LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION May 30, 2009 TO: Honorable David Dewhurst , Lieutenant Governor, Senate Honorable Joe Straus, Speaker of the House, House of Representatives FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB2571 by Gonzales (Relating to the licensing and regulation of towing companies and vehicle storage facilities; providing penalties. ), Conference Committee Report Estimated Two-year Net Impact to General Revenue Related Funds for HB2571, Conference Committee Report: an impact of $0 through the biennium ending August 31, 2011. 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 2010 $0 2011 $0 2012 $0 2013 $0 2014 $0 All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2010 $0 $0 2011 ($100,000) $100,000 2012 ($60,000) $60,000 2013 ($60,000) $60,000 2014 ($60,000) $60,000 Fiscal Analysis The bill would amend Chapter 2308 of the Occupations Code regarding the licensing and regulation of towing companies and vehicle storage facilities. The bill would require the Texas Department of Licensing and Regulation (TDLR) to adopt rules for denial of an application for a tow truck permit or towing operator or company license. The bill would require the Texas Commission of Licensing and Regulation to adopt rules to set fees that could be charged for private towing, the maximum amount for other fees associated with private towing, and the maximum fees for certain types of motor vehicles. The bill also would require TDLR to contract out a study to examine existing private property towing fee studies conducted by municipalities in Texas and to analyze private property towing cost of services by company, consumer price index, geographic area, and individual cost components in order to adopt appropriate fee rates. The bill would direct TDLR to suspend a license issued under this chapter's provisions for failure to pay within 60 days a final judgment awarded to an owner or operator of a motor vehicle. The bill would establish a criminal penalty for violations of this chapter's provisions. The bill would take effect September 1, 2009. The requirement to establish rules on fees and to contract for a study as amended in Section 2308.575, Occupations Code, would take effect September 1, 2010. Methodology TDLR indicates that the cost of contracting out the required study on private property towing fees would be $100,000 in the fiscal year 2011, and $60,000 each subsequent year to update the study. This analysis assumes that any increased costs to the agency, which is statutorily required to generate sufficient revenue to cover its costs of operation, would be offset by an increase in fee generated revenue. Based on the analysis of the Comptroller of Public Accounts, it is assumed that duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
May 30, 2009
TO: Honorable David Dewhurst , Lieutenant Governor, Senate Honorable Joe Straus, Speaker of the House, House of Representatives FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:HB2571 by Gonzales (Relating to the licensing and regulation of towing companies and vehicle storage facilities; providing penalties. ), Conference Committee Report
TO: Honorable David Dewhurst , Lieutenant Governor, Senate Honorable Joe Straus, Speaker of the House, House of Representatives
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: HB2571 by Gonzales (Relating to the licensing and regulation of towing companies and vehicle storage facilities; providing penalties. ), Conference Committee Report
Honorable David Dewhurst , Lieutenant Governor, Senate Honorable Joe Straus, Speaker of the House, House of Representatives
Honorable David Dewhurst , Lieutenant Governor, Senate Honorable Joe Straus, Speaker of the House, House of Representatives
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
HB2571 by Gonzales (Relating to the licensing and regulation of towing companies and vehicle storage facilities; providing penalties. ), Conference Committee Report
HB2571 by Gonzales (Relating to the licensing and regulation of towing companies and vehicle storage facilities; providing penalties. ), Conference Committee Report
Estimated Two-year Net Impact to General Revenue Related Funds for HB2571, Conference Committee Report: an impact of $0 through the biennium ending August 31, 2011.
Estimated Two-year Net Impact to General Revenue Related Funds for HB2571, Conference Committee Report: an impact of $0 through the biennium ending August 31, 2011.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
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 2010 $0 2011 $0 2012 $0 2013 $0 2014 $0
2010 $0
2011 $0
2012 $0
2013 $0
2014 $0
All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2010 $0 $0 2011 ($100,000) $100,000 2012 ($60,000) $60,000 2013 ($60,000) $60,000 2014 ($60,000) $60,000
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2010 $0 $0 2011 ($100,000) $100,000 2012 ($60,000) $60,000 2013 ($60,000) $60,000 2014 ($60,000) $60,000
2010 $0 $0
2011 ($100,000) $100,000
2012 ($60,000) $60,000
2013 ($60,000) $60,000
2014 ($60,000) $60,000
Fiscal Analysis
The bill would amend Chapter 2308 of the Occupations Code regarding the licensing and regulation of towing companies and vehicle storage facilities. The bill would require the Texas Department of Licensing and Regulation (TDLR) to adopt rules for denial of an application for a tow truck permit or towing operator or company license. The bill would require the Texas Commission of Licensing and Regulation to adopt rules to set fees that could be charged for private towing, the maximum amount for other fees associated with private towing, and the maximum fees for certain types of motor vehicles. The bill also would require TDLR to contract out a study to examine existing private property towing fee studies conducted by municipalities in Texas and to analyze private property towing cost of services by company, consumer price index, geographic area, and individual cost components in order to adopt appropriate fee rates. The bill would direct TDLR to suspend a license issued under this chapter's provisions for failure to pay within 60 days a final judgment awarded to an owner or operator of a motor vehicle. The bill would establish a criminal penalty for violations of this chapter's provisions. The bill would take effect September 1, 2009. The requirement to establish rules on fees and to contract for a study as amended in Section 2308.575, Occupations Code, would take effect September 1, 2010.
The bill would amend Chapter 2308 of the Occupations Code regarding the licensing and regulation of towing companies and vehicle storage facilities. The bill would require the Texas Department of Licensing and Regulation (TDLR) to adopt rules for denial of an application for a tow truck permit or towing operator or company license.
The bill would require the Texas Commission of Licensing and Regulation to adopt rules to set fees that could be charged for private towing, the maximum amount for other fees associated with private towing, and the maximum fees for certain types of motor vehicles. The bill also would require TDLR to contract out a study to examine existing private property towing fee studies conducted by municipalities in Texas and to analyze private property towing cost of services by company, consumer price index, geographic area, and individual cost components in order to adopt appropriate fee rates.
The bill would direct TDLR to suspend a license issued under this chapter's provisions for failure to pay within 60 days a final judgment awarded to an owner or operator of a motor vehicle. The bill would establish a criminal penalty for violations of this chapter's provisions.
The bill would take effect September 1, 2009. The requirement to establish rules on fees and to contract for a study as amended in Section 2308.575, Occupations Code, would take effect September 1, 2010.
Methodology
TDLR indicates that the cost of contracting out the required study on private property towing fees would be $100,000 in the fiscal year 2011, and $60,000 each subsequent year to update the study. This analysis assumes that any increased costs to the agency, which is statutorily required to generate sufficient revenue to cover its costs of operation, would be offset by an increase in fee generated revenue. Based on the analysis of the Comptroller of Public Accounts, it is assumed that duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
TDLR indicates that the cost of contracting out the required study on private property towing fees would be $100,000 in the fiscal year 2011, and $60,000 each subsequent year to update the study. This analysis assumes that any increased costs to the agency, which is statutorily required to generate sufficient revenue to cover its costs of operation, would be offset by an increase in fee generated revenue.
Based on the analysis of the Comptroller of Public Accounts, it is assumed that duties and responsibilities associated with implementing the provisions of the bill could be accomplished by utilizing existing resources.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 452 Department of Licensing and Regulation, 304 Comptroller of Public Accounts
452 Department of Licensing and Regulation, 304 Comptroller of Public Accounts
LBB Staff: JOB, ES, MN, MW, KJG
JOB, ES, MN, MW, KJG