LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 26, 1999
TO: Honorable John Smithee, Chair, House Committee on
Insurance
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2793 by Gutierrez (Relating to motor vehicle insurance
verification and creating the motor vehicle insurance
verification program; providing administrative and
criminal penalties), Committee Report 1st House, as
amended
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2793, Committee Report 1st House, as amended: 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. *
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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:
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*Fiscal Probable Probable Revenue Change in Number of *
* Year Savings/(Cost) from Gain/(Loss) from State Employees from *
* State Highway Fund State Highway Fund FY 1999 *
* 0006 0006 *
* 2000 $(1,936,760) $0 5.0 *
* 2001 (347,406) 46,991,307 5.0 *
* 2002 (356,894) 47,663,286 5.0 *
* 2003 (356,894) 48,344,877 5.0 *
* 2004 (356,894) 49,036,212 5.0 *
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Technology Impact
All costs for the bill would be attributable to technology impact.
Fiscal Analysis
The bill would create a motor vehicle insurance verification program.
The Department of Public Safety would contract with a third party
vendor/agent to create and maintain a new database to identify drivers
and vehicles that are not in compliance with Chapter 601, Transportation
Code. The Department of Public Safety would provide information from
driver license records for use in the database. The Department of
Transportation would be required to provide a list of all motor vehicles
registered in Texas. All insurance companies would be required to
provide information on clients and vehicles for use in the database.
The Department of Public Safety would be responsible for the development
and production of a standardized proof of motor liability insurance
form. The bill would also require an additional motor vehicle
registration fee of $3.00 to be deposited in the State Highway Fund for
use in administering the verification program.
Methodology
Contract programming services would be used to develop the verification
database at an estimated cost of $950,400. Programs would require
modifications in several systems to allow access to the database by local
law enforcement agencies. The Department of Public Safety would require
5 full-time equivalent employees for the on-going maintenance of the
database: two Telecommunication Specialists IV, two Programmers V, and
one Programmer Analyst III. The design of the proof of insurance form,
with security features, would have a one-time cost of $400,000. The
Department of Transportation would require approximately $265,000 in
programming to allow for the collection and reporting of the $3.00 fee at
the time of registration. The Department would require $49,300 per year
to provide the periodic vehicle record information to be included in the
verification database.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 405 Department of Public Safety
LBB Staff: JK, TH