LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 26, 2001 TO: Honorable Bill Ratliff, Lieutenant Governor Honorable James E. "Pete" Laney, Speaker of the House FROM: John Keel, Director, Legislative Budget Board IN RE: HB1831 by Pickett (relating to the power of the Texas Department of Transportation to contract and to issue certain license plates.), Conference Committee Report ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** The bill would amend the Transportation Code to allow the Texas Department of Transportation (TxDOT) to enter into an interlocal contract with one or more local governments in accordance with Chapter 791, Government Code. The bill would require TxDOT to adopt policies and procedures consistent with applicable state procurement practices for soliciting and awarding the contracts. The bill would amend the Transportation Code to require an annual registration fee of $30 in addition to any other registration fees for special license plates honoring the Young Men's Christian Association (YMCA). The bill would also amend the Education Code to create a new dedicated account in the General Revenue Fund. The bill would require that $8 from each fee collected be deposited in the State Highway Fund to defray the costs of providing the plates and that all remaining proceeds be deposited in the new dedicated account. The bill would also require that funds in the new dedicated account could only be appropriated to the Texas Education Agency for the purposes of making grants to benefit the youth and government programs sponsored by the YMCA located in Texas. The bill would amend the Transportation Code to require TxDOT to issue specially designed license plates that include the words "Texans Conquer Cancer" and would require an annual registration fee of $30 in addition to any other registration fees for the plates. The bill would also amend the Health and Safety Code to create a new dedicated account in the General Revenue Fund. The bill would require that $5 from each fee collected be deposited in the State Highway Fund to defray the costs of providing the plates and that all remaining proceeds be deposited in the new dedicated account. The bill would also require that funds in the new dedicated account would be administered by the Texas Cancer Council; that the Council would establish guidelines for spending money credited to the account; and the bill would establish an advisory committee to assist the Council in establishing guidelines. No significant fiscal implication to the State is anticipated for the interlocal contract provision because any savings realized from implementing the provisions of the bill would be used to fund other transportation related projects. In addition, no significant fiscal implication to the State is anticipated for the license plate issuances provided by the bill due to the estimated number of issuances for the YMCA and "Texans Conquer Cancer" specialty license plates. The bill would take effect immediately upon receiving two-thirds majority vote in both houses; otherwise, the bill would take effect September 1, 2001. Local Government Impact The bill would allow TxDOT to contract with local units of government. It is estimated that the bill would allow units of local government to realize significant revenue increases through project and service contracts and significant cost savings from a reduction in legal counsel activity. Source Agencies: LBB Staff: JK, RB, MW