LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              March 30, 1999
  
  
          TO:  Honorable Clyde Alexander, Chair, House Committee on
               Transportation
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB3014  by Hawley (Relating to the Texas Department of
               Transportation's automated registration and title
               system.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB3014, As Introduced:  positive impact of $0 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                                   $0  *
          *       2001                                    0  *
          *       2002                                    0  *
          *       2003                                    0  *
          *       2004                                    0  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***************************************************************************
*Fiscal      Probable Cost from State     Probable Revenue Gain to State  *
* Year             Highway Fund                    Highway Fund           *
*                      0006                            0006               *
*  2000                      $(6,777,443)                      $8,649,336 *
*  2001                      (13,159,533)                      17,545,044 *
*  2002                      (13,347,715)                      17,796,953 *
*  2003                      (13,538,588)                      18,051,450 *
*  2004                      (13,732,190)                      18,309,586 *
***************************************************************************
  
Fiscal Analysis
  
The bill would require the Texas Department of Transportation to collect
an additional $1 fee when processing a registration issuance, renewal or
replacement. The bill would allow the department to enhance the
automated registration and titling system.
  
  
Methodology
  
The Texas Department of Transportation, TxDot, applied the following
assumptions in providing an estimate for the bill.  There would be
17,054,788 registrations and replacements issued in fiscal year 1999
with a 1.43 percent growth thereafter. That $0.75 of the one dollar
collected would be outsourced to a vendor responsible for a
point-of-sale registration insignia system. The department would retain
the remaining $0.25 of the dollar fee. The department provided for an
implementation date of March 1, 2000 due to the length of time needed
for programming changes. Therefore, in the first year there would be
only a partial year's collection of the fee.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   
LBB Staff:         JK, PE, ML