LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                               May 26, 2001
  
  
          TO:  Honorable Bill Ratliff, Lieutenant Governor
               Honorable James E. "Pete" Laney, Speaker of the House
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1831  by Pickett (relating to the power of the Texas
               Department of Transportation to contract and to issue
               certain license plates.), Conference Committee Report
  
**************************************************************************
*  No significant fiscal implication to the State is anticipated.        *
**************************************************************************
  
The bill would amend the Transportation Code to allow the Texas
Department of Transportation (TxDOT) to enter into an interlocal contract
with one or more local governments in accordance with Chapter 791,
Government Code.  The bill would require TxDOT to adopt policies and
procedures consistent with applicable state procurement practices for
soliciting and awarding the contracts.

The bill would amend the Transportation Code to require an annual
registration fee of $30 in addition to any other registration fees for
special license plates honoring the Young Men's Christian Association
(YMCA).  The bill would also amend the Education Code to create a new
dedicated account in the General Revenue Fund.  The bill would require
that $8 from each fee collected be deposited in the State Highway Fund to
defray the costs of providing the plates and that all remaining proceeds
be deposited in the new dedicated account.  The bill would also require
that funds in the new dedicated account could only be appropriated to the
Texas Education Agency for the purposes of making grants to benefit the
youth and government programs sponsored by the YMCA located in Texas.

The bill would amend the Transportation Code to require TxDOT to issue
specially designed license plates that include the words "Texans Conquer
Cancer" and would require an annual registration fee of $30 in addition
to any other registration fees for the plates.  The bill would also amend
the Health and Safety Code to create a new dedicated account in the
General Revenue Fund.  The bill would require that $5 from each fee
collected be deposited in the State Highway Fund to defray the costs of
providing the plates and that all remaining proceeds be deposited in the
new dedicated account.  The bill would also require that funds in the new
dedicated account would be administered by the Texas Cancer Council;
that the Council would establish guidelines for spending money credited
to the account; and the bill would establish an advisory committee to
assist the Council in establishing guidelines.

No significant fiscal implication to the State is anticipated for the
interlocal contract provision because any savings realized from
implementing the provisions of the bill would be used to fund other
transportation related projects.  In addition, no significant fiscal
implication to the State is anticipated for the license plate issuances
provided by the bill due to the estimated number of issuances for the
YMCA and "Texans Conquer Cancer" specialty license plates.

The bill would take effect immediately upon receiving two-thirds majority
vote in both houses; otherwise, the bill would take effect September 1,
2001.
  
Local Government Impact
  
The bill would allow TxDOT to contract with local units of government.
It is estimated that the bill would allow units of local government to
realize significant revenue increases through project and service
contracts and significant cost savings from a reduction in legal counsel
activity.
  
  
Source Agencies:   
LBB Staff:         JK, RB, MW