LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              March 19, 1999
  
  
          TO:  Honorable David Swinford, Chair, House Committee on
               Agriculture & Livestock
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2107 by Cook (Relating to assistance to certain
               volunteer fire departments and to the imposition of a tax
               to finance that assistance.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB2107, As Introduced:  positive impact of $0 through the biennium    *
*  ending August 31, 2001.                                               *
*                                                                        *
*  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                *
          *       2000                                   $0  *
          *       2001                                    0  *
          *       2002                                    0  *
          *       2003                                    0  *
          *       2004                                    0  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
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*Fiscal    Probable Revenue         Probable        Change in Number of  *
* Year   Gain/(Loss) from New  Savings/(Cost) from State Employees from  *
*          - GR Dedicated -   New - GR Dedicated -        FY 1999        *
*        Rural Volunteer Fire Rural Volunteer Fire                       *
*             Department           Department                            *
*         Assistance Account   Assistance Account                        *
*  2000               $375,000           $(375,000)                  0.0 *
*  2001                394,000            (394,000)                  0.0 *
*  2002                414,000            (414,000)                  0.0 *
*  2003                434,000            (434,000)                  0.0 *
*  2004                456,000            (456,000)                  0.0 *
**************************************************************************
  
Fiscal Analysis
  
The bill would allow the Texas Forest Service (TFS) to assist certain
volunteer fire departments in paying for equipment and training of
personnel through a Rural Volunteer Fire Department Assistance Program
(program).  The director of the TFS would appoint an advisory committee
to advise in regard to the administration of the program.

The annual revenues, based on the Comptroller's Office estimates, would
be collected through a fireworks sales tax that would be imposed on the
retail sale of fireworks.  TFS would use these funds to administer the
program.  The bill would create a new dedicated account in the General
Revenue Fund - Rural Volunteer Fire Department Assistance (account).
The Comptroller's Office would allocate the revenue from the imposed tax
and contributions from other sources to the new account only for the
purpose of administering the program.
  
  
Methodology
  
The TFS would require no additional FTEs to administer the program.
There would be no significant administrative costs to the Comptroller's
Office.  Projected fireworks sales volumes were multiplied by the
proposed two percent fireworks tax rate to determine the gain to the new
account.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   
LBB Staff:         JK, DE, KC