C.S.H.B. 3292 78(R)    BILL ANALYSIS


C.S.H.B. 3292
By: Krusee
Transportation
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Under current law, the Texas Department of Transportation (TxDOT) shall
establish and issue personalized prestige license plates and certain
specialized plates that are available personalized. Also, TxDOT shall
establish procedures for continuous application for, and issuance of,
personalized prestige license plates and certain specialized plates that
are available personalized.   

This bill would allow for the contracting out by the Texas Department of
Transportation of the marketing and sales of personalized prestige plates
and certain specialized plates that are available personalized. The bill
would permit the Texas Department of Transportation to recover
administrative costs (currently, the Texas Department of Transportation
may not receive enough monies to recoup administrative costs) for the
issuance of personalized prestige license plates and certain specialized
plates that are available personalized. The bill may improve sales of
personalized prestige license plates  and certain specialized plates,
thereby increasing the amount of monies directed to general revenue.  The
department shall deposit to the credit of the state highway fund an amount
sufficient for it to recover its administrative costs for all license
plates issued under this section, including the cost of and any payments
to the vendor under subsection (a), and any other amounts allocated to the
state highway fund by other law.  To the extent that other amounts
collected from the vendor are governed by other law, those amounts shall
be deposited in accordance with that other law, and for each plate, those
amounts shall be no less than those amounts in effect on January 1, 2003.
Any additional amounts received from the vendor shall be deposited in the
general revenue fund. 

The Legislative Budget Board estimated a two-year net positive impact to
General Revenue Related Funds of $2.4 million through the biennium ending
August 31, 2005. 

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly
granted to the Texas Transportation Commission in SECTION 1 (Subchapter F,
Chapter 502, Section 502.2515, Transportation Code) of this bill. 

ANALYSIS

C.S.H.B 3292 would amend section (j) of 502.2515, Transportation Code,
from filed version to redirect funds as follows: 

The department shall deposit to the credit of the state highway fund an
amount sufficient for it to recover its administrative costs for all
license plates issued under this section, including the cost of and any
payments to the vendor under subsection (a), and any other amounts
allocated to the state highway fund by other law.  To the extent that
other amounts collected from the vendor are governed by other law, those
amounts shall be deposited in accordance with that other law, and for each
plate, those amounts shall be no less than those amounts in effect on
January 1, 2003. Any additional amounts received from the vendor shall be
deposited in the general revenue fund. 

This  new language allows for monies previously allocated by law/statute
to be deposited accordingly,  TXDOT to recover administrative costs and
additional monies to be deposited into the general revenue fund. The
committee substitute allows for this bill to be a viable revenue
generating mechanism. 

EFFECTIVE DATE

Upon passage, or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

In the filed version, all of the monies received from the contractor by
TXDOT was mistakenly deposited to the credit of the general revenue fund. 

In the committee substitute to the filed version of H.B. 3292, the
department shall deposit  to the credit of the state highway fund an
amount sufficient to enable the department to recover its administrative
costs for all license plates issued under this section, including any
payments to the vendor under Subsection (a), and any other amounts
allocated to the state highway fund by another law.  To the extent that
disposition of other amounts received from the vendor are governed by
another law, those amounts shall be deposited in accordance with the other
law, and for each type of license plate, the amount charged for the
license plate may not be less than the amount in effect on January, 1,
2003.  Any additional amount received from the vendor shall be deposited
to the credit of the general revenue fund. 

This substitute incorporates the language to specify the direction of
revenue as requested by the Texas Department of Transportation and the
Office of the State Comptroller to ensure a positive fiscal note.