LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 26, 1999
TO: Honorable J.E. "Buster" Brown, Chair, Senate Committee on
Natural Resources
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB 2719 by Swinford (Relating to the promotion of Texas
agricultural products; providing a penalty.), As Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2719, As Engrossed: negative impact of $(2,000,000) 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. *
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General Revenue-Related Funds, Five-Year Impact:
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* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(1,000,000) *
* 2001 (1,000,000) *
* 2002 (1,000,000) *
* 2003 (1,000,000) *
* 2004 (1,000,000) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Probable Probable Probable *
* Year Savings/(Cost) Revenue Savings/(Cost) Savings/(Cost) *
* from General Gain/(Loss) from New - GR from State *
* Revenue Fund from New - GR Dedicated - Go Highway Fund *
* 0001 Dedicated - Go Texan Partner 0006 *
* Texan Partner Program Fund *
* Program Fund *
* 2000 $(1,000,000) $1,050,000 $(2,050,000) $(39,970) *
* 2001 (1,000,000) 1,050,000 (2,050,000) (1,000) *
* 2002 (1,000,000) 1,050,000 (2,050,000) (1,000) *
* 2003 (1,000,000) 1,050,000 (2,050,000) (1,000) *
* 2004 (1,000,000) 1,050,000 (2,050,000) (1,000) *
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*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* State Highway Fund *
* 0006 *
* 2000 $10,000 *
* 2001 10,000 *
* 2002 10,000 *
* 2003 10,000 *
* 2004 10,000 *
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Technology Impact
The Texas Department of Transportation (TXDOT) has estimated technology
costs of $14,700 for fiscal year 2000 and $1,000 for fiscal year 2001.
The Texas Department of Agriculture (TDA) estimates that there would be
no technology impact to the agency.
Fiscal Analysis
The bill would create the "Go Texan" Partner Program at TDA to encourage
the marketing of Texas agricultural products through a cost-sharing
program and "Go Texan" Partner Program Advisory Board to advise TDA on
program activities. The expenses for program administration could not
exceed seven percent of the average "Go Texan" Partner Program Fund
Balance.
The bill would create a new dedicated account in the General Revenue
Fund, the "Go Texan" Partner Program Account.
The bill would authorize the issuance of "Go Texan" license plates.
TXDOT would issue "Go Texan" license plates for a $30 fee in addition to
the regular license plate fee. From the $30 fee, $25 would be deposited
to the "Go Texan" Partner Program Fund Account and the remaining $5 would
be deposited to State Highway Fund 006 for administration of the "Go
Texan" license plate program.
The bill would require TDA to promote and advertise the Texas Oyster
Industry through a specialized education, marketing and promotion
program.
Methodology
TDA estimates that the "Go Texan" Partner Program would cost $2,050,000
based on the assumption that the agency could generate $1 million from
producer contributions to the program and $50,000 from the sale of "Go
Texan" license plates. The remaining $1 million from general revenue
would match producer contributions.
TXDOT estimates, based on experience with other special license plates,
that the cost of producing "Go Texan" plates is $39,970 in fiscal year
2000 out of State Highway Fund 006. Operation cost for fiscal year 2001
and beyond is estimated at $1,000 per year. TDA estimates license plate
sales of 2,000 per year which would generate $60,000 per year.
According to TDA, any costs incurred by TDA for marketing and promoting
the Texas Oyster Industry would be offset by revenues from the Oyster
Sales Fee.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 551 Department of Agriculture
LBB Staff: JK, DE, TT