LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 16, 2001 TO: Honorable Clyde Alexander, Chair, House Committee on Transportation FROM: John Keel, Director, Legislative Budget Board IN RE: HB2203 by Gutierrez (Relating to the construction of facilities and trails for bicycles, electric bicycles, and pedestrians and to the safe operation of bicycles and electric bicycles.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2203, Committee Report 1st House, Substituted: positive impact * * of $114,000 through the biennium ending August 31, 2003. * * * * 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 * * 2002 $53,000 * * 2003 61,000 * * 2004 63,000 * * 2005 66,000 * * 2006 69,000 * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Probable Probable Change in * * Year Revenue Revenue Savings/(Cost) Number of State * * Gain/(Loss) Gain/(Loss) from General Employees from * * from General from General Revenue FY 2001 * * Revenue Fund Revenue Dedicated * * 0001 Dedicated Account- Texas * * Account- Texas Parks and * * Parks and Wildlife Trails * * Wildlife Trails * * 2002 $53,000 $5,268,000 $(5,268,000) 0.0 * * 2003 61,000 6,004,000 (6,004,000) 0.0 * * 2004 63,000 6,276,000 (6,276,000) 0.0 * * 2005 66,000 6,561,000 (6,561,000) 0.0 * * 2006 69,000 6,852,000 (6,852,000) 0.0 * *************************************************************************** Fiscal Analysis The proposed substitute authorizes the governing body of a municipality and the commissioners court of a county to require children younger than 16 to wear a bicycle helmet when operating a bicycle. An order or ordinance could only be issued if the Department of Public Safety (DPS) determines that all school districts located in the municipality or county had adopted a bicycle safety education program for elementary schools, and that the municipality or county had provided bicycle helmets to children from low-income families or had worked with a civic or other organization to do so. Children in violation of the ordinance or order would be liable for a civil penalty not to exceed $20, which would be waived for a first offense within a 12-month period if the child acquired a helmet. The substitute creates the Supplemental Bicycle and Pedestrian Facilities fee. A merchant who sold a bicycle or nonmotorized mode of transportation for $50 or more would have to collect a fee of $5. The merchant would remit the fee to the Comptroller for deposit to the newly-created General Revenue-Dedicated Account, Texas Parks and Wildlife Trails. The account would consist of the proceeds from the new fee. Revenue in the account could be appropriated only for multi-use trails and bicycle facility projects approved by the Texas Parks and Wildlife Commission. The Comptroller would enforce the fee in the same manner as the state limited sales and use tax and is authorized to retain $0.05 of each fee received to cover administrative costs. The substitute amends the Transportation Code to establish a Safe Routes to School Program to distribute federal grants under the Hazard Elimination Program for projects to improve safety in and around school areas. This bill would become effective September 1, 2001. Methodology According to the Comptroller's Office, this new fee would generate an average of $6,254,600 per fiscal year between fiscal years 2002 and 2006. Data on the average price and the total sales of bicycles and non-motorized modes of transportation were gathered from the National Sporting Goods Association and the U. S. Census Bureau. Sales were divided by average price and adjusted for the $50 threshold to determine the number of units sold that would be subject to the new fee. Five cents ($0.05) of each fee collected was assumed to be deposited to General Revenue as reimbursement for Comptroller administrative costs. Although the Parks and Wildlife Department, TxDOT and the Comptroller each indicated that implementation of this legislation would cause increases in operating costs and possibly additional staffing, these costs were not significant. The three impacted agencies have sufficient flexibility to absorb these costs within existing agency resources. Local Government Impact No significant fiscal implication to units of local government is anticipated. Local political jurisdictions, including school districts, would be eligible to receive federal grants for safety improvement projects in and around school areas, and funds to construct multi-use trails and bicycle facilities. However, localities that choose to implement a bicycle helmet ordinance for children younger than 16 may incur additional costs related to enforcement of the ordinance. These costs could be partially offset by the $20 penalty fee this bill authorizes localities with ordinances to charge children that violate the ordinance. Source Agencies: 802 Texas Parks and Wildlife Department, 601 Texas Department of Transportation, 405 Texas Department of Public Safety, 304 Comptroller of Public Accounts LBB Staff: JK, JO, MF, ZS