LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session April 12, 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.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2793, 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 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 $(1,536,760) $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 * ************************************************************************** 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 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 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, 601 Department of Transportation LBB Staff: JK, TH, VS