LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION May 6, 2023 TO: Honorable DeWayne Burns, Chair, House Committee on Land & Resource Management FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB5067 by Bhojani (relating to a study by the General Land Office on the establishment and implementation by the General Land Office of a distributed ledger-based title registry pilot program.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for HB5067, Committee Report 1st House, Substituted : a negative impact of ($400,000) through the biennium ending August 31, 2025. 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 toGeneral Revenue Related Funds2024($400,000)2025$02026$02027$02028$0All Funds, Five-Year Impact: Fiscal Year Probable (Cost) fromGeneral Revenue Fund12024($400,000)2025$02026$02027$02028$0 Fiscal AnalysisThe bill would require the General Land Office and Veterans' Land Board (GLO) to conduct a study on establishing and implementing a distributed ledger-based title registry pilot program to record title transfers per identified goals and requirements in partnership with a working group consisting of representatives from counties, title insurance agents, title insurance companies, the banking industry, appropriate regulators, and the Texas Blockchain Council. The GLO would be required to adopt rules necessary to administer the study on a pilot program no later than October 1, 2023, and to submit a report to the Legislature on the findings of the study and any recommendations no later than January 1, 2025.The bill would expire on September 1, 2025.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
May 6, 2023
TO: Honorable DeWayne Burns, Chair, House Committee on Land & Resource Management FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB5067 by Bhojani (relating to a study by the General Land Office on the establishment and implementation by the General Land Office of a distributed ledger-based title registry pilot program.), Committee Report 1st House, Substituted
TO: Honorable DeWayne Burns, Chair, House Committee on Land & Resource Management
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB5067 by Bhojani (relating to a study by the General Land Office on the establishment and implementation by the General Land Office of a distributed ledger-based title registry pilot program.), Committee Report 1st House, Substituted
Honorable DeWayne Burns, Chair, House Committee on Land & Resource Management
Honorable DeWayne Burns, Chair, House Committee on Land & Resource Management
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB5067 by Bhojani (relating to a study by the General Land Office on the establishment and implementation by the General Land Office of a distributed ledger-based title registry pilot program.), Committee Report 1st House, Substituted
HB5067 by Bhojani (relating to a study by the General Land Office on the establishment and implementation by the General Land Office of a distributed ledger-based title registry pilot program.), Committee Report 1st House, Substituted
Estimated Two-year Net Impact to General Revenue Related Funds for HB5067, Committee Report 1st House, Substituted : a negative impact of ($400,000) through the biennium ending August 31, 2025. 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 HB5067, Committee Report 1st House, Substituted : a negative impact of ($400,000) through the biennium ending August 31, 2025. 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, Five- Year Impact:
2024 ($400,000)
2025 $0
2026 $0
2027 $0
2028 $0
All Funds, Five-Year Impact:
2024 ($400,000)
2025 $0
2026 $0
2027 $0
2028 $0
Fiscal Analysis
The bill would require the General Land Office and Veterans' Land Board (GLO) to conduct a study on establishing and implementing a distributed ledger-based title registry pilot program to record title transfers per identified goals and requirements in partnership with a working group consisting of representatives from counties, title insurance agents, title insurance companies, the banking industry, appropriate regulators, and the Texas Blockchain Council. The GLO would be required to adopt rules necessary to administer the study on a pilot program no later than October 1, 2023, and to submit a report to the Legislature on the findings of the study and any recommendations no later than January 1, 2025.The bill would expire on September 1, 2025.
Methodology
Based upon information provided by the GLO, this analysis assumes that the cost to the GLO to conduct the study on the establishment and implementation of a distributed ledger-based title registry pilot program per provisions of the bill would total $400,000 in General Revenue. The GLO indicates that it does not have a program area with the expertise or internal resources to conduct the study required and as such, would need to contract a Project Manager and a Business Analyst through an appropriate vendor to carry out the coordination, compilation of information, and research necessary to complete the study. The cost estimate included above in the table reflects $400,000 in fiscal year 2024 for contracted staff at a blended rate of $200 per hour for 2,000 hours. The agency indicates that its Asset Management division would provide input and guidance on the establishment of the rules to administer the study and the submission of the legislative report. It is assumed that the cost associated with dedicating these staff resources could be absorbed within existing resources.
Local Government Impact
The fiscal implication to local units of government cannot be determined because costs that would be realized by participating counties due to dedicating staff resources necessary to participate in the study working group is unknown.
The fiscal implication to local units of government cannot be determined because costs that would be realized by participating counties due to dedicating staff resources necessary to participate in the study working group is unknown.
Source Agencies: b > td > 305 General Land Office and Veterans' Land Board
305 General Land Office and Veterans' Land Board
LBB Staff: b > td > JMc, AF, MW, EJ, CMA, RCO, RP
JMc, AF, MW, EJ, CMA, RCO, RP