Honorable John T. Smithee, Chair, House Committee on Insurance
John Keel, Director, Legislative Budget Board
HB814 by Gutierrez (Relating to requirements regarding motor vehicle insurance and motor vehicle insurance verification; providing penalties.), As Introduced
|Fiscal Year||Probable Net Positive/(Negative) Impact to General Revenue Related Funds|
|Fiscal Year||Probable (Cost) fromSTATE HIGHWAY FUND
|Probable Revenue Gain fromSTATE HIGHWAY FUND
|Change in Number of State Employees from FY 2003|
The bill would assess an additional $1.00 fee at the time of initial application or renewal of registration for "non-exempt vehicles," or vehicles that are required to present proof of financial responsibility. The collected fees would be deposited to the State Highway Fund (Fund 006).
Based on current registration data, the Department of Transportation estimates that approximately 88% of the total vehicle registration population are required to present proof of financial responsibility at the time of registration and, therefore, would be subject to payment of the fee. The agency estimates 19,735,983 vehicle registrations in FY 2004. Multiplying by 88% and the $1.00 fee equals $17,367,665 in revenue. The agency adjusted the vehicle registration population approximately 2% each year to estimate revenue through FY 2008.
The Department of Transportation estimates costs related to programming modifications, random sampling, and distribution of verification notices at $452,335 in FY 2004 and $584,420 per year for FY 2005-FY 2008. The Department of Public Safety estimates costs to establish the new database for the motor vehicle insurance verification program at $2,380,509 in FY 2004. Costs to maintain the system are estimated at $239,592 per year for FY 2005-FY 2008.
304 Comptroller of Public Accounts, 405 Department of Public Safety, 454 Department of Insurance, 601 Department of Transportation
JK, JO, JRO, VDS, AR