LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION March 29, 2011 TO: Honorable John T. Smithee, Chair, House Committee on Insurance FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB2153 by Eiland (Relating to a fee collected by the Automobile Burglary and Theft Prevention Authority.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB2153, As Introduced: a positive impact of $37,029,000 through the biennium ending August 31, 2013. 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, 82ND LEGISLATIVE REGULAR SESSION
March 29, 2011
TO: Honorable John T. Smithee, Chair, House Committee on Insurance FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB2153 by Eiland (Relating to a fee collected by the Automobile Burglary and Theft Prevention Authority.), As Introduced
TO: Honorable John T. Smithee, Chair, House Committee on Insurance
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: HB2153 by Eiland (Relating to a fee collected by the Automobile Burglary and Theft Prevention Authority.), As Introduced
Honorable John T. Smithee, Chair, House Committee on Insurance
Honorable John T. Smithee, Chair, House Committee on Insurance
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
HB2153 by Eiland (Relating to a fee collected by the Automobile Burglary and Theft Prevention Authority.), As Introduced
HB2153 by Eiland (Relating to a fee collected by the Automobile Burglary and Theft Prevention Authority.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2153, As Introduced: a positive impact of $37,029,000 through the biennium ending August 31, 2013. 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 HB2153, As Introduced: a positive impact of $37,029,000 through the biennium ending August 31, 2013.
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 2012 $18,287,000 2013 $18,742,000 2014 $19,196,000 2015 $19,650,000 2016 $20,105,000
2012 $18,287,000
2013 $18,742,000
2014 $19,196,000
2015 $19,650,000
2016 $20,105,000
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2012 $18,287,000 2013 $18,742,000 2014 $19,196,000 2015 $19,650,000 2016 $20,105,000
Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 2012 $18,287,000 2013 $18,742,000 2014 $19,196,000 2015 $19,650,000 2016 $20,105,000
2012 $18,287,000
2013 $18,742,000
2014 $19,196,000
2015 $19,650,000
2016 $20,105,000
Fiscal Analysis
The bill would amend Section 10, Article 4413(37), Revised Statutes, to require an insurer to pay a fee of $2, rather than $1, mutliplied by the total number of motor vehicle years of insurance for policies delivered, issued, or renewed. The bill would authorize fifty percent of each fee to be appropriated only to the Automobile Burglary and Theft Prevention Authority.
Methodology
Under current law the Automobile Burglary and Theft Prevention Authority fee is paid by insurers at the rate of $1 per motor vehicle year of insurance. It is assumed that an increase in the fee to $2 would have no effect on the number of motor vehicle policies issued, delivered, or renewed. Estimates of revenue generated from the increased fee are based on the Comptroller of Public Accounts 2012-13 Biennial Revenue Estimate. 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, Section 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.
Under current law the Automobile Burglary and Theft Prevention Authority fee is paid by insurers at the rate of $1 per motor vehicle year of insurance. It is assumed that an increase in the fee to $2 would have no effect on the number of motor vehicle policies issued, delivered, or renewed. Estimates of
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, Section 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.
Technology
The Comptroller of Public Accounts anticipates a one-time technology cost for notifying taxpayers of the new tax fee on tax forms and publications, system programming, project management, and security controls. It is assumed this cost could be absorbed within existing resources.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 608 Department of Motor Vehicles
304 Comptroller of Public Accounts, 608 Department of Motor Vehicles
LBB Staff: JOB, KJG, JI, MM
JOB, KJG, JI, MM