LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                                May 1, 2001
  
  
          TO:  Honorable Florence Shapiro, Chair, Senate Committee on
               State Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1678  by Bosse (Relating to nonrepairable and salvage
               motor vehicles.), As Engrossed
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would amend the Transportation Code by prohibiting the
rebuilding of a motor vehicle for which a Nonrepairable Certificate of
Title (NCT) has been issued.  The bill would repeal the issuance of a
certificate of title for a rebuilt nonrepairable vehicle and the ability
for the Department of Public Safety (DPS) to collect a fee for inspecting
a nonrepairable vehicle and providing a certificate.  The bill would
establish guidelines and requirements for the NCT and would require the
certificate to contain specific language.

The bill would also create an out-of-state buyers license and would
authorize the Texas Department of Transportation (TxDOT) to serve as the
issuer.  The bill would establish the criteria and fee for obtaining a
license and would require that licenses be renewed annually.  The bill
would prohibit an out-of-state buyer from purchasing a salvage motor
vehicle or a nonrepairable motor vehicle in the state without a license.
The bill would also allow a licensed salvage vehicle dealer to sell late
model salvage vehicles to an individual.

The bill would take effect September 1, 2002, except for the section
relating to out-of-state buyers licenses, which would take effect March
1, 2002.

No significant costs are anticipated by DPS or TxDOT related to
implementing the provisions of the bill.  An insignificant revenue loss
is anticipated for the General Revenue fund in amounts of $76,238 for
fiscal year 2002 and $53,017 for fiscal year 2003.  Similarly, an
insignificant revenue loss for State Highway Fund 006 is also
anticipated in the amount of $114,724 in fiscal year 2002 and $118,766
in fiscal year 2003.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   601   Texas Department of Transportation, 405   Texas
                   Department of Public Safety
LBB Staff:         JK, RB, JO, RT, MW