LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

May 8, 2003

TO:	Honorable Frank Madla, Chair, Senate Committee on Intergovernmental Relations
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	HB215 by Hamric (Relating to the regulation of fireworks by certain counties; providing a criminal penalty.), As Engrossed

Estimated Two-year Net Impact to General Revenue Related Funds for HB215, As Engrossed: a negative impact of ($282,000) through the biennium ending August 31, 2005.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2004	($141,000)
2005	($141,000)
2006	($141,000)
2007	($141,000)
2008	($141,000)

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1	Probable Revenue Gain/(Loss) from RURAL VOLUNTEER FIRE DEPT INS 5066
2004	($141,000)	($45,000)
2005	($141,000)	($45,000)
2006	($141,000)	($45,000)
2007	($141,000)	($45,000)
2008	($141,000)	($45,000)

Fiscal Analysis

If the Harris County Commissioners Court were to prohibit the sale of fireworks in any part of the unincorporated area of Harris County, GR Account 5066—Rural Volunteer Fire Department Insurance—could lose $45,000 annually in state fireworks tax revenue, and the General Revenue Fund 0001 could lose $141,000 in state sales tax revenue.

Methodology

These illustrative examples of state revenue losses assume that one-half of existing fireworks sales would continue through purchases in surrounding counties.

Local Government Impact

The Houston Metropolitan Transit Authority could lose approximately $40,000 in local sales tax revenue per year.

The Harris County Budget Office indicates that the loss of tax revenue to the county would be less than 1 percent of the county's general fund and that the loss would be offset by an estimated $200,000 in savings in administrative costs.

No significant fiscal impact to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts, 454 Department of Insurance

LBB Staff:

JK, DLBa, JO, WP, SM