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
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* 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. *
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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 *
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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) *
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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