Honorable Eddie Lucio III, Chair, House Committee on Insurance
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
HB196 by Stephenson (relating to allowing justice and municipal courts to access the financial responsibility verification program.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB196, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2021.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2020
$0
2021
$0
2022
$0
2023
$0
2024
$0
Fiscal Year
Probable Revenue (Loss) from State Highway Fund 6
Probable Revenue Gain from TexasSure Fund 161
Probable (Cost) from TexasSure Fund 161
2020
($409,175)
$409,175
($409,175)
2021
($228,800)
$228,800
($228,800)
2022
($228,800)
$228,800
($228,800)
2023
($228,800)
$228,800
($228,800)
2024
($228,800)
$228,800
($228,800)
Fiscal Analysis
The bill would amend the Transportation Code relating to allowing justice and municipal courts to access the financial responsibility verification program. The bill would allow justice and municipal courts to access the TexasSure Motor Vehicle Financial Responsibility Verification system to verify financial responsibility for the purpose of court proceedings.
The bill would take effect immediately upon receiving a vote of two-thirds of all members elected to the House and Senate or otherwise on September 1, 2019.
Methodology
Based on information provided by the Texas Department of Insurance (TDI), the agency estimates a cost of $409,175 in fiscal year 2020 and ongoing costs of $228,800 each fiscal year thereafter from the TexasSure Fund No. 161. It is estimated that development costs would require $375,075 for labor and $34,100 for hardware in fiscal year 2020 to enable courts to access the system. Additional costs each year thereafter are for help desk support.
Transportation Code, Section 502.357(b) directs that certain fees collected at the time of motor vehicle registration are deposited to the TexasSure Fund No. 161 in an amount equal to cover the amount appropriated to TDI from the TexasSure Fund No. 161 for the vendor contract. Fees otherwise would be deposited to the credit of the State Highway Fund 6. Therefore, any increase in appropriations to the TexasSure Fund No. 161 would result in an equivalent increase in revenue to the TexasSure Fund No. 161 and an equivalent decrease in revenue to the State Highway Fund 6.
Based on information provided by the Office of Court Administration, it is assumed that the duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
Technology
This analysis estimates a one-time technology cost of $34,100 in fiscal year 2020 related to the hardware required to implement the provisions of the bill.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
454 Department of Insurance, 212 Office of Court Administration, Texas Judicial Council, 313 Department of Information Resources, 608 Department of Motor Vehicles