LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

April 27, 2009

TO:	Honorable Frank Corte Jr., Chair, House Committee on Defense & Veterans' Affairs
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB1940 by Van de Putte (Relating to the fund for veterans' assistance.), As Engrossed

Depending upon the number of persons making a contribution to the Veterans' Assistance Fund, there would be an indeterminate amount of revenue to the state.

Although the bill would not make an appropriation, it would establish the basis for an appropriation.

The bill would amend Chapter 502, Transportation Code, to allow a person who registers a motor vehicle under the chapter to make a voluntary contribution in any amount to the fund for veterans' assistance established by Section 434.017, Government Code. The county tax assessor-collector would be required to send any contribution to the Comptroller of Public Accounts for deposit in the state treasury to the credit of the Veterans' Assistance Fund.

The bill would amend the Government Code to allow state employees to authorize a deduction for contributions to the fund as a charitable contribution, and the Texas Veterans Commission may use the contributions for enhancing or improving veterans' assistance programs and to make grants to local communities to address veterans' needs.

It is unknown how many persons would make a contribution at the time of registering their motor vehicle, or in what amount, and it is unknown how many state employees would make a contribution or in what amount; therefore, the amount of revenue generated for deposit to the Veterans' Assistance Fund cannot be determined. If the amount were to become significant, the Veterans Commission assumes additional staff would be required to administer and track grants to local communities.

This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in the bill would be subject to funds consolidation review by the current legislature.

The bill would take effect September 1, 2009.

Local Government Impact

Local government entities would incur administrative costs in handling contributions, but no significant fiscal implications are anticipated.

Source Agencies:

403 Veterans Commission, 304 Comptroller of Public Accounts

LBB Staff:

JOB, KK, JM, SD, DB