LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 1, 2001
  
  
          TO:  Honorable Ron Wilson, Chair, House Committee on Licensing
               & Administrative Procedures
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1558  by Averitt (Relating to the regulation of certain
               warrantors of vehicle protection products;  providing
               penalties.), As Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill requires the Texas Department of Licensing and Regulation (TDLR)
to regulate vehicle protection product warrantors and provides for
administrative penalties. The provisions of the bill establish a six
member Vehicle Protection Product Warrantor Advisory Board, which advises
the commissioner on adopting rules and setting fees.

TDLR estimates that $2,400 per year would cover the board's travel
expenditures.

The bill requires an annual registration fee not to exceed $2,500 as set
by the commission.  Fee structures shall be tiered based on the number of
vehicle protection products sold.

It is assumed that TDLR would set fees to offset any costs associated
with implementation of the bill.  TDLR estimates that there would be
twenty-five registrants and within a three tier fee structure.  The
first tier includes 15,000 or more warranties sold, tier two would range
from 7,500 to 14,999, and tier three would range from 1 to 7,499
warranties sold.
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   454   Texas Department of Insurance, 302   Office of
                   the Attorney General, 452   Texas Department of
                   Licensing and Regulation
LBB Staff:         JK, JO, DE