| TO: | Honorable Mike Krusee, Chair, House Committee on Transportation |
| FROM: | John Keel, Director, Legislative Budget Board |
| IN RE: | HB2709 by Gutierrez (Relating to nonrepairable and salvage motor vehicles and salvage vehicle dealers.), As Introduced |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2004 | ($374,000) |
| 2005 | ($183,000) |
| 2006 | ($116,000) |
| 2007 | ($48,000) |
| 2008 | $23,000 |
| Fiscal Year | Probable Revenue Gain/(Loss) fromGENERAL REVENUE FUND 1 |
Probable Revenue Gain/(Loss) fromSTATE HIGHWAY FUND 6 |
Probable Revenue Gain/(Loss) fromCounty Road and Bridge Funds |
|---|---|---|---|
| 2004 | ($374,000) | $3,945,000 | ($257,000) |
| 2005 | ($183,000) | $4,853,000 | ($317,000) |
| 2006 | ($116,000) | $4,974,000 | ($325,000) |
| 2007 | ($48,000) | $5,099,000 | ($333,000) |
| 2008 | $23,000 | $5,226,000 | ($341,000) |
TxDOT identified approximately 123,600 salvage certificates, 37,600 salvage certificates of title, and 28,300 non-repairable certificates of title, that would be eligible to pay the $15 application fee for a salvage certificate of title. Because TxDOT noted that about 40 percent of the requests for salvage certificates come from out-of-state, and the salvage certificates are currently issued at no cost, about 82,400 salvage certificates were removed from the calculation subject to the $15 fee, which would be deposited to the credit of the General Revenue Fund 0001.
TxDOT issued approximately 71,000 regular titles in fiscal 2002, in exchange for salvage certificates of title and non-repairable certificates of title. These exchanges would be subject to the $65 rebuilder fee to be deposited to the credit of Fund 0006. For fiscal 2004, the number of eligible exchanges for a regular title is estimated to be 74,600.
TxDOT estimates that two percent of the current salvage certificates issued that would no longer be issued under the bill, would represent the number of salvage certificates of title issued without the original title returned resulting in the collection of a $100 non-surrender fee. These fees would be retained by TxDOT and deposited to Fund 0006.
TxDOT estimates that approximately 2,000 out-of-state purchasers licenses would be issued annually at $200 each, along with 2,000 annual renewals at $200 each. The number of $25 Internet licenses that would be issued annually is unknown and cannot be estimated.
Currently, before a regular certificate of title can be issued for salvage motor vehicle, DPS must conduct a salvage inspection, for which a fee of about $150 is charged and deposited to Fund 0001. This bill would eliminate the inspection and the fee, resulting in a general revenue loss. In fiscal 2002, approximately $3.7 million was deposited to Fund 0001 from this source.
Counties receive approximately $20 for each motor vehicle registration processed, and $5 for each certificate of title processed. Beginning in fiscal 2004, it is estimated that 12,360 of these transactions would be lost because some non-repairable titles would no longer be eligible for titling or registration in the state.
It is anticipated that TXDOT could absorb any costs associated with the bill within current resources.
The Department of Public Safety indicates it could absorb any costs associated with the bill within current resources.
| Source Agencies: | 304 Comptroller of Public Accounts, 405 Department of Public Safety, 454 Department of Insurance, 601 Department of Transportation
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| LBB Staff: | JK, JO, RR, RT, RB
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