for a nonconsent tow; providing civil and criminal penalties.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1708, As Introduced: positive impact of $0 through the biennium * * ending August 31, 2001. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $0 * * 2001 0 * * 2002 0 * * 2003 0 * * 2004 0 * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Cost from State Change in Number of State * * Year Highway Fund Employees from FY 1999 * * 0006 * * 2000 $(258,514) 3.0 * * 2001 (240,543) 3.0 * * 2002 (240,543) 3.0 * * 2003 (240,543) 3.0 * * 2004 (240,543) 3.0 * *************************************************************************** Fiscal Analysis The bill would set maximum fees for nonconsent tows and provide for civil and criminal penalties. Methodology The Department of Transportation, TxDot, estimates there are 5,127 towing companies registered with the department. In fiscal year 1998, the department estimated it received 2,010 inquiries concerning tow truck operators and had 414 complaints filed against tow truck operators. TxDot estimates that the department would receive additional inquiries and have more complaints filed against tow truck operators and vehicle storage facilities, pursuant to provisions of the bill, that would require additional administrative review and on-site investigations. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, PE, ML