LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session Revision 1 March 12, 1999 TO: Honorable David Sibley, Chair, Senate Committee on Economic Development FROM: John Keel, Director, Legislative Budget Board IN RE: SB520 by Cain (relating to discharge of a lien on a motor vehicle), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB520, Committee Report 1st House, Substituted: 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 Probable Revenue Probable Revenue * * Year State Highway Fund Gain to State Gain to Counties * * 0006 Highway Fund * * 0006 * * 2000 $0 $0 $0 * * 2001 0 0 0 * * 2002 (1,354,700) 3,496,000 2,185,000 * * 2003 (3,565,000) 9,200,000 5,750,000 * * 2004 (7,130,000) 18,400,000 11,500,000 * ************************************************************************** Fiscal Analysis The bill would require a lienholder, within 21 days after a lien is satisfied, to apply for a corrected title removing the lien. Methodology The Texas Department of Transportation, TxDot estimated the number of lien titles issued annually to be 2.3 million. The department estimated that 19 percent of the motor vehicle owners pay off their lien in 36 months, 31 percent in 4 years and 50 percent in 5 years. The cost to the department to process and issue a certificate of title is $3.10. The fee for a certificate of title is $13 of which the state retains $8 with the remaining $5 going to local government. Local Government Impact TxDot estimates possible revenue impacts to local government beginning in fiscal year 2002. Source Agencies: LBB Staff: JK, TH, ML