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: *************************************************************************** *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