LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session March 31, 1999 TO: Honorable David Swinford, Chair, House Committee on Agriculture & Livestock FROM: John Keel, Director, Legislative Budget Board IN RE: HB 2719 by Swinford (relating to the promotion of Texas agriculture products; providing a penalty), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2719, Committee Report 1st House, Substituted: 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. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * 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) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *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) * *************************************************************************** ***************************************************** * 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 * ***************************************************** 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. Methodology TDA estimates that the "Go Texan" Partner Program would cost $2,050,000 based on the assumption that the agency could generate $1,000,000 from producer contributions to the program and $50,000 from the sale of "Go Texan" license plates. The remaining $1,000,000 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. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, DE, TT