| TO: | Honorable John Carona, Chair, Senate Committee on Transportation & Homeland Security |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB481 by Jackson, Jim (Relating to the transfer of a used motor vehicle.), As Engrossed |
The bill would amend the Transportation Code to require the Texas Department of Transportation (TxDOT) to establish procedures that permit the transferor of a motor vehicle to electronically submit a notice of transfer to the department through TxDOT’s Internet website. The bill would also amend the Transportation Code to provide increased fees for late filings of applications for transfers of vehicle registrations in the amount of $25 (or $10 if the transferee holds a general distinguishing number) if the application is filed on the 21st working day or between the 21st and 31st working day from the date registration receipt and certificate of title documents are received by the transferee and an additional $25 for each subsequent 30-day period or portion of a 30-day period in which the application is not filed. The bill would specify that a county assessor-collector may retain half of each late fee and each additional penalty. The bill would specify that $10 out of each fee received by TxDOT from a person who does not hold a general distinguishing number may be used only to fund a statewide public awareness campaign designed to inform and educate the public about the provisions of the bill. The bill would provide certain exemptions for motor vehicles eligible to be issued classic or antique license plates and provide extended application deadlines for members of the United States armed forces, National Guard, or a person serving on active duty under the order of the President of the United States.
This analysis does not estimate the amount of revenues that would be collected from late application penalty fees pursuant to the provisions of the bill. TxDOT estimates that the new penalty fees would result in a revenue gain to the State Highway Fund of approximately $2.0 million per fiscal year. Based on the analysis of TxDOT it is assumed that penalty fees received by the department would be sufficient to cover the costs to the agency for implementing the statewide awareness campaign, and any additional costs or duties associated with implementing the provisions of the bill could be absorbed within existing resources. It is also assumed that penalty fee revenues collected and deposited to the State Highway Fund in excess of amounts expended for the awareness campaign would be available for other transportation related expenditures.
The bill would take effect on January 1, 2008.
| Source Agencies: | 601 Department of Transportation
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| LBB Staff: | JOB, KJG, MW, TG
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