LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION
 
April 9, 2007

TO:
Honorable Mike Krusee, Chair, House Committee on Transportation
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
HB2303 by Talton (Relating to issuance of a buyer's identification card for purchase of nonrepairable and salvage motor vehicles.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB2303, As Introduced: a positive impact of $950,350 through the biennium ending August 31, 2009.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2008 $455,175
2009 $495,175
2010 $495,175
2011 $495,175
2012 $495,175




Fiscal Year Probable Revenue Gain from
GENERAL REVENUE FUND
1
2008 $455,175
2009 $495,175
2010 $495,175
2011 $495,175
2012 $495,175

Fiscal Analysis

The bill would amend the Transportation Code and the Occupations Code to require the issuance of a buyer's identification card for the purchase of nonrepairable and salvage motor vehicles. The bill would establish nonrefundable buyer's identification card application fees of $25 for salvage vehicle dealers, metal recyclers, and buyers at a casual sale; $200 for an out-of-state buyer who is a resident of the United States; and $500 for an out-of-state buyer who is not a resident of the United States. The bill would specify that a buyer's identification card expires one year after the date of issuance and may be renewed annually before the expiration date on payment of the appropriate fee prescribed by the bill.

The bill would take effect on September 1, 2007.


Methodology

Based on the information and analysis provided by the Texas Department of Transportation, it is assumed buyer's identification card applications and fees paid by 2,207 salvage vehicle dealers and metal recyclers ($25 each) and 2,000 out-of-state U.S. residents ($200 each) would result in a $455,175 gain to the General Revenue Fund in 2008. Based on the analysis of TxDOT, it is assumed the number of salvage vehicle dealer and metal recycler applications would remain constant, and the number of out-of-state U.S. resident applicants would increase by 10 percent (200 applications) in 2009 and remain constant in subsequent years, which would result in an estimated $495,175 gain to the General Revenue Fund in 2009 and in each year thereafter. This analysis does not estimate the number license applications from casual sale buyers or out-of-state buyers who are are not U.S. residents. It is assumed any costs or duties associated with implementing the provisions of the bill could be absorbed within the agency's existing resources.


Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
304 Comptroller of Public Accounts, 601 Department of Transportation
LBB Staff:
JOB, KJG, MW, TG