TO: | Honorable Mike Krusee, Chair, House Committee on Transportation |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB3292 by Krusee (Relating to the marketing and sale of prestige and specialized license plates.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | $4,875,000 |
2005 | $4,875,000 |
2006 | $4,875,000 |
2007 | $4,875,000 |
2008 | $4,875,000 |
Fiscal Year | Probable Revenue Gain/(Loss) fromGENERAL REVENUE FUND 1 |
Probable Revenue Gain/(Loss) fromSTATE HIGHWAY FUND 6 |
Probable Savings/(Cost) fromSTATE HIGHWAY FUND 6 |
---|---|---|---|
2004 | $4,875,000 | ($75,000) | ($4,700,800) |
2005 | $4,875,000 | ($75,000) | ($2,400,000) |
2006 | $4,875,000 | ($75,000) | ($2,400,000) |
2007 | $4,875,000 | ($75,000) | ($2,400,000) |
2008 | $4,875,000 | ($75,000) | ($2,400,000) |
The bill would amend the Transportation Code to allow the Texas Transportation Commission (TTC) to authorize the Texas Department of Transportation (TxDOT) to enter into a contract with a private vendor to market and sell personalized prestige license plates and other specialized license plates. The bill would require the TTC to create rules and establish fees for issuing and renewing such license plates upon authorizing TxDOT to contract with a private vendor. The bill would establish guidelines for setting, increasing, decreasing, charging, and collecting fees; require that a vendor submit reports supporting collected fees and be paid from those fees; allow the commission to authorize TxDOT to pay a licensing fee to use a trademark in marketing and selling plates; require that all money received by TxDOT from a vendor be deposited to the credit of the General Revenue Fund. The bill would also clarify that TxDOT may allow or require a vendor to establish an electronic infrastructure that is coordinated and compatible with its registration system.
TxDOT estimates 20 new sets of 3,000 specialized license plates would be issued during each fiscal year (60,000) under a contract agreement with a private vendor and that vendor payments of $20 would be realized for each specialized license plate. For the purposes of this cost estimate, the same assumptions are made for personalized prestige license plates. Similarly, the bill would require the specialized license plate fees to be charged in addition to the normal costs of registration and this estimate assumes the same requirement for personalized prestige plates. For the purposes of this analysis, it is assumed that annual fees of $60 per plate would be established for personalized prestige and specialized license plates. In addition, TxDOT also estimates that $2,300,800 in implementation costs would be realized during the first year.
Source Agencies: | 304 Comptroller of Public Accounts, 601 Department of Transportation
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LBB Staff: | JK, JO, RR, MW
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