LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION

April 25, 2005

TO:	Honorable Kino Flores, Chair, House Committee on Licensing & Administrative Procedures
FROM:	John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:	HB2149 by Goodman (Relating to manufacturer or distributor ownership of certain motor vehicle dealerships.), As Introduced

No significant fiscal implication to the State is anticipated.

The bill would amend Chapter 2301 of the Occupations Code, related to the sale or lease of motor vehicles, to allow a manufacturer or distributor to own an interest of less than 50 percent in an entity that holds a general distinguishing number (motor vehicle dealer) if the entity operates as a dealer for motor vehicles that have a gross vehicle weight of at least 17,500 pounds and are of a size and type designed to carry at least 17 seated passengers; is the exclusive seller in the United States for the motor vehicles; and is not operated or controlled by the manufacturer or distributor.

Based on the analysis of the Texas Department of Transportation, it is assumed any duties associated with implementing the provisions of the bill could be absorbed within existing resources.

The bill would take effect on September 1, 2005.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

601 Department of Transportation

LBB Staff:

JOB, JRO, TG