LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION April 8, 2015 TO: Honorable Joseph Pickett, Chair, House Committee on Transportation FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB4115 by Pickett (Relating to the Texas Department of Motor Vehicles fund.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB4115, As Introduced: a negative impact of ($250,722,000) 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.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
April 8, 2015
TO: Honorable Joseph Pickett, Chair, House Committee on Transportation FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB4115 by Pickett (Relating to the Texas Department of Motor Vehicles fund.), As Introduced
TO: Honorable Joseph Pickett, Chair, House Committee on Transportation
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB4115 by Pickett (Relating to the Texas Department of Motor Vehicles fund.), As Introduced
Honorable Joseph Pickett, Chair, House Committee on Transportation
Honorable Joseph Pickett, Chair, House Committee on Transportation
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB4115 by Pickett (Relating to the Texas Department of Motor Vehicles fund.), As Introduced
HB4115 by Pickett (Relating to the Texas Department of Motor Vehicles fund.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB4115, As Introduced: a negative impact of ($250,722,000) 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.
Estimated Two-year Net Impact to General Revenue Related Funds for HB4115, As Introduced: a negative impact of ($250,722,000) 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.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2016 ($123,910,000) 2017 ($126,812,000) 2018 ($129,348,000) 2019 ($131,935,000) 2020 ($134,574,000)
2016 ($123,910,000)
2017 ($126,812,000)
2018 ($129,348,000)
2019 ($131,935,000)
2020 ($134,574,000)
All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromState Highway Fund6 Probable Revenue Gain/(Loss) fromTexas Department of Motor Vehicles Fund 2016 ($123,910,000) ($84,418,000) $208,328,000 2017 ($126,812,000) $0 $126,812,000 2018 ($129,348,000) $0 $129,348,000 2019 ($131,935,000) $0 $131,935,000 2020 ($134,574,000) $0 $134,574,000
Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromState Highway Fund6 Probable Revenue Gain/(Loss) fromTexas Department of Motor Vehicles Fund 2016 ($123,910,000) ($84,418,000) $208,328,000 2017 ($126,812,000) $0 $126,812,000 2018 ($129,348,000) $0 $129,348,000 2019 ($131,935,000) $0 $131,935,000 2020 ($134,574,000) $0 $134,574,000
2016 ($123,910,000) ($84,418,000) $208,328,000
2017 ($126,812,000) $0 $126,812,000
2018 ($129,348,000) $0 $129,348,000
2019 ($131,935,000) $0 $131,935,000
2020 ($134,574,000) $0 $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, 2015, to deposit to the credit of the TxDMV Fund an amount from the State Highway Fund (SHF) equal to the amount collected or received by DMV under Section 502.356, Transportation Code, relating to the automated registration and title system, during the period beginning November 1, 2009, and ending September 1, 2013. The bill would take effect on September 1, 2015.
Methodology
Based on the information provided by the DMV and the Comptroller's office, it is assumed the re-enactment 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 $123.9 million beginning in fiscal year 2016, which would increase by approximately two percent each year thereafter. The DMV reports that $84.4 million in revenue was collected from the $1 automation fee under Section 502.356, Transportation Code, during the period beginning November 1, 2009, and ending September 1, 2013. Therefore, it is assumed the Comptroller would make a one-time transfer of $84.4 million out of the SHF to the TxDMV Fund in fiscal year 2016.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, 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, AG, NV, TG, KK
UP, AG, NV, TG, KK