LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION May 9, 2015 TO: Honorable Dan Patrick, Lieutenant Governor, Senate 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.), As Passed 2nd House Estimated Two-year Net Impact to General Revenue Related Funds for SB797, As Passed 2nd House: 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
May 9, 2015
TO: Honorable Dan Patrick, Lieutenant Governor, Senate 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.), As Passed 2nd House
TO: Honorable Dan Patrick, Lieutenant Governor, Senate
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.), As Passed 2nd House
Honorable Dan Patrick, Lieutenant Governor, Senate
Honorable Dan Patrick, Lieutenant Governor, Senate
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.), As Passed 2nd House
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.), As Passed 2nd House
Estimated Two-year Net Impact to General Revenue Related Funds for SB797, As Passed 2nd House: 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, As Passed 2nd House: 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 $0 2019 $0 2020 $0
2016 ($425,000)
2017 ($300,000)
2018 $0
2019 $0
2020 $0
All Funds, Five-Year Impact: Fiscal Year Probable (Cost) fromGeneral Revenue Fund1 2016 ($425,000) 2017 ($300,000) 2018 $0 2019 $0 2020 $0
Fiscal Year Probable (Cost) fromGeneral Revenue Fund1 2016 ($425,000) 2017 ($300,000) 2018 $0 2019 $0 2020 $0
2016 ($425,000)
2017 ($300,000)
2018 $0
2019 $0
2020 $0
Fiscal Analysis
The bill would amend the Agriculture Code, regarding the powers and duties of the Department of Agriculture (TDA). The bill would create the Trade Agricultural Inspection Grant Program. The program would allow TDA to make grants to nonprofit organizations for reducing wait times for agricultural inspections of vehicles at ports of entry along the Texas-Mexico border. TDA would request proposals for grants from organizations with experience working with border inspection authorities to reduce border crossing wait times. A grant award would be based on the proposed program's quantifiable effectiveness, the potentially positive impact on the agricultural processing industry in Texas, and the nonprofit's ability to provide matching funds. The total amount of all grants awarded under the program could not exceed $725,000. The bill would require TDA to enter into a contract with each grant recipient that includes performance requirements and authorizes TDA to recoup grant money if a recipient fails to meet the terms of the contract. TDA would be required to establish procedures to administer the program. Grant recipients could use grant money for grant-related purposes only, which could include reimbursing a federal governmental agency that provides additional border agricultural inspectors or pays overtime to inspectors at the request of the grant recipient. TDA could solicit and accept gifts, grants, and donations from any source to be used in making grants under the program. TDA would also make grants using money appropriated for this program. TDA would be required to report to the Legislature by January 15, 2017 on the performance of the program. Statutory authority for the program would expire on September 1, 2017. The bill would take effect September 1, 2015.
Methodology
This analysis includes grant awards of $425,000 in fiscal year 2016 and $300,000 in fiscal year 2017 and 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: 601 Department of Transportation, 551 Department of Agriculture, 304 Comptroller of Public Accounts
601 Department of Transportation, 551 Department of Agriculture, 304 Comptroller of Public Accounts
LBB Staff: UP, TB, KVe, MW, SZ
UP, TB, KVe, MW, SZ