LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              March 31, 1999
  
  
          TO:  Honorable Florence Shapiro, Chair, Senate Committee on
               State Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB1598  by Cain (Relating to nonrepairable and salvage
               motor vehicles.), As Introduced
  
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*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB1598, As Introduced:  positive impact of $0 through the biennium    *
*  ending August 31, 2001.                                               *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
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General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2000                                   $0  *
          *       2001                                    0  *
          *       2002                                    0  *
          *       2003                                    0  *
          *       2004                                    0  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
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*Fiscal      Probable Cost from State     Probable Revenue Gain to State  *
* Year             Highway Fund                    Highway Fund           *
*                      0006                            0006               *
*  2000                        $(285,945)                        $472,000 *
*  2001                                 0                         112,000 *
*  2002                                 0                         112,000 *
*  2003                                 0                         112,000 *
*  2004                                 0                         112,000 *
***************************************************************************
  
Fiscal Analysis
  
The bill would require the Texas Department of Transportation, TxDot, in
lieu of issuance of a Texas Salvage Certificate, to issue a voluntary
Salvage or Nonrepairable Certificate of Title.  The bill also requires
the department to issue an Out-of-state Buyers License.
  
  
Methodology
  
TxDot estimated that the average number of salvage certificates issued is
80,000 per year.  TxDot assumed that for FY 2000-FY 2004, 50 percent, or
40,000, additional Salvage or Nonrepairable Certificates of Title, at a
processing fee of $3, would be issued in lieu of a Salvage Certificate.

The department also estimated that, during the first year of
implementation, approximately 2,000 out-of-state buyers would apply for
and be issued an Out-of-state Buyer license.  In subsequent years, TxDot
estimated that 10 percent of that number, or 200, would apply and be
issued licenses.  The nonrefundable fee for application and issuance of
an Out-of-state Buyers License is $200.  Pursuant to provisions of the
bill, the department included programming costs for modification of the
automated Registration and Titling system.
  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   
LBB Staff:         JK, SD, ML