LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                           May 11, 1995



 TO:     Honorable Ken Armbrister, Chair        IN RE:  House BillNo. 2151,
         Committee on State Affairs                           as engrossed
         Senate                                         By: Bosse
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
2151 (Relating to the issuance of titles to certain motor
vehicles; providing a penalty.) this office has determined the
following:

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 require that a domestic insurance company that
acquires ownership of a late model salvage motor vehicle through
payment of a claim shall surrender a properly assigned
certificate of title to the Department of Transportation. The
bill creates two additional title certificates, a salvage motor
vehicle certificate and a nonrepairable motor vehicle
certificate. An insurance company would not be able to sell a
motor vehicle until an appropriate certificate had been issued by
the Department. The bill would allow the Department to set a fee,
not to exceed an amount that was sufficient, when added to other
fees, to cover the actual costs to the Department for issuing the
certificates.

The bill would also require the Department of Public Safety to
inspect certain repaired vehicles for safety and parts
identification and provide a written statement of compliance. The
Department of Public Safety would be able to set a fee, in an
amount not to exceed the actual cost to the Department, for
conducting an inspection and providing the written statement.    




 


The probable fiscal implication of implementing the provisions of
the bill during each of the first  five years following passage
is estimated as follows:
     



          Fiscal   Probable Net  Probable Cost  Probable Cost    Probable    
             Year      Program        Out of         to Local    Revenue Gain
                      Savings to      General      Governments     to Local  
                    State Highway   Revenue Fund                 Governments 
                       Fund 006         001                                  
                                                                             
                                                                             
           1996           $12,960     $5,688,468       $127,803      $450,000
           1997            14,460      3,225,012         73,728       450,000
                                                                             
           1998            14,460      3,228,852         73,728       450,000
                                                                             
           1999            14,460      3,232,693         73,728       450,000
           2000            14,460      3,236,533         73,728       450,000
                                                                             
                                                                             
                                                                             
          Fiscal   Change in   
             Year    Number of 
                       State   
                     Employees 
                      from FY  
                       1995    
                               
           1996            42.0
           1997            42.0
                               
           1998            42.0
                               
           1999            42.0
           2000            42.0
                               
                               
                               

         Fiscal Year          Probable       Probable
                            Revenue Gain   Revenue Gain
                           from  General   from  State
                            Revenue Fund   Highway Fund
                                001            006
   1996                       $5,688,468       $750,000

   1997                        3,225,012       $750,000

   1998                        3,228,852       $750,000
   1999                        3,232,693       $750,000

   2000                        3,236,533       $750,000



  Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.


Source:   Comptroller of Public Accounts, Department of Public
Safety,
                         Department of Transportation
          LBB Staff: JK, ML, DF