LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 5, 1995



 TO:     Honorable Clyde Alexander, Chair       IN RE:  House Bill No. 2599
         Committee on Transportation                    By: Kubiak
         House of Representatives
         Austin, Texas







FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
2599 (Relating to the licensing and regulation of certain persons
dealing in salvage vehicles and parts; providing criminal
penalties.) 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 persons wanting to act as an
automobile recycler or salvage vehicle dealer hold a salvage
vehicle dealer license, for those in state, and for those not
residing in the state an out-of-state salvage vehicle dealer
license. The bill would allow an applicant who applies for a
salvage vehicle dealer license to have an endorsement in one of
seven classifications.

The Department of Transportation would be required to develop an
application for issuance of the licenses and, with the Texas
Transportation Commission, be responsible for the application of
the Act.  In addition, the bill would allow the Commission to set
application, license, renewal and other fees, as required by the
Act, in amounts reasonable and necessary for implementation.

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 Cost Out   Probable Revenue      Change in    
             Year   of  State Highway    Gain to State     Number of State 
                         Fund 006       Highway Fund 006    Employees from 
                                                               FY 1995     
                                                                           
          1996                $431,356           $420,700              13.0
          1997                  96,608            153,255               3.0
                                                                           
          1998                  96,608            153,255               3.0
                                                                           
          1999                  96,608            153,255               3.0
          2000                  90,598            153,255               3.0
                                                                           
                                                                           
                                                                           
       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.

No fiscal implication to units of local government is
anticipated.


Source:   Department of Transportation
          LBB Staff: JK, ML, DF