LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
April 19, 2001
TO: Honorable Bob Turner, Chair, House Committee on Public
Safety
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB391 by Wentworth (Relating to the automation of the
compulsory motor vehicle inspection system.), As Engrossed
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB391, As Engrossed: positive impact of $0 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 $0 *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Revenue Gain/(Loss) Probable Savings/(Cost) from *
* Year from General Revenue Fund General Revenue Fund *
* 0001 0001 *
* 2002 $18,091,713 $(18,091,713) *
* 2003 18,634,465 (18,634,465) *
* 2004 19,193,499 (19,193,499) *
* 2005 19,769,304 (19,769,304) *
* 2006 12,565,755 (12,565,755) *
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Technology Impact
The Department of Public Safety (DPS) estimates that implementing the
bill would require 1,879 hours of contract programming at $120/hour for a
total cost of $225,480. DPS estimates that hardware, software and
related costs would total $1,023,183 in fiscal year 2002 and $589,825 in
subsequent years.
Fiscal Analysis
The bill would require the automation of the compulsory motor vehicle
inspection program and would authorize DPS to charge an additional $1.25
per inspection to implement the program. This fee would decrease to
$0.75 on September 1, 2005.
The newly authorized fee would be deposited to the credit of a
newly-created automated inspection system account, in the General Revenue
Fund. The money in the account could be appropriated only to DPS for
the development, implementation, and administration of the automated
compulsory motor vehicle inspection system.
The bill would take effect on September 1, 2001.
Methodology
In FY 2000, there were 13,642,540 inspection certificates sold by DPS to
inspection stations in Texas. Over the past three years, the growth in
the sale of inspection certificates has averaged 3 percent annually.
Assuming this growth rate continues, the additional $1.25 per certificate
that would be authorized by the bill, would generate $18,091,713 in
fiscal year 2002. In fiscal year 2005, the revenue generated would
decrease to $12,565,755 as a result of the reduction in the fee that DPS
would be authorized to charge.
DPS estimates that the start-up costs including hardware, software and
programming would be $1,248,663 in fiscal year 2002 and $589,825 each
year thereafter.
DPS would contract with a vendor to transmit and capture the data for the
automated system. DPS estimates that the vendor charge for this service
would be approximately $1.16 per certificate or $16,789,110 in fiscal
year 2002. While DPS estimates that the number of inspection
certificates would increase in future fiscal years, the agency estimates
that costs could be kept within available revenue when the fee changes in
fiscal year 2006. The agency believes that advances in technology as
well as inspection stations assuming the costs of the equipment in the
individual stations will allow the program to be supported within
available revenue. In each fiscal year, the combined costs of the
vendor and the computer maintenance and replacement would be expected to
approximately equal the revenue generated.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 405 Texas Department of Public Safety, 304
Comptroller of Public Accounts
LBB Staff: JK, JC, RB, JN, DG