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