LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 1, 2001 TO: Honorable Clyde Alexander, Chair, House Committee on Transportation FROM: John Keel, Director, Legislative Budget Board IN RE: HB2418 by Noriega (Relating to the registration period for certain motor vehicles.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2418, Committee Report 1st House, Substituted: positive impact * * of $0 through the biennium ending August 31, 2003. * * * * 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 * * 2002 $0 * * 2003 0 * * 2004 0 * * 2005 0 * * 2006 0 * **************************************************** All Funds, Five-Year Impact: ***************************************************** * Fiscal Year Probable Revenue Gain/(Loss) from * * State Highway Fund * * 0006 * * 2002 $28,392,840 * * 2003 7,526,832 * * 2004 611,160 * * 2005 650,244 * * 2006 668,928 * ***************************************************** Fiscal Analysis The bill would amend the Transportation Code to authorize the Texas Department of Transportation to allow the owner of any motor vehicle to pay a registration fee for a period of 12, 24, or 36 months. The bill would take effect September 1, 2001, and would only apply to a registration period beginning on or after that date. Methodology The department registered approximately 17.2 million vehicles during fiscal year 2000. It is assumed that 17.7 million vehicles would be registered in fiscal year 2002 and that this amount would increase by approximately 1.7 percent each year. The department estimates that three percent of all motor vehicles requiring registration each year would be issued a multi-year registration and that of this amount 67% would be issued a two year registration and 33% would be issued a three year registration. Amounts estimated above reflect $40 per annual registration being deposited to the State Highway Fund from an average $60 vehicle registration fee estimated by the department. Variances in the amount of motor vehicles registered and receiving multi-year registrations each year would result in a corresponding change in revenues collected. The department estimates program cost savings would be realized each year as a result of issuing multi-year registrations. However, it is assumed that any savings realized would be used for other transportation related purposes. Local Government Impact The bill would allow for a fluctuation in revenues similar to that mentioned above and would require counties to receive the usual $1.90 commission and fees from the registration payment for each year of registration. The bill would not prohibit additional fees paid at the time of registration to be collected from the payment for each year of registration. Source Agencies: 601 Texas Department of Transportation, 304 Comptroller of Public Accounts LBB Staff: JK, JO, RT, MW