LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 6, 1999
TO: Honorable Bob Turner, Chair, House Committee on Public
Safety
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB2794 by Gutierrez (Relating to the automation of the
compulsory motor vehicle inspection system.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB2794, As Introduced: positive impact of $10,504,949 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 $4,863,938 *
* 2001 5,641,011 *
* 2002 5,853,867 *
* 2003 6,074,173 *
* 2004 6,302,190 *
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All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) *
* Year General Revenue Fund from General Revenue Fund *
* 0001 0001 *
* 2000 $(22,466,004) $27,329,942 *
* 2001 (22,645,479) 28,286,490 *
* 2002 (23,422,651) 29,276,518 *
* 2003 (24,227,023) 30,301,196 *
* 2004 (25,059,548) 31,361,738 *
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Technology Impact
The Department of Public Safety (DPS) would require $1,012,000 in fiscal
year 2000 for equipment, contract programming, and other information
resource requirements. Hardware, software and related costs are
estimated at $440,584 for subsequent years. A contract vendor would
provide most of the information resource requirements to implement the
bill and would account for the remainder of project costs. Outside
vendor costs to transmit and capture the data are estimated at $1.57 per
inspection.
Fiscal Analysis
The bill would require the automation of the compulsory motor vehicle
inspection system. The Department would be allowed to charge an
additional $2 fee to implement the program.
Methodology
The Department estimates start-up costs for computer automation and
programming would be $1,012,000 for the first year, and $440,584 each
year thereafter. In 1998, there were 12,756,397 inspection certificates
sold by DPS to inspection stations in Texas. Over the past 3 years,
there has been an approximate 3.5% increase in inspection certificates
sold each year. If this trend continues, there would be approximately
13,664,971 inspection certificates sold in fiscal year 2000, increasing
to 15,680,869 in fiscal year 2004. The bill would authorize the
Department to increase the cost of each certificate by $2.00. This fee
increase would generate revenue of $27,329,942 in fiscal year 2000,
increasing to $31,361,738 in fiscal year 2004. The Department estimates
vendor costs to transmit and capture the data at $1.57 per inspection
which would total $21,454,004 in fiscal year 2000, increasing to
$24,618,964 in fiscal year 2004.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
LBB Staff: JK, MD, VS