LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

March 19, 2007

TO:	Honorable Mike Krusee, Chair, House Committee on Transportation
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	HB616 by Quintanilla (Relating to specialty license plates benefiting public schools in certain counties.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for HB616, As Introduced: a positive impact of $88,000 through the biennium ending August 31, 2009.

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
2008	$44,000
2009	$44,000
2010	$44,000
2011	$44,000
2012	$44,000

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain from GENERAL REVENUE FUND (for distribution to school districts) 1	Probable Revenue Gain from STATE HIGHWAY FUND 6
2008	$44,000	$15,000
2009	$44,000	$15,000
2010	$44,000	$15,000
2011	$44,000	$15,000
2012	$44,000	$15,000

Fiscal Analysis

The bill would amend the Transportation Code to require the Texas Department of Transportation (TxDOT) to design and issue new specialty license plates in consultation with applicable counties. The bill specifies that fees from the plates remaining after the deduction of TxDOT's administrative expenses would be sent to the Texas Education Agency (TEA) for distribution to the school districts in the county designated on the license plates, based on the average daily attendance of the school districts as determined under Chapter 42 of the Education Code.

The bill would take effect immediately upon receiving a vote of two-thirds of all members elected to each house or otherwise on September 1, 2007

Methodology

Based on the analysis of TxDOT, it is assumed approximately 2,000 sets of the new specialty plates would be issued for a fee of $30, each: $0.50 of the fee would be retained by the counties; $7.50 deposited to the State Highway Fund for the recovery of TxDOT's administrative costs; and $22 would be deposited to the credit of TEA (General Revenue Fund) for distribution to the appropriate school districts. It is assumed any costs associated with the implementation, manufacturing, and issuance of plates by TxDOT could be absorbed within existing resources.

Based on the analysis of TEA, it is assumed any costs or duties associated with the distribution of plate proceeds to the appropriate school districts could be absorbed within existing resources.

Based on information provided by the Comptroller of Public Accounts, the bill would create a dedicated revenue source. Legislative policy, implemented as Government Code § 403.094, consolidated special funds (except those affected by constitutional, federal, or other restrictions) into the General Revenue Fund as of August 31, 1993, and eliminated all applicable statutory revenue dedications as of August 31, 1995. Each subsequent Legislature has reviewed bills that affect funds consolidation. The revenue dedication included in this bill would be subject to funds consolidation review by the Eightieth Legislature.

Local Government Impact

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

Source Agencies:

304 Comptroller of Public Accounts, 601 Department of Transportation, 701 Central Education Agency

LBB Staff:

JOB, KJG, MW, TG