LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session May 11, 1999 TO: Honorable Florence Shapiro, Chair, Senate Committee on State Affairs FROM: John Keel, Director, Legislative Budget Board IN RE: HB2409 by King, Tracy (Relating to the issuance of a certificate of title for and the transfer of a motor vehicle that is not registered in this state.), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2409, As Engrossed: positive impact of $1,000,000 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 $500,000 * * 2001 500,000 * * 2002 500,000 * * 2003 500,000 * * 2004 500,000 * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Probable Probable Cost Probable * * Year Revenue Gain to Revenue Gain to from State Revenue Gain to * * General Revenue State Highway Highway Fund Counties * * Fund Fund 0006 * * 0001 0006 * * 2000 $500,000 $300,000 $(325,620) $500,000 * * 2001 500,000 300,000 0 500,000 * * 2002 500,000 300,000 0 500,000 * * 2003 500,000 300,000 0 500,000 * * 2004 500,000 300,000 0 500,000 * *************************************************************************** Fiscal Analysis The bill would allow the Texas Department of Transportation to issue a "title only" for a vehicle instead of both title and registration. Methodology The Texas Department of Transportation (TxDot) estimated that the department would issue an average of 5,000,000 titles per year from 2000 through 2004; and of those, 2 percent or 100,000 would request "title only". The title applications would be to title inoperable vehicles and vehicles not used on public roads each year. Currently, the title application fee is $13, of which $5 goes to the State Highway Fund, $5 is deposited to the General Revenue Fund, and $3 is retained by the county. Local Government Impact TxDot estimated that local governments could have a revenue gain pursuant to provisions of the bill. Source Agencies: 601 Department of Transportation LBB Staff: JK, SD, PE, ML