LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
April 30, 1995
TO: Honorable Clyde Alexander, Chair IN RE: Committee Substitute
Committee on Transportation for House
House of Representatives Bill No. 1896
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on House Bill No.
1896 (Relating to the regulation of certain motor vehicle dealers
and the sale, titling, and registration of certain motor
vehicles.) this office has determined the following:
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
The bill would establish the Motor Vehicle Transaction Recovery
Fund as an account in the State Treasury. The fund would be used
to pay claims made against the fund and to pay the cost directly
related to the administration of the fund. An assessment fee of
$350, paid by an applicant or licensee, would be used to
establish the corpus of the fund of $10,000,000. The fee would be
paid by the licensee for three consecutive renewal periods. If
after four years the balance of the fund is less than $10,000,000
each licensee would continue to pay the assessment fee until the
fund balance is at least $10,000,000.
The bill would allow recovery from the fund, through a final
judgment that is enforceable in the courts, against an applicant
or licensee for failure to pay a draft, including checks, drawn
for the purchase of a motor vehicle or the applicant's or
licensee's failure to deliver good title.
The probable fiscal implication of implementing the provisions of
the bill during each of the first five years following passage
is estimated as follows:
Fiscal Probable Cost Out Probable Gain to Change in
Year of State Highway the Motor Vehicle Number of State
Fund 006 Transaction Employees from
Recovery Account FY 1995
in the General
Revenue Fund
1996 $33,057 $6,893,000 1.0
1997 26,057 6,893,000 1.0
1998 26,057 6,893,000 1.0
1999 26,057 6,893,000 1.0
2000 26,057 0 1.0
Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
The fiscal implication to units of local government cannot be
determined.
Source: Comptroller of Public Accounts, Department of
Transportation
LBB Staff: JK, ML, DF