LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 17, 2001
TO: Honorable Clyde Alexander, Chair, House Committee on
Transportation
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB1516 by Lucio (Relating to the issuance of certain
special license plates by the Texas Department of
Transportation.), As Engrossed
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1516, As Engrossed: negative impact of $(46,000) 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 $(46,000) *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
****************************************************
All Funds, Five-Year Impact:
***************************************************************************
*Fiscal Probable Savings/(Cost) from Probable Savings/(Cost) from *
* Year State Highway Fund General Revenue Fund *
* 0006 0001 *
* 2002 $276,000 $(46,000) *
* 2003 288,000 0 *
* 2004 288,000 0 *
* 2005 288,000 0 *
* 2006 288,000 0 *
***************************************************************************
Fiscal Analysis
The bill would amend the Transportation Code by requiring that renewals
of special license plates be processed by a county tax
assessor-collector. The bill would require the Texas Department of
Transportation (TxDOT) to consolidate renewal notices for special license
plates with the current renewal process for other plates and update its
automated system accordingly. The bill would eliminate the $3 annual fee
and the renewal fee for the first set of disabled veteran, Purple Heart
recipient, Pearl Harbor survivor, former Prisoner of War, and Legion of
Valor special license plates. The bill would also eliminate the
requirement that TxDOT send 50 cents from each fee collected to the
county treasury of the county in which the special license plate
applicant resides and that individual applicants provide proof of
eligibility when renewing these special plates. The bill would eliminate
the $15 fee charged for each additional set of Pearl Harbor survivor and
Purple Heart recipient plates issued to an individual. The bill would
also require state officials, county judges, members of Congress and
state and federal judges to be issued multi-year license plates rather
than plates issued annually.
The bill would take effect September 1, 2001 and would only apply to
initial registration and renewals applied for on or after the effective
date. The bill would require that law in effect prior to September 1,
2001 would continue to govern registration and renewals applied for
before the effective date.
Methodology
It is estimated that removing the $3 fee from the disabled veteran,
Purple Heart recipient, Pearl Harbor survivor, former Prisoner of War,
and Legion of Valor plates would result in annual revenue loss of $94,000
to the State Highway Fund (Fund 6) and that eliminating the $15 fee
charged for each additional set of Pearl Harbor survivor and Purple Heart
recipient plates would result in an additional loss of $74,000 per year.
It is also estimated that a cost savings of approximately $456,000 to
Fund 6 would be realized annually with the elimination of the first
mailing notice to collect the special plate fee.
It is estimated that a one-time payment delay would be realized during
the first year in amounts totaling $12,000 for Fund 6; $46,000 to the
General Revenue Fund; and $22,200 to other state funds and accounts as a
result of renewing special plates in a single transaction through county
tax assessor-collectors' offices.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 601 Texas
Department of Transportation
LBB Staff: JK, JO, MW