LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 7, 2009 TO: Honorable John Carona, Chair, Senate Committee on Transportation & Homeland Security FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB2500 by Carona (Relating to the issuance of specialty license plates.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB2500, As Introduced: a positive impact of $13,200 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. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 7, 2009 TO: Honorable John Carona, Chair, Senate Committee on Transportation & Homeland Security FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB2500 by Carona (Relating to the issuance of specialty license plates.), As Introduced TO: Honorable John Carona, Chair, Senate Committee on Transportation & Homeland Security FROM: John S. O'Brien, Director, Legislative Budget Board IN RE: SB2500 by Carona (Relating to the issuance of specialty license plates.), 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 SB2500 by Carona (Relating to the issuance of specialty license plates.), As Introduced SB2500 by Carona (Relating to the issuance of specialty license plates.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB2500, As Introduced: a positive impact of $13,200 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. Estimated Two-year Net Impact to General Revenue Related Funds for SB2500, As Introduced: a positive impact of $13,200 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 $6,600 2011 $6,600 2012 $6,600 2013 $6,600 2014 $6,600 2010 $6,600 2011 $6,600 2012 $6,600 2013 $6,600 2014 $6,600 All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 Probable Revenue Gain fromState Highway Fund6 Probable Revenue Gain fromNew General Revenue Dedicated Choose Life Account Probable Revenue Gain fromCounties 2010 $6,600 $4,500 $6,600 $300 2011 $6,600 $4,500 $6,600 $300 2012 $6,600 $4,500 $6,600 $300 2013 $6,600 $4,500 $6,600 $300 2014 $6,600 $4,500 $6,600 $300 Fiscal Year Probable Revenue Gain fromGeneral Revenue Fund1 Probable Revenue Gain fromState Highway Fund6 Probable Revenue Gain fromNew General Revenue Dedicated Choose Life Account Probable Revenue Gain fromCounties 2010 $6,600 $4,500 $6,600 $300 2011 $6,600 $4,500 $6,600 $300 2012 $6,600 $4,500 $6,600 $300 2013 $6,600 $4,500 $6,600 $300 2014 $6,600 $4,500 $6,600 $300 2010 $6,600 $4,500 $6,600 $300 2011 $6,600 $4,500 $6,600 $300 2012 $6,600 $4,500 $6,600 $300 2013 $6,600 $4,500 $6,600 $300 2014 $6,600 $4,500 $6,600 $300 Fiscal Analysis The bill would require the Texas Department of Transportation (TxDOT) to issue specialty license plates for persons who are graduates of the United States Merchant Marine Academy, the United States Coast Guard Academy, or the Uniformed Services University of the Health Sciences Academy. The bill would require TxDOT to issue specially designed license plates to honor the Texas Buffalo Soldiers. The bill would amend the Transportation Code to require the TxDOT to issue "Choose Life" specialty license plates. The bill would require the fee for issuance of the license plates, after deduction for TxDOTs administrative costs, to be deposited to the credit of a new Choose Life account in the General Revenue Fund. The bill would require the Attorney General to administer the account. The bill would specify that money in the account could only be spent to make grants to an eligible organization and defray the costs of administering the account. The bill would require the Attorney General by rule to establish guidelines for the expenditures; report on expenditure compliance; and appoint a seven-member advisory committee to assist in developing rules, reviewing grant applications, and making grant recommendations. The bill would take effect on September 1, 2009. The bill would require the Texas Department of Transportation (TxDOT) to issue specialty license plates for persons who are graduates of the United States Merchant Marine Academy, the United States Coast Guard Academy, or the Uniformed Services University of the Health Sciences Academy. The bill would require TxDOT to issue specially designed license plates to honor the Texas Buffalo Soldiers. The bill would amend the Transportation Code to require the TxDOT to issue "Choose Life" specialty license plates. The bill would require the fee for issuance of the license plates, after deduction for TxDOTs administrative costs, to be deposited to the credit of a new Choose Life account in the General Revenue Fund. The bill would require the Attorney General to administer the account. The bill would specify that money in the account could only be spent to make grants to an eligible organization and defray the costs of administering the account. The bill would require the Attorney General by rule to establish guidelines for the expenditures; report on expenditure compliance; and appoint a seven-member advisory committee to assist in developing rules, reviewing grant applications, and making grant recommendations. The bill would take effect on September 1, 2009. Methodology Based on the information and analysis provided by TxDOT, this analysis assumes 300 of the new Texas Buffalo Soldier specialty license plates would be issued each year at a fee of $30 each of which $7.50 would be deposited to the State Highway Fund for TxDOT administrative expenses; $0.50 would be retained by the counties; and $22 would be deposited to the General Revenue Fund (the bill does not specify a fund or account). Based on the information and analysis provided by TxDOT, this analysis assumes 300 of the new Choose Life specialty license plates would be issued each year at a fee of $30 each of which $7.50 would be deposited to the State Highway Fund for TxDOT administrative expenses; $0.50 would be retained by the counties; and $22 would be deposited to the new Choose Life Account in the General Revenue Fund. There would be no additional fees associated with the issuance of the new federal service academy specialty plates. Based on the analysis of TxDOT and the Office of the Attorney General, it is assumed any costs or duties associated with implementing the provisions of the bill could be absorbed within the agencies' existing resources. Note: 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. 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 fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature. Based on the information and analysis provided by TxDOT, this analysis assumes 300 of the new Texas Buffalo Soldier specialty license plates would be issued each year at a fee of $30 each of which $7.50 would be deposited to the State Highway Fund for TxDOT administrative expenses; $0.50 would be retained by the counties; and $22 would be deposited to the General Revenue Fund (the bill does not specify a fund or account). Based on the information and analysis provided by TxDOT, this analysis assumes 300 of the new Choose Life specialty license plates would be issued each year at a fee of $30 each of which $7.50 would be deposited to the State Highway Fund for TxDOT administrative expenses; $0.50 would be retained by the counties; and $22 would be deposited to the new Choose Life Account in the General Revenue Fund. There would be no additional fees associated with the issuance of the new federal service academy specialty plates. Based on the analysis of TxDOT and the Office of the Attorney General, it is assumed any costs or duties associated with implementing the provisions of the bill could be absorbed within the agencies' existing resources. Note: 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. 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 fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 601 Department of Transportation 601 Department of Transportation LBB Staff: JOB, KJG, MW, TG JOB, KJG, MW, TG