LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
 
May 18, 2015

TO:
Honorable Joseph Pickett, Chair, House Committee on Transportation
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
SB1512 by Hancock (Relating to the Texas Department of Motor Vehicles fund.), Committee Report 2nd House, Substituted



Estimated Two-year Net Impact to General Revenue Related Funds for SB1512, Committee Report 2nd House, Substituted: a negative impact of ($149,812,000) through the biennium ending August 31, 2017.

There would be a similar gain to Other Funds, in the Texas Department of Motor Vehicles Fund.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2016 $0
2017 ($149,812,000)
2018 ($129,348,000)
2019 ($131,935,000)
2020 ($134,574,000)




Fiscal Year Probable Revenue Gain/(Loss) from
General Revenue Fund
1
Probable Revenue Gain/(Loss) from
Texas Department of Motor Vehicles Fund
2016 $0 $0
2017 ($149,812,000) $149,812,000
2018 ($129,348,000) $129,348,000
2019 ($131,935,000) $131,935,000
2020 ($134,574,000) $134,574,000

Fiscal Analysis

The bill would re-enact the Texas Department of Motor Vehicles (TxDMV) Fund created by Section 1001.151, Transportation Code, and all revenue dedicated for deposit to the credit of that fund as enacted by Section 71, Chapter 1287 (HB 2202), Acts of the Eighty-third Legislature, Regular Session, 2013. The fund would be established as a special fund in the state treasury outside the General Revenue Fund. The bill would direct the Comptroller on September 1, 2016, to transfer $23 million from GR to the credit of the DMV fund re-created by this bill.
 
The bill would take effect on September 1, 2016.

Methodology

Based on the information provided by the Comptroller's office, it is assumed the reenactment of the TxDMV Fund and all revenue dedicated for deposit to the fund under the provisions of HB 2202, Eighty-third Legislature, 2013, would result in a revenue loss to General Revenue and a corresponding gain to the TxDMV Fund of $126.8 million beginning in fiscal year 2017, which would increase by approximately two percent each year thereafter. The bill would also require the transfer of an additional $23 million from the General Revenue Fund to the TxDMV Fund in fiscal year 2017.
 
Note: This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either with or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.

Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
304 Comptroller of Public Accounts, 608 Department of Motor Vehicles
LBB Staff:
UP, AG, NV, TG