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