According to the Legislative Budget Board (LBB), SB 1113 is not expected to have a significant fiscal impact on the state. The Texas Department of Motor Vehicles (TxDMV), which would be responsible for implementing the changes authorized by the bill, has indicated that any administrative or operational costs incurred as a result of the bill could be absorbed within its existing budget and staffing levels.

The bill modifies licensing requirements for certain holders of a converter’s license located in specific border counties. While this change could theoretically reduce the number of additional licenses issued and the associated fee revenue, the fiscal note does not anticipate this to materially affect state revenue streams. The limited geographic scope of the bill likely minimizes any such impact.

Furthermore, the legislation is not expected to have any fiscal impact on local governments. Since the licensing and regulation of motor vehicle dealers and converters is handled at the state level through TxDMV, local governments would not bear any new responsibilities or costs resulting from this change in statute.

In conclusion, SB 1113 is considered fiscally neutral for both state and local governments, with administrative needs expected to be handled within current resource allocations.

SB 1113 is a narrowly tailored piece of legislation that seeks to resolve longstanding ambiguity around licensing requirements for holders of converter licenses in Texas. The bill clarifies that such individuals or businesses operating in certain geographically defined counties—those bordered by a river and two other states—may sell new motor vehicles they convert or trailers/semitrailers they manufacture directly to retail customers without having to obtain an additional motor vehicle dealer’s license or a general distinguishing number. According to the bill analysis, this exemption is designed to reflect and reinforce common practice that has existed for nearly 80 years, thus restoring clarity and legal alignment with real-world business operations.

The bill supports core liberty principles. It upholds Free Enterprise by removing unnecessary regulatory hurdles that limit the ability of converters to operate efficiently in limited rural markets. It promotes Limited Government by eliminating duplicative licensure requirements without compromising consumer protection. Importantly, the committee substitute ensures that all converters utilizing the exemption remain subject to the legal responsibilities of a "dealer" under both the Occupations and Transportation Codes, which preserves accountability and protects consumers.

From a fiscal standpoint, the LBB determined that the bill would not impose any significant cost to the state and would have no impact on local governments. Any administrative adjustments required by the Texas Department of Motor Vehicles could be absorbed with existing resources. Additionally, the bill grants no new rulemaking authority and avoids broad deregulation by limiting its scope to a few specific counties.

In light of its precise drafting, regulatory clarity, respect for business freedom, and fiscal neutrality, SB 1113 earns a strong recommendation for passage. It exemplifies targeted, practical reform consistent with constitutional values and good governance. Texas Policy Research recommends that lawmakers vote YES on SB 1113.

• Individual Liberty: The bill enhances individual liberty by removing bureaucratic barriers for licensed converters in specific Texas border counties. It respects the right of business owners to operate freely without being burdened by redundant state licensing requirements—especially when they are already properly licensed and qualified to conduct their work.
• Personal Responsibility: By allowing converters to sell directly without extra licensure—but still holding them accountable as dealers—the bill upholds the principle that individuals should take responsibility for their commercial conduct. It trusts businesses to act lawfully while ensuring they remain liable for compliance with vehicle sales laws.
• Free Enterprise: This is where the bill has its strongest effect. SB 1113 promotes free enterprise by removing a government-imposed obstacle that makes it harder for small businesses to compete in the marketplace. It empowers Texas-based converters to expand their customer reach without unnecessary regulatory costs, encouraging entrepreneurship and innovation.
• Private Property Rights: By easing the rules around selling vehicles they’ve converted or manufactured, the bill reinforces the idea that business owners should have the freedom to control and sell what they own. It affirms their right to benefit from the value they’ve added to a product without excessive state interference.
• Limited Government: SB 1113 embodies limited government by narrowing the scope of state licensing mandates. It eliminates duplicative oversight in a specific context, while still preserving regulatory safeguards where needed. The bill’s geographic targeting also prevents overreach, ensuring the reform is localized rather than sweeping.