LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION March 16, 2021 TO: Honorable Terry Canales, Chair, House Committee on Transportation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1105 by Paddie (Relating the authorization of digital license plates.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1105, As Introduced : an impact of $0 through the biennium ending August 31, 2023. 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, Six- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2021$02022$02023$02024$02025$02026$0All Funds, Six-Year Impact: Fiscal Year Probable Savings/(Cost) fromTexas Department of Motor Vehicles Fund10 Probable Revenue Gain/(Loss) fromTexas Department of Motor Vehicles Fund102021($362,000)$02022$0$19,2852023$0$19,5702024$0$19,8552025$0$20,1402026$0$20,425 Fiscal AnalysisThe bill would amend Section 504.154 of the Transportation Code to remove restrictions regarding the eligibility for a registered vehicle to be equipped with a digital license plate.The bill would take effect immediately upon receiving a vote of two-thirds of all members elected to each house or otherwise on September 1, 2021.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
March 16, 2021
TO: Honorable Terry Canales, Chair, House Committee on Transportation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1105 by Paddie (Relating the authorization of digital license plates.), As Introduced
TO: Honorable Terry Canales, Chair, House Committee on Transportation
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB1105 by Paddie (Relating the authorization of digital license plates.), As Introduced
Honorable Terry Canales, Chair, House Committee on Transportation
Honorable Terry Canales, Chair, House Committee on Transportation
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB1105 by Paddie (Relating the authorization of digital license plates.), As Introduced
HB1105 by Paddie (Relating the authorization of digital license plates.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB1105, As Introduced : an impact of $0 through the biennium ending August 31, 2023. 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 HB1105, As Introduced : an impact of $0 through the biennium ending August 31, 2023. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
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, Six- Year Impact:
2021 $0
2022 $0
2023 $0
2024 $0
2025 $0
2026 $0
All Funds, Six-Year Impact:
2021 ($362,000) $0
2022 $0 $19,285
2023 $0 $19,570
2024 $0 $19,855
2025 $0 $20,140
2026 $0 $20,425
Fiscal Analysis
The bill would amend Section 504.154 of the Transportation Code to remove restrictions regarding the eligibility for a registered vehicle to be equipped with a digital license plate.The bill would take effect immediately upon receiving a vote of two-thirds of all members elected to each house or otherwise on September 1, 2021.
The bill would take effect immediately upon receiving a vote of two-thirds of all members elected to each house or otherwise on September 1, 2021.
Methodology
Under current law, passenger vehicles are not eligible to be equipped with a digital license plate unless the vehicle is part of a commercial fleet or is a government-owned vehicle with an exempt registration. The bill would remove these requirements. Based on the analysis provided by the Texas Department of Motor Vehicles (TxDMV), it is assumed TxDMV would incur a one-time technology cost of $362,000 from the TxDMV Fund No. 10 to implement programming to the agency's automated Registration Titling System and related systems to accommodate the expanded eligibility authorized by the bill.For the purposes of this analysis, it is assumed expanded eligibility for digital license plate issuance would begin in fiscal year 2022. Based on the analysis provided by TxDMV, it is assumed 203 additional digital license plates would be issued in fiscal year 2022, the number of digital plates issued would increase by 1.5 percent each fiscal year, and payment of a $95 administrative fee for each digital license plate issued would be remitted to TxDMV at the time of initial issuance and at the time of annual vehicle registration renewal, resulting in a revenue gain of $19,285 to the TxDMV Fund No. 10 beginning in fiscal year 2022.
For the purposes of this analysis, it is assumed expanded eligibility for digital license plate issuance would begin in fiscal year 2022. Based on the analysis provided by TxDMV, it is assumed 203 additional digital license plates would be issued in fiscal year 2022, the number of digital plates issued would increase by 1.5 percent each fiscal year, and payment of a $95 administrative fee for each digital license plate issued would be remitted to TxDMV at the time of initial issuance and at the time of annual vehicle registration renewal, resulting in a revenue gain of $19,285 to the TxDMV Fund No. 10 beginning in fiscal year 2022.
Technology
TxDMV anticipates a one-time technology cost of $362,000 for programming changes to its automated systems to implement the provisions of the bill.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 405 Department of Public Safety, 608 Department of Motor Vehicles
304 Comptroller of Public Accounts, 405 Department of Public Safety, 608 Department of Motor Vehicles
LBB Staff: b > td > JMc, AAL, MB, TG
JMc, AAL, MB, TG