Supplement: TX HB1105 | 2021-2022 | 87th Legislature | Fiscal Note (House Committee Report)
For additional supplements on Texas HB1105 please see the Bill Drafting List
Bill Title: Relating to the vehicles authorized to be equipped with a digital license plate.
Status: 2021-04-19 - Referred to Transportation [HB1105 Detail]
Download: Texas-2021-HB1105-Fiscal_Note_House_Committee_Report_.html
Bill Title: Relating to the vehicles authorized to be equipped with a digital license plate.
Status: 2021-04-19 - Referred to Transportation [HB1105 Detail]
Download: Texas-2021-HB1105-Fiscal_Note_House_Committee_Report_.html
| TO: |
Honorable Terry Canales, Chair, House Committee on Transportation |
| FROM: |
Jerry McGinty, Director, Legislative Budget Board
|
| IN RE: |
HB1105 by Paddie (relating to the vehicles authorized to be equipped with a digital license plate.), Committee Report 1st House, Substituted |
Estimated Two-year Net Impact to General Revenue Related Funds for HB1105, Committee Report 1st House, Substituted : 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 to General Revenue Related Funds |
|---|---|
| 2021 | $0 |
| 2022 | $0 |
| 2023 | $0 |
| 2024 | $0 |
| 2025 | $0 |
| 2026 | $0 |
All Funds, Six-Year Impact:
| Fiscal Year | Probable Savings/(Cost) from Texas Department of Motor Vehicles Fund 10 | Probable Revenue Gain/(Loss) from Texas Department of Motor Vehicles Fund 10 |
|---|---|---|
| 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.
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.
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: | 304 Comptroller of Public Accounts, 405 Department of Public Safety, 608 Department of Motor Vehicles |
| LBB Staff: | JMc, AAL, TG, MB |
