LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION

April 12, 2005

TO:	Honorable Todd Staples, Chair, Senate Committee on Transportation & Homeland Security
FROM:	John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:	SB850 by Shapleigh (Relating to an exemption from the required payment of a motor vehicle registration renewal fee for certain military personnel.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for SB850, As Introduced: a negative impact of ($280,000) through the biennium ending August 31, 2007.

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
2006	($140,000)
2007	($140,000)
2008	($140,000)
2009	($140,000)
2010	($140,000)

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain/(Loss) from GENERAL REVENUE FUND 1	Probable Revenue Gain/(Loss) from STATE HIGHWAY FUND 6
2006	($140,000)	($280,000)
2007	($140,000)	($280,000)
2008	($140,000)	($280,000)
2009	($140,000)	($280,000)
2010	($140,000)	($280,000)

Fiscal Analysis

The bill would exempt certain members of the Texas National Guard, Texas State Guard, or military reserve on active duty from payment of the motor vehicle registration renewal fee and other related fees for one motor vehicle.

The bill would take effect September 1, 2005.

Methodology

Based on an estimated that 7,000 soldiers that could qualify for the exemption and an average registration cost of $60, of which $20 is deposited to General Revenue and $40 is deposited to the State Highway Fund, the Comptroller of Public Affairs estimates a revenue loss to General Revenue of $140,000 each fiscal year, and a revenue loss to the State Highway Fund of $280,000 each fiscal year.

It is anticipated that any administrative costs associated with the bill could be absorbed within the Texas Department of Transportation's existing resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts, 405 Department of Public Safety, 601 Department of Transportation

LBB Staff:

JOB, SR, MW, RB, KJG