LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 12, 1999
TO: Honorable David Sibley, Chair, Senate Committee on
Economic Development
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1787 by Bivins (Relating to the regulation of
insurance and to requirements regarding motor vehicle
insurance; establishing business offenses; providing
penalties.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1787, 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. *
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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 Cost from Probable Revenue Change in Number of *
* Year State Highway Fund Gain to State State Employees from *
* 0006 Highway Fund FY 1999 *
* 0006 *
* 2000 $(6,136,139) $4,352,400 61.0 *
* 2001 (5,598,744) 3,894,300 61.0 *
* 2002 (5,597,485) 3,436,200 61.0 *
* 2003 (5,596,225) 2,978,200 61.0 *
* 2004 (5,594,965) 2,520,000 61.0 *
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Fiscal Analysis
The bill would require the Texas Department of Transportation, TxDot, to
conduct random sampling of vehicle registrations for the purpose of
verifying proof of insurance. TxDot may request proof of insurance from
persons whose driver's license or registration have been suspended
within the preceding four years or an owner who has been convicted of
offenses found in the Motor Vehicle Safety Responsibility Act, Chapter
601, Transportation Code.
Methodology
The department estimates that approximately 41,666 questionnaire letters
would be mailed each month to the two sample categories as well as
approximately 10,000 suspension notices and 5,000 court supervision
letters. TxDot estimated that an additional 61 FTEs would be required to
oversee the mailing of questionnaires and suspension warnings, handle
written correspondence and verification process, keep track of
violations, and handle requests from insurance companies. Provisions of
the bill allow TxDot to recoup costs associated with administering the
mandatory insurance program. Any additional revenue would be deposited
into the General Revenue Fund. TxDot estimated there would be a revenue
gain from increased compliance and fee payment by owners for
reinstatement of the vehicle registration.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 454 Department of Insurance, 601 Department of
Transportation
LBB Staff: JK, TH, ML