LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 14, 2009 TO: Honorable John Carona, Chair, Senate Committee on Transportation & Homeland Security FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB2153 by Whitmire (Relating to booting of vehicles by private entities in parking facilities; providing penalties.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB2153, As Introduced: 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 Change in Number of State Employees from FY 2009 2010 ($323,121) $323,121 5.0 2011 ($282,621) $282,621 5.0 2012 ($282,621) $282,621 5.0 2013 ($282,621) $282,621 5.0 2014 ($282,621) $282,621 5.0 Fiscal Analysis The bill would amend the Occupations Code to incorporate boot operators and booting companies into the licensing and regulation of towing operators and storage facilities governed by the Texas Department of Licensing and Regulation (TDLR). The bill would establish a license requirement for boot operators and booting companies. The bill would establish the Towing, Storage, and Booting Advisory Board, and increase the membership by one. The bill would establish the terms for regulation of booting operators and companies, including the right of an owner or operator of a vehicle to a hearing for a violation of rules by a boot operator or company.The bill would require the presiding officer of the Texas Commission of Licensing and Regulation to appoint to the Towing, Storage, and Booting Advisory Board one representative of a booting company promptly after the bill takes effect. The bill would take effect September 1, 2009. Methodology Based on the analysis of TDLR, while current numbers of private registered booting companies are limited, towing companies currently licensed with TDLR would apply for the new booting license and increase the number of companies. As such, TDLR estimates 25 percent of towing companies currently licensed with TDLR would apply for the booting license, totalling 975 companies. TDLR estimates 2,750 booting operators would apply for the license. Based on these estimates and the history of booting and towing complaints, TDLR anticipates receiving 1,825 complaints per year, resulting in 200 hearings annually. TDLR anticipates needing an additional 5.0 full-time-equivalent positions (FTEs) to license and regulate the booting companies and operators: 1.0 administrative assistant in licensing, 1.0 customer service representative, 1.0 legal assistant for intake, 0.5 administrative assistant for complaint intake, 0.5 investigator for complaint intake, 0.5 attorney for prosecutions, and 0.5 legal assistant for prosecutions. Other costs included in the total estimates include fees for DPS criminal history background checks, plastic licenses, and TexasOnline fees. Additional costs cover equipment expenditures and rent for TDLR's office space outside of state owned facilities. This analysis assumes that any increased costs to the agency, which is statutorily required to generate revenue sufficient to cover its cost of operation, would be offset by an increase in fee generated revenue.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
April 14, 2009
TO: Honorable John Carona, Chair, Senate Committee on Transportation & Homeland Security FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB2153 by Whitmire (Relating to booting of vehicles by private entities in parking facilities; providing penalties.), As Introduced
TO: Honorable John Carona, Chair, Senate Committee on Transportation & Homeland Security
FROM: John S. O'Brien, Director, Legislative Budget Board
IN RE: SB2153 by Whitmire (Relating to booting of vehicles by private entities in parking facilities; providing penalties.), As Introduced
Honorable John Carona, Chair, Senate Committee on Transportation & Homeland Security
Honorable John Carona, Chair, Senate Committee on Transportation & Homeland Security
John S. O'Brien, Director, Legislative Budget Board
John S. O'Brien, Director, Legislative Budget Board
SB2153 by Whitmire (Relating to booting of vehicles by private entities in parking facilities; providing penalties.), As Introduced
SB2153 by Whitmire (Relating to booting of vehicles by private entities in parking facilities; providing penalties.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB2153, As Introduced: an impact of $0 through the biennium ending August 31, 2011.
Estimated Two-year Net Impact to General Revenue Related Funds for SB2153, As Introduced: 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 Change in Number of State Employees from FY 2009 2010 ($323,121) $323,121 5.0 2011 ($282,621) $282,621 5.0 2012 ($282,621) $282,621 5.0 2013 ($282,621) $282,621 5.0 2014 ($282,621) $282,621 5.0
Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 2009 2010 ($323,121) $323,121 5.0 2011 ($282,621) $282,621 5.0 2012 ($282,621) $282,621 5.0 2013 ($282,621) $282,621 5.0 2014 ($282,621) $282,621 5.0
2010 ($323,121) $323,121 5.0
2011 ($282,621) $282,621 5.0
2012 ($282,621) $282,621 5.0
2013 ($282,621) $282,621 5.0
2014 ($282,621) $282,621 5.0
Fiscal Analysis
The bill would amend the Occupations Code to incorporate boot operators and booting companies into the licensing and regulation of towing operators and storage facilities governed by the Texas Department of Licensing and Regulation (TDLR). The bill would establish a license requirement for boot operators and booting companies. The bill would establish the Towing, Storage, and Booting Advisory Board, and increase the membership by one. The bill would establish the terms for regulation of booting operators and companies, including the right of an owner or operator of a vehicle to a hearing for a violation of rules by a boot operator or company.The bill would require the presiding officer of the Texas Commission of Licensing and Regulation to appoint to the Towing, Storage, and Booting Advisory Board one representative of a booting company promptly after the bill takes effect. The bill would take effect September 1, 2009.
The bill would amend the Occupations Code to incorporate boot operators and booting companies into the licensing and regulation of towing operators and storage facilities governed by the Texas Department of Licensing and Regulation (TDLR). The bill would establish a license requirement for boot operators and booting companies. The bill would establish the Towing, Storage, and Booting Advisory Board, and increase the membership by one. The bill would establish the terms for regulation of booting operators and companies, including the right of an owner or operator of a vehicle to a hearing for a violation of rules by a boot operator or company.The bill would require the presiding officer of the Texas Commission of Licensing and Regulation to appoint to the Towing, Storage, and Booting Advisory Board one representative of a booting company promptly after the bill takes effect. The bill would take effect September 1, 2009.
Methodology
Based on the analysis of TDLR, while current numbers of private registered booting companies are limited, towing companies currently licensed with TDLR would apply for the new booting license and increase the number of companies. As such, TDLR estimates 25 percent of towing companies currently licensed with TDLR would apply for the booting license, totalling 975 companies. TDLR estimates 2,750 booting operators would apply for the license. Based on these estimates and the history of booting and towing complaints, TDLR anticipates receiving 1,825 complaints per year, resulting in 200 hearings annually. TDLR anticipates needing an additional 5.0 full-time-equivalent positions (FTEs) to license and regulate the booting companies and operators: 1.0 administrative assistant in licensing, 1.0 customer service representative, 1.0 legal assistant for intake, 0.5 administrative assistant for complaint intake, 0.5 investigator for complaint intake, 0.5 attorney for prosecutions, and 0.5 legal assistant for prosecutions. Other costs included in the total estimates include fees for DPS criminal history background checks, plastic licenses, and TexasOnline fees. Additional costs cover equipment expenditures and rent for TDLR's office space outside of state owned facilities. This analysis assumes that any increased costs to the agency, which is statutorily required to generate revenue sufficient to cover its cost of operation, would be offset by an increase in fee generated revenue.
Based on the analysis of TDLR, while current numbers of private registered booting companies are limited, towing companies currently licensed with TDLR would apply for the new booting license and increase the number of companies. As such, TDLR estimates 25 percent of towing companies currently licensed with TDLR would apply for the booting license, totalling 975 companies. TDLR estimates 2,750 booting operators would apply for the license. Based on these estimates and the history of booting and towing complaints, TDLR anticipates receiving 1,825 complaints per year, resulting in 200 hearings annually.
TDLR anticipates needing an additional 5.0 full-time-equivalent positions (FTEs) to license and regulate the booting companies and operators: 1.0 administrative assistant in licensing, 1.0 customer service representative, 1.0 legal assistant for intake, 0.5 administrative assistant for complaint intake, 0.5 investigator for complaint intake, 0.5 attorney for prosecutions, and 0.5 legal assistant for prosecutions. Other costs included in the total estimates include fees for DPS criminal history background checks, plastic licenses, and TexasOnline fees. Additional costs cover equipment expenditures and rent for TDLR's office space outside of state owned facilities.
This analysis assumes that any increased costs to the agency, which is statutorily required to generate revenue sufficient to cover its cost of operation, would be offset by an increase in fee generated revenue.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 452 Department of Licensing and Regulation
452 Department of Licensing and Regulation
LBB Staff: JOB, KJG, MW, ES, TP
JOB, KJG, MW, ES, TP