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