LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 24, 2001 TO: Honorable David Sibley, Chair, Senate Committee on Business & Commerce 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 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1516, Committee Report 1st House, Substituted: 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