LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

May 6, 2003

TO:	Honorable Steve Ogden, Chair, Senate Committee on Infrastructure Development and Security
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	SB978 by Wentworth (Relating to the automation of the compulsory motor vehicle inspection system.), Committee Report 1st House, Substituted

Estimated Two-year Net Impact to General Revenue Related Funds for SB978, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2005.

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
2004	$0
2005	$0
2006	$0
2007	$0
2008	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain from New General Revenue Dedicated - AUTOMATED INSPECTION ACCOUNT	Probable Revenue (Loss) from New General Revenue Dedicated - AUTOMATED INSPECTION ACCOUNT
2004	$11,235,164	($11,082,453)
2005	$11,516,043	($11,516,043)
2006	$11,803,944	($11,803,944)
2007	$12,099,043	($12,099,043)
2008	$12,401,519	($12,401,519)

Fiscal Analysis

The bill would amend the Transportation Code by requiring the Department of Public Safety (DPS) to automate the compulsory motor vehicle inspection system.  Additionally, the bill would provide DPS the authority to impose a fee of $0.75 for each safety inspection certificate sold to an inspection station.  The new fees would be deposited to a newly created General Revenue Dedicated account for the development, testing, implementation, and administration of the automated inspection system.  Because the bill would create dedicated accounts in the General Revenue Fund, the accounts included in the bill would be subject to funds consolidation review by the current Legislature. 

Methodology

In fiscal year 2002, the Department of Public Safety sold 14,189,172 inspection certificates.  Based upon a projected growth rate of three percent in fiscal year 2003 and 2.5 percent each year thereafter, the additional $0.75 per certificate authorized by the bill would generate $11,235,164 in fiscal year 2004, $11,516,043 in fiscal year 2005, $11,803,944 in fiscal year 2006, $12,099,043 in fiscal year 2007 and $12,401,519 in fiscal year 2008.

DPS estimates that start-up costs including hardware, software, and programming will be $596,300 in fiscal year 2004 and a cost of $0.05 per record each year for database, hardware, and software maintenance.  DPS anticipates contracting with a vendor to transmit and capture the data for the automated system at a cost of approximately $0.70 per certificate or $10,486,153 in fiscal year 2004.

Technology

The Department of Public Safety estimates that implementing the bill would require additional hardware, software, and related costs will total $596,300 in FY 2004.

Local Government Impact

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

Source Agencies:

405 Department of Public Safety, 304 Comptroller of Public Accounts

LBB Staff:

JK, RR, VDS, AR