LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session March 19, 1999 TO: Honorable David Swinford, Chair, House Committee on Agriculture & Livestock FROM: John Keel, Director, Legislative Budget Board IN RE: HB2107 by Cook (Relating to assistance to certain volunteer fire departments and to the imposition of a tax to finance that assistance.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2107, 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 Revenue Probable Change in Number of * * Year Gain/(Loss) from New Savings/(Cost) from State Employees from * * - GR Dedicated - New - GR Dedicated - FY 1999 * * Rural Volunteer Fire Rural Volunteer Fire * * Department Department * * Assistance Account Assistance Account * * 2000 $375,000 $(375,000) 0.0 * * 2001 394,000 (394,000) 0.0 * * 2002 414,000 (414,000) 0.0 * * 2003 434,000 (434,000) 0.0 * * 2004 456,000 (456,000) 0.0 * ************************************************************************** Fiscal Analysis The bill would allow the Texas Forest Service (TFS) to assist certain volunteer fire departments in paying for equipment and training of personnel through a Rural Volunteer Fire Department Assistance Program (program). The director of the TFS would appoint an advisory committee to advise in regard to the administration of the program. The annual revenues, based on the Comptroller's Office estimates, would be collected through a fireworks sales tax that would be imposed on the retail sale of fireworks. TFS would use these funds to administer the program. The bill would create a new dedicated account in the General Revenue Fund - Rural Volunteer Fire Department Assistance (account). The Comptroller's Office would allocate the revenue from the imposed tax and contributions from other sources to the new account only for the purpose of administering the program. Methodology The TFS would require no additional FTEs to administer the program. There would be no significant administrative costs to the Comptroller's Office. Projected fireworks sales volumes were multiplied by the proposed two percent fireworks tax rate to determine the gain to the new account. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, DE, KC