LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION April 24, 2015 TO: Honorable Eddie Lucio Jr., Chair, Senate Committee on Intergovernmental Relations FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB797 by Lucio (Relating to a grant program to reduce wait times for agricultural inspections of vehicles at ports of entry along the Texas-Mexico border.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for SB797, Committee Report 1st House, Substituted: a negative impact of ($725,000) through the biennium ending August 31, 2017. 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, 84TH LEGISLATIVE REGULAR SESSION
April 24, 2015
TO: Honorable Eddie Lucio Jr., Chair, Senate Committee on Intergovernmental Relations FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB797 by Lucio (Relating to a grant program to reduce wait times for agricultural inspections of vehicles at ports of entry along the Texas-Mexico border.), Committee Report 1st House, Substituted
TO: Honorable Eddie Lucio Jr., Chair, Senate Committee on Intergovernmental Relations
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB797 by Lucio (Relating to a grant program to reduce wait times for agricultural inspections of vehicles at ports of entry along the Texas-Mexico border.), Committee Report 1st House, Substituted
Honorable Eddie Lucio Jr., Chair, Senate Committee on Intergovernmental Relations
Honorable Eddie Lucio Jr., Chair, Senate Committee on Intergovernmental Relations
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB797 by Lucio (Relating to a grant program to reduce wait times for agricultural inspections of vehicles at ports of entry along the Texas-Mexico border.), Committee Report 1st House, Substituted
SB797 by Lucio (Relating to a grant program to reduce wait times for agricultural inspections of vehicles at ports of entry along the Texas-Mexico border.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for SB797, Committee Report 1st House, Substituted: a negative impact of ($725,000) through the biennium ending August 31, 2017. 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 SB797, Committee Report 1st House, Substituted: a negative impact of ($725,000) through the biennium ending August 31, 2017.
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 2016 ($425,000) 2017 ($300,000) 2018 ($300,000) 2019 ($300,000) 2020 ($300,000)
2016 ($425,000)
2017 ($300,000)
2018 ($300,000)
2019 ($300,000)
2020 ($300,000)
All Funds, Five-Year Impact: Fiscal Year Probable (Cost) fromGeneral Revenue Fund1 2016 ($425,000) 2017 ($300,000) 2018 ($300,000) 2019 ($300,000) 2020 ($300,000)
Fiscal Year Probable (Cost) fromGeneral Revenue Fund1 2016 ($425,000) 2017 ($300,000) 2018 ($300,000) 2019 ($300,000) 2020 ($300,000)
2016 ($425,000)
2017 ($300,000)
2018 ($300,000)
2019 ($300,000)
2020 ($300,000)
Fiscal Analysis
The bill would amend the Agricultural Code to authorize the Texas Department of Agriculture (TDA) to use appropriated funds for a Border Agricultural Inspection Grant Program. After a request for proposals, TDA would award a grant to a nonprofit organization that TDA determines would promote agricultural processing in Texas by reducing wait times for agricultural inspections at ports of entry along the Texas-Mexico border. Selected grantees to provide matching funds equal to the amount of the grant.The bill would restrict the use of grant money to paying for only those activities directly related to the purpose of the grant program. It would authorize a grant recipient to use grant funds to reimburse a federal agency that, at the request of the grant recipient, provides additional border agricultural inspectors or pays overtime to border agricultural inspectors at ports of entry on the Texas-Mexico border. The bill would take effect September 1, 2015.
Methodology
TDA reports it conducted a feasibility study of the proposed grant program and determined appropriate funding levels would be grant awards of $425,000 in fiscal year 2016 and $300,000 in fiscal year 2017 and each year thereafter from General Revenue. Assuming that reimbursing a federal inspector costs $125 per hour, amounts granted would provide for an additional 3,400 inspection hours in fiscal year 2016 and 2,400 inspection hours in fiscal year 2017. Matching funds provided by selected grantees would increase the number of inspection hours funded.This analysis assumes that costs associated with administering and monitoring the new grant program could be reasonably absorbed within TDA's existing resources.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 551 Department of Agriculture, 601 Department of Transportation, 304 Comptroller of Public Accounts
551 Department of Agriculture, 601 Department of Transportation, 304 Comptroller of Public Accounts
LBB Staff: UP, TB, KVe, MW, SZ
UP, TB, KVe, MW, SZ