LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
May 8, 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), Committee Report 1st House, Substituted
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB1598, Committee Report 1st House, Substituted: 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. *
**************************************************************************
General Revenue-Related Funds, Five-Year Net 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:
***************************************************************************
*Fiscal Probable Cost from State Probable Revenue Gain to State *
* Year Highway Fund Highway Fund *
* 0006 0006 *
* 2000 $(282,245) $357,000 *
* 2001 0 (3,000) *
* 2002 0 (3,000) *
* 2003 0 (3,000) *
* 2004 0 (3,000) *
***************************************************************************
Fiscal Analysis
The bill allows a licensed salvage vehicle dealer to sell late model
salvage vehicles, which have or have not been issued a Salvage
Certificate of Title or Nonrepairable Certificate of Title, to an
individual. The bill prohibits rebuilding of a vehicle for which a
Nonrepairable Certificate of Title has been issued and requires the
Nonrepairable Certificate of Title to contain language that the vehicle
may not be rebuilt, titled, or registered in this state, and may only be
used for parts or scrap metal. The bill also requires the department to
issue an Out-of-state Buyers License.
Methodology
The Texas Department of Transportation (TxDot) 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.
TxDot estimated that the elimination of rebuilding and re-titling of a
nonrepairable vehicle would result in a revenue loss of the title and
registration fees paid at the time of application for the rebuilt titles.
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: 601 Department of Transportation
LBB Staff: JK, SD, ML