LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 23, 2001
  
  
          TO:  Honorable Florence Shapiro, Chair, Senate Committee on
               State Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1240  by Moncrief (Relating to the construction of
               facilities and trails for bicycles and electric bicycles
               and to the safe operation of bicycles and electric
               bicycles.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB1240, As Introduced:  negative impact of $(28,447,721) 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                        $(13,929,543)  *
          *       2003                         (14,518,178)  *
          *       2004                         (15,174,178)  *
          *       2005                         (15,856,178)  *
          *       2006                         (16,556,178)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***********************************************************************
*Fiscal    Probable    Probable    Probable    Probable   Change in    *
* Year     Revenue     Revenue     Revenue     Savings/   Number of    *
*        Gain/(Loss) Gain/(Loss) Gain/(Loss) (Cost) from    State      *
*            from      from New    from New  New General  Employees    *
*          General     General     General     Revenue   from FY 2001  *
*          Revenue     Revenue     Revenue   Dedicated -               *
*            Fund    Dedicated - Dedicated - Texas Parks               *
*            0001    Texas Parks Bicycle and     and                   *
*                        and      Pedestrian   Wildlife                *
*                      Wildlife   Facilities    Trails                 *
*                       Trails                                         *
*  2002                $6,895,000  $6,895,000                     2.0  *
*           $(13,790,                        $(6,895,000)              *
*                000)                                                  *
*  2003                 7,203,000   7,203,000 (7,203,000)         2.0  *
*        (14,406,000)                                                  *
*  2004                 7,531,000   7,531,000 (7,531,000)         2.0  *
*        (15,062,000)                                                  *
*  2005                 7,872,000   7,872,000 (7,872,000)         2.0  *
*        (15,744,000)                                                  *
*  2006                 8,222,000   8,222,000 (8,222,000)         2.0  *
*        (16,444,000)                                                  *
***********************************************************************
  
         *****************************************************
         * Fiscal Year      Probable Savings/(Cost) from      *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2002                               $(139,543) *
         *      2003                                (112,178) *
         *      2004                                (112,178) *
         *      2005                                (112,178) *
         *      2006                                (112,178) *
         *****************************************************
  
Fiscal Analysis
  
The bill would create two new accounts in General Revenue:  GR Account -
Texas Parks and Wildlife Trails, and GR Account - Bicycle and Pedestrian
Facilities.  Funds appropriated out of the Texas Parks and Wildlife
Trails Account could only be appropriated for multi-use trails and
bicycle facilities.  Funds appropriated out of the Bicycle and Pedestrian
Facilities Account could only be appropriated for construction of
bicycle and pedestrian facilities.  Bicycles and other non-motorized
transportation would be excluded from the definition of "sporting goods"
as that term relates to the "sporting goods" sales tax revenue allocation
to the Parks and Wildlife Department (TPWD).  Half of this revenue would
be allocated to the Texas Parks and Wildlife Trails and the other half
to the Bicycle and Pedestrian Facilities Account.

The Texas Department of Transportation (TxDOT) would be required to
establish and administer a Safe Routes to School Program that distributes
federal grants available under the federal Hazard Elimination Program to
local political jurisdictions to improve safety in and around school
areas. The funds deposited to the Bicycle and Pedestrian Facilities
Account would also be distributed by TxDOT, but only to provide grants
for the construction of bicycle and pedestrian facilities.  The
Department of Public Safety (DPS) would be required to determine that all
school districts located in a county or municipality and the county or
municipality have met certain requirements in order to adopt a bicycle
ordinance that contains civil fines.

The bill would take effect September 1, 2001.
  
  
Methodology
  
It is assumed that any additional costs associated with administering
these grant programs would be absorbed by TxDOT and TPWD, which has an
existing, similar grant program. DPS estimates that implementing
provisions of this bill would require two additional personnel to ensure
that the school districts, cities, and counties, meet the prerequisites
for creating a county or municipal bicycle ordinance.  The salaries of
these additional personnel would amount to $61,344 each fiscal year with
associated benefits amounting to $17,348 each fiscal year.  Other
expenses related to the program would cost $60,851 in the first year of
operation and $33,486 in subsequent years.

Additionally, it is assumed that all revenues allocated to the Texas
Parks and Wildlife Trails Account and the Bicycle and Pedestrian
Facilities Account would be expended in the same year they are received
on grants and administrative costs.

The proposed bill impacts the amount of "sporting goods" sales tax
revenue allocated to TPWD for the state parks system, local park and
indoor recreation grants, and acquisition, construction, development and
improvement of park land and facilities.  However, because the state
sales tax on sporting goods considerably exceeds the annual sporting
goods sales tax allocation to the Parks and Wildlife Department, the
removal of bicycles and non-motorized items from the definition of
"sporting goods" should not cause a reduction in the existing annual $32
million transfer.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   601   Texas Department of Transportation, 405   Texas
                   Department of Public Safety, 802   Texas Parks and
                   Wildlife Department, 304   Comptroller of Public
                   Accounts
LBB Staff:         JK, RB, DG