LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION April 2, 2013 TO: Honorable Tommy Williams, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1288 by Williams (Relating to the disposition of fees collected by or on behalf of the Texas Department of Motor Vehicles; authorizing fees.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB1288, As Introduced: an impact of $0 through the biennium ending August 31, 2015. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
April 2, 2013
TO: Honorable Tommy Williams, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:SB1288 by Williams (Relating to the disposition of fees collected by or on behalf of the Texas Department of Motor Vehicles; authorizing fees.), As Introduced
TO: Honorable Tommy Williams, Chair, Senate Committee on Finance
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: SB1288 by Williams (Relating to the disposition of fees collected by or on behalf of the Texas Department of Motor Vehicles; authorizing fees.), As Introduced
Honorable Tommy Williams, Chair, Senate Committee on Finance
Honorable Tommy Williams, Chair, Senate Committee on Finance
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
SB1288 by Williams (Relating to the disposition of fees collected by or on behalf of the Texas Department of Motor Vehicles; authorizing fees.), As Introduced
SB1288 by Williams (Relating to the disposition of fees collected by or on behalf of the Texas Department of Motor Vehicles; authorizing fees.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB1288, As Introduced: an impact of $0 through the biennium ending August 31, 2015. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for SB1288, As Introduced: an impact of $0 through the biennium ending August 31, 2015.
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 2014 $0 2015 $0 2016 $0 2017 $0 2018 $0
2014 $0
2015 $0
2016 $0
2017 $0
2018 $0
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromState Highway Fund6 Probable Revenue Gain/(Loss) fromTexas Department of Motor Vehicles Fund 2014 ($102,411,000) $102,411,000 2015 ($103,595,000) $103,595,000 2016 ($104,657,000) $104,657,000 2017 ($105,595,000) $105,595,000 2018 ($106,518,000) $106,518,000
Fiscal Year Probable Revenue Gain/(Loss) fromState Highway Fund6 Probable Revenue Gain/(Loss) fromTexas Department of Motor Vehicles Fund 2014 ($102,411,000) $102,411,000 2015 ($103,595,000) $103,595,000 2016 ($104,657,000) $104,657,000 2017 ($105,595,000) $105,595,000 2018 ($106,518,000) $106,518,000
2014 ($102,411,000) $102,411,000
2015 ($103,595,000) $103,595,000
2016 ($104,657,000) $104,657,000
2017 ($105,595,000) $105,595,000
2018 ($106,518,000) $106,518,000
Fiscal Analysis
The bill would amend the Transportation Code to create a new Texas Department of Motor Vehicles Fund (TxDMV Fund) in the State Treasury outside the General Revenue Fund. The fund would consist of money appropriated by the Legislature to the Department of Motor Vehicles (DMV); gifts, grants, and donations received by the DMV; money required to by law to be deposited to the fund; and interest earned on money in the fund. Money in the TxDMV Fund could be used only to support the operations of the DMVand accounting costs and related liabilities for the fund, including employee benefits. The bill would amend various provisions of the Transportation Code to direct certain fees or portions of fees currently deposited to the State Highway Fund (Fund 6) to the new TxDMV Fund, including fees related to the titling and registration of vehicles, issuance of license plates, registration and regulation of commercial vehicles, and the issuance of disabled parking placards. The bill would amend the Transportation Code to authorize the DMV to collect a fee set by board rule in addition to registration fees for the issuance of license plates or registration insignia to cover the expenses of collecting the registration fees. The bill would allow the county tax assessor-collector or the assessor-collectors contractor to retain a portion of the fee as provided by board rule, and the remainder would be deposited to the TxDMV Fund. The bill would amend Occupations Code, Chapter 2301, relating to the regulation of the sale or lease of motor vehicles, to require all fees collected by the board of the DMV under that chapter to be deposited to the TxDMV Fund instead of Fund 6. The bill would take effect on September 1, 2013.
The bill would amend the Transportation Code to create a new Texas Department of Motor Vehicles Fund (TxDMV Fund) in the State Treasury outside the General Revenue Fund. The fund would consist of money appropriated by the Legislature to the Department of Motor Vehicles (DMV); gifts, grants, and donations received by the DMV; money required to by law to be deposited to the fund; and interest earned on money in the fund. Money in the TxDMV Fund could be used only to support the operations of the DMVand accounting costs and related liabilities for the fund, including employee benefits. The bill would amend various provisions of the Transportation Code to direct certain fees or portions of fees currently deposited to the State Highway Fund (Fund 6) to the new TxDMV Fund, including fees related to the titling and registration of vehicles, issuance of license plates, registration and regulation of commercial vehicles, and the issuance of disabled parking placards. The bill would amend the Transportation Code to authorize the DMV to collect a fee set by board rule in addition to registration fees for the issuance of license plates or registration insignia to cover the expenses of collecting the registration fees. The bill would allow the county tax assessor-collector or the assessor-collectors contractor to retain a portion of the fee as provided by board rule, and the remainder would be deposited to the TxDMV Fund. The bill would amend Occupations Code, Chapter 2301, relating to the regulation of the sale or lease of motor vehicles, to require all fees collected by the board of the DMV under that chapter to be deposited to the TxDMV Fund instead of Fund 6.
The bill would take effect on September 1, 2013.
Methodology
Based on the information provided by the Comptroller's office, it is assumed the provisions of the bill would result in a revenue loss of $102.4 million from the State Highway Fund and a corresponding gain to the new Texas Department of Motor Vehicles Fund beginning in fiscal year 2014 and similar losses to Fund 6 and gains to the new fund would continue in each year thereafter. This analysis does not include an estimate of additional revenue to the state that would be deposited to the TxDMV Fund from the additional fee to be set by the board of the DMV for the issuance of license plates and registration insignia. Based on the information provided by the DMV, it is assumed any costs associated with implementing the provisions of the bill could be absorbed within existing resources.
Based on the information provided by the Comptroller's office, it is assumed the provisions of the bill would result in a revenue loss of $102.4 million from the State Highway Fund and a corresponding gain to the new Texas Department of Motor Vehicles Fund beginning in fiscal year 2014 and similar losses to Fund 6 and gains to the new fund would continue in each year thereafter. This analysis does not include an estimate of additional revenue to the state that would be deposited to the TxDMV Fund from the additional fee to be set by the board of the DMV for the issuance of license plates and registration insignia.
Based on the information provided by the DMV, it is assumed any costs associated with implementing the provisions of the bill could be absorbed within existing resources.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 601 Department of Transportation, 608 Department of Motor Vehicles
304 Comptroller of Public Accounts, 601 Department of Transportation, 608 Department of Motor Vehicles
LBB Staff: UP, KK, MW, TG
UP, KK, MW, TG