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
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* 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. *
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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:
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*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 *
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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