LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                            February 25, 1999
  
  
          TO:  Honorable Florence Shapiro, Chair, Senate Committee on
               State Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB432  by Ratliff (Relating to the designation of a
               registration period of less than 12 months by the owner
               of a motor vehicle or a trailer.), As Introduced
  
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*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB432, 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.                                                             *
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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:
  
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*Fiscal   Probable Cost from    Probable Revenue     Probable Revenue    *
* Year    State Highway Fund     Loss from State     Loss to Counties    *
*                0006             Highway Fund                           *
*                                     0006                               *
*  2000             $(502,900)        $(16,643,756)         $(8,321,580) *
*  2001               (42,260)         (16,881,772)          (8,440,500) *
*  2002               (42,865)         (17,123,162)          (8,561,400) *
*  2003               (43,477)         (17,368,025)          (8,684,200) *
*  2004               (44,099)         (17,616,395)          (8,808,000) *
**************************************************************************
  
Fiscal Analysis
  
The bill would permit the owner of a motor vehicle or trailer to
designate a registration period of less than 12 months.  Provisions of
the bill would allow the mandated fee to be computed as one-twelfth of
the annual registration fee multiplied by the number of months in the
designated registration period.
  
  
Methodology
  
The Texas Department of Transportation, TxDot, estimated that 5 percent
of the annual registrations would be for less than one year and would, on
average, be registered for 6 months out of the year.  The department
estimated total fees assessed, on average, for the registrants would be
$30, of which the state receives $20 or 66 percent and the counties $10
or 34 percent.  TxDot estimated that the state and counties would have a
decrease in net revenue from provisions in the bill.
  
  
Local Government Impact
  
TxDot estimated that county tax offices would incur a net loss in revenue
from allowing vehicles to be registered for a period of less than one
year.
  
  
Source Agencies:   
LBB Staff:         JK, SD, ML