| TO: | Honorable Joseph Pickett, Chair, House Committee on Transportation |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | SB1616 by Wentworth (Relating to the fees for certain license plates.), As Engrossed |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2010 | $40,002 |
| 2011 | $40,002 |
| 2012 | $40,002 |
| 2013 | $40,002 |
| 2014 | $40,002 |
| Fiscal Year | Probable Revenue Gain/(Loss) from General Revenue Fund 1 |
Probable Revenue Gain/(Loss) from State Highway Fund 6 |
|---|---|---|
| 2010 | $40,002 | ($40,002) |
| 2011 | $40,002 | ($40,002) |
| 2012 | $40,002 | ($40,002) |
| 2013 | $40,002 | ($40,002) |
| 2014 | $40,002 | ($40,002) |
The bill would amend various provisions of the Transportation Code related to fees for specialty license plates.
SECTION 1 of the bill would specify that the fee for a souvenir license plate issued before September 1, 2009, is $40; and the fee for a souvenir license plate issued after that date would be an amount established by the Texas Transportation Commission (TTC) under Section 504.851 (c), Transportation Code, which is an amount necessary to recover certain contract costs and other direct and indirect costs to the Texas Department of Transportation (TxDOT).
SECTION 3 of the bill would specify that the $30 fee for specialty license plates for general distribution does not apply to a specialty license plate marketed and sold by a private vendor at the request of a sponsor under other provisions of the bill.
SECTION 5 of the bill would specify that the fee for certain specialty license plates created after September 1, 2009, would be an amount established by TTC under Section 504.851, Transportation Code.
SECTION 6 of the bill would authorize sponsors of certain specialty license plates created before September 1, 2009, to contract with the private vendor authorized by TxDOT for the marketing and sale of the specialty license plates. The fee for the plates would be the amount established by TTC under Section 501.851(c), Transportation Code: fees remaining after the deduction of TxDOT administrative costs would be deposited to the credit of a specialty license plate fund, if the sponsor nominated a state agency to receive the funds; or otherwise to the State Highway Fund.
SECTION 8: The bill would set the fee for the issuance of a personalized license plate issued before September 1, 2009, at $40, unless the director [or TTC] adopts a higher fee by rule.
SECTION 9: The bill would repeal Section 504.101, Transportation Code, relating to the issuance of personalized license plates, which establishes a $40 fee for the issuance personalized plates ($30 for replacement plates) and dedicates $1.25 of each fee for TxDOT administrative costs and requires the remainder of each fee to be deposited to the General Revenue Fund. The bill would also repeal Section 504.851 (m), which requires personalized and souvenir license plate fees collected in excess of amounts for TxDOT administrative costs and contract costs to be deposited to the General Revenue Fund.
Based on the information provided by TxDOT, it is assumed the provisions of the bill would result in the deposit of revenue to the General Revenue Fund rather than the State Highway Fund from fees collected on four specialty license plates issued by the department for which no state agency has been designated as a recipient of the fees (less deductions for TxDOT administrative costs).
Based on the analysis of the TxDOT, it is assumed any costs or duties associated with implementing the provisions of the bill would be absorbed within the agency's existing resources.
| Source Agencies: | 601 Department of Transportation, 304 Comptroller of Public Accounts
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| LBB Staff: | JOB, KJG, MW, TG
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