LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session March 28, 1995 TO: Honorable Clyde Alexander, Chair IN RE: House Bill No. 2151 Committee on Transportation By: Bosse House of Representatives 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.) 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