TO:	Honorable Robert Nichols, Chair, Senate Committee on Transportation
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	SB261 by Springer (Relating to the definition of assembled vehicle.), As Introduced

The bill would amend Transportation Code, Section 731.004, to remove assembled trailer from the definition of assembled vehicle. 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, 2023.

Assembled trailers would no longer be eligible for titling and registration under the provisions of the bill. Under current law, assembled trailers are considered assembled vehicles and must be titled and registered. The applicable state titling and registration fees are $28 for an original title ($15 to the Texas Emissions Reduction Plan Trust Fund, $5 to the General Revenue Fund, $3 to Texas Department of Motor Vehicles Fund, and $5 to counties); $45 base vehicle registration fee (95 percent to the State Highway Fund, 5 percent to counties); and $4.75 processing and handling fee ($2.45 to the Texas Department of Motor Vehicles Fund and $2.30 to counties).

Based on the analysis provided by the Texas Department of Motor Vehicles (TxDMV) and the Comptroller of Public Accounts, it is assumed the bill would result in an insignificant revenue loss 

Local Government Impact

No significant fiscal implication to units of local government is anticipated.