Bill

SB 1512

84(R) - 2015
Senate Finance
Senate Finance
Appropriations
Transportation & Infrastructure

Vote Recommendation

Yes
  • Neutral
  • Neutral
  • Neutral
  • Positive
  • Neutral

Author(s)

Kelly Hancock

Bill Caption

Relating to the Texas Department of Motor Vehicles fund.

Fiscal Notes

A fiscal note dated April 15, 2015 anticipates an estimated two-year negative net impact to General Revenue Related Funds of $126,812,000 through the biennium ending August 31, 2017 for CSSB 1512.

5/20/15 update:

The House committee substitute version makes specific the amount of revenue collected by the $1 automated vehicle registration fee between 2009 and 2013: $23 million from General Revenue. The Senate engrossed version took a non-specific amount from that same period from the State Highway Fund. 

The Senate analysis factored a gain to the TxDMV Fund of $123.9 million beginning in fiscal year 2016, which would increase by approximately 2 percent each year after; whereas the House committee substitute anticipates a TxDMV Fund gain of $126.8 million beginning in fiscal year 2017, plus that same 2 percent per year figure -- a difference of $2.9 million in projections of prior revenue from the $1 automation fee.

Bill Analysis

Senate Bill 1512 would re-create the Texas Department of Motor Vehicles fund initially created during the 83rd Legislature.

HB 2202 in 2013 established the Texas Department of Motor Vehicles Fund as a dedicated fund, separate from the General Revenue Fund and the State Highway Fund. This bill directed certain fees collected by the TxDMV (including fees related to titling and registration of vehicles, issuance of license plates, registration and regulation of commercial vehicles, and issuance of disabled parking placards) but diverted from the State Highway Fund to the newly created TxDMV Fund. We supported HB 2202.

The Fund was designed to consist of money appropriated by the Legislature to the Department of Motor Vehicles as well as gifts, grants, and donations received by the DMV, money required by law to be deposited to the fund, and interest earned on money in the fund. Money in the TxDMV Fund could have been used only to support the operations of the DMV, accounting costs and related liabilities for the fund, including employee benefits.

Funds Consolidation bill HB 6 (83rd Legislature) did not exempt the Texas Department of Motor Vehicles Fund from its provisions though. Hence the fund was abolished.

Senate Bill 1512 would recreate the fund and rededicate the revenues dedicated by HB 2202. If passed, the act would take effect on September 1, 2016.

Vote Recommendation Notes

5/20/15 update:

See changes in fiscal note above. We continue to support this bill.

First chamber analysis:

Senate Bill 1512 would bring more transparency to the appropriations process and would make sure the fees collected by TxDMV would go to the purpose they were collected for. Because it fosters transparency, Senate Bill 1512 fosters a limited government. We support Senate Bill 1512.