LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              March 20, 1999
  
  
          TO:  Honorable Clyde Alexander, Chair, House Committee on
               Transportation
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2409  by King, Tracy (Relating to the requirements for
               a certificate of title to a motor vehicle.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB2409, As Introduced:  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:
  
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*Fiscal      Probable     Probable Cost      Probable        Probable     *
* Year   Revenue Gain to    from State     Revenue Loss  Revenue Loss to  *
*            General       Highway Fund     from State       Counties     *
*          Revenue Fund        0006        Highway Fund                   *
*              0001                            0006                       *
*  2000          $500,000      $(325,620)    $(3,500,000)    $(1,700,000) *
*  2001           500,000               0     (3,500,000)     (1,700,000) *
*  2002           500,000               0     (3,500,000)     (1,700,000) *
*  2003           500,000               0     (3,500,000)     (1,700,000) *
*  2004           500,000               0     (3,500,000)     (1,700,000) *
***************************************************************************
  
Fiscal Analysis
  
The bill would revise the information required on a certificate of title
and  the Texas Department of Transportation's grounds for refusal to
issue, revoke, or suspend a certificate of title.
  
  
Methodology
  
The Texas Department of Transportation (TxDot) estimated that 2 percent
of the average number of titles issued per year would be to individuals
who will "title only" and drive unregistered on public roadways. In
addition, TxDot also estimated that 2 percent of 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. TxDot estimated that the
average registration fee for a passenger/light commercial vehicle is
$60.  The state retains approximately $40 and the county $20. TxDot
included programming costs necessary to modify the department's
automated registration and titling system.
  
  
Local Government Impact
  
TxDot estimated that local governments could incur a revenue loss
pursuant to provisions of the bill.
  
  
Source Agencies:   
LBB Staff:         JK, PE, ML