LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 4, 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.), Committee
Report 2nd House, Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB391, Committee Report 2nd House, Substituted: 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 New General Revenue New General Revenue Dedicated - *
* Dedicated - Automated Austomated Inspection System *
* Inspection System Account Account *
* 2002 $9,637,622 $(9,637,622) *
* 2003 9,926,750 (9,926,750) *
* 2004 10,224,553 (10,224,553) *
* 2005 10,531,289 (10,531,289) *
* 2006 10,847,228 (10,847,228) *
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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 excluding the contract programming would total $607,842 in
fiscal year 2002 and $305,114 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 $1.00
per inspection to implement the program in "affected counties" specified
by the bill.
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 9,348,493 inspection certificates sold by DPS to
inspection stations in "affected counties" 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
$1.00 per certificate that would be authorized by the bill, would
generate $9,637,622 in fiscal year 2002 growing to $10,847,228 by fiscal
year 2006.
DPS estimates that the start-up costs including hardware, software and
programming would be $833,322 in fiscal year 2002. Ongoing technology
costs would be $305,114 during fiscal year 2003 and each fiscal 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 $0.91 per certificate or $8,770,236 in fiscal
year 2002 growing to $0.97 per certificate or $10,521,811 by fiscal year
2006. 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 significant 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, DG