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:
  
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*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