LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
May 5, 1999
TO: Honorable Bill Ratliff, Chair, Senate Committee on Finance
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), Committee Report 2nd House,
as amended
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Fundsfor *
* HB2107, Committee Report 2nd House, as amended: $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:
**************************************************************************
*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 assist in program administration.
Annual revenues would be collected through a 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, the Rural Volunteer Fire Department
Assistance Account (account). The Comptroller's Office would allocate
the revenue from the imposed tax and contributions from other sources to
the account only for the costs of program administration.
Methodology
Annual revenue collections were estimated by the Comptroller's Office.
Projected fireworks sales volumes were multiplied by the proposed two
percent tax rate to determine the gain to the new account.
The TFS would require no additional FTEs to administer the program.
There would be no significant administrative costs to the Comptroller's
Office.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts
LBB Staff: JK, BB, SD, DE