LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 21, 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), Committee Report 1st House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1787, Committee Report 1st House, Substituted: positive impact *
* of $1,114,447 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 $1,328,400 *
* 2001 (213,953) *
* 2002 (672,053) *
* 2003 (1,130,053) *
* 2004 (1,588,053) *
****************************************************
All Funds, Five-Year Impact:
***********************************************************************
*Fiscal Probable Probable Probable Probable Change in *
* Year Revenue Revenue Revenue Cost from Number of *
* Loss to Gain to Gain to State State *
* General General State Highway Employees *
* Revenue Revenue Highway Fund from FY 1999 *
* Fund Fund Fund 0006 *
* 0001 0001 0006 *
* 2000 $2,840,400 $4,352,400 $0 (11.0) *
* $(1,512,000) *
* 2001 (1,512,000) 1,298,047 3,894,300 (2,596,253) (7.0) *
* 2002 (1,512,000) 839,947 3,436,200 (2,596,253) (7.0) *
* 2003 (1,512,000) 381,947 2,978,200 (2,596,253) (7.0) *
* 2004 (1,512,000) (76,053) 2,520,200 (2,596,253) (7.0) *
***********************************************************************
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.
Methodology
The Texas Department of Transportation assumed that the primary
day-to-day functions required by provisions of the bill would be
outsourced to a private vendor. TxDot estimated that cost to be
$2,405,742 each fiscal year. Programming modifications to the
Registration and Titling system in fiscal year 2000 was estimated to be
$315,540. TxDot estimated one FTE would be needed in fiscal year 2000 and
an additional 4 FTEs thereafter would be needed to oversee the
outsourcing of the program starting in fiscal year 2001. TxDot assumed a
revenue loss to State Highway Fund 006 due to the denial/delay of
registration issuance because of suspensions placed on motor vehicles.
This would be offset by TxDot being able to recoup costs associated with
administering the program. Any additional revenue above costs would be
deposited to the General Revenue Fund.
The Department of Public Safety (DPS) estimated that, pursuant to
provisions of the bill that reduces the authority of the DPS to suspend
a driver's license or motor vehicle registration due to violation of
financial responsibility, the DPS would need 12 fewer FTEs to process
the suspensions. The department estimated that there would be a savings
to the State Highway Fund 006 of $324,832 in fiscal year 2000 and
$326,596 thereafter. In addition, the department estimated that there
would be a loss to general revenue of approximately $1.5 million per
fiscal year starting in 2000 from the reduction in reinstatement fees.
Local Government Impact
The Texas Department of Transportation estimated counties could
experience a revenue loss due to the delay/denial of registration
issuance.
Source Agencies: 454 Department of Insurance, 405 Department of
Public Safety
LBB Staff: JK, TH, ML