LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 19, 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.), Committee Report 2nd House, as amended
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1516, Committee Report 2nd House, as amended: 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. *
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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:
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*Fiscal Probable Revenue Gain/(Loss) Probable Savings/(Cost) from *
* Year from 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.
This section of 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.
The bill would also amend the Transportation Code to require TxDOT to
issue specially designed license plates for passenger cars and light
trucks owned by members or alumnae of the Delta Sigma Theta Sorority.
The bill would also amend the Education Code to create a new dedicated
account in the General Revenue Fund. The bill would require an annual
registration fee of $25 in addition to any other registration fees for
the specially designed license plates; 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 funds in the new
dedicated account to be appropriated to the Texas Education Agency for
the purpose of making grants to benefit programs sponsored by the El Paso
alumnae Chapter of the Delta Sigma Theta Sorority.
This section of the bill would take effect upon receiving a two-thirds
majority vote of the members in both houses; otherwise, the bill would
take effect September 1, 2001.
The bill would also 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.
This section of 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 also amend the Transportation Code to allow for the
issuance of Armed Forces specialty license plates for motorcycles which
would include the words, "U.S. Veteran." The bill would require TxDOT
to provide for the issuance of specially-designed license plates for
motorcycles owned by retired or honorably discharged members of the U.S.
armed forces. The bill would allow the surviving spouse of a person
eligible for one of these plates to register one motorcycle as long as
the spouse remains unmarried. The bill would require purchasers to
submit proof of eligibility and pay an annual fee of $5 for the first
plate and $7.50 for each additional plate, in addition to the normal
costs of registration. The bill would require TxDOT to send $0.50 of
each fee to the county treasurer of the county in which an applicant
resides for deposit to the county's general fund to help pay the costs of
administering the bill.
This section of the bill would take effect September 1, 2001.
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.
No significant fiscal implication to the State is anticipated for the
other license plate issuances provided by the bill due to the estimated
number of issuances for alumnae of the Delta Sigma Theta Sorority, the
YMCA, and Armed Forces specialty license plates for motorcycles.
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, RT, MW