This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0571 - Redefines Salvage Motor Vehicles & Titling Method
L.R. NO. 2180-01
BILL NO. SB 571
SUBJECT: Motor Vehicles
TYPE: Original
DATE: January 19, 1996
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
Highway Fund $0 $0 $0
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1997 FY 1998 FY 1999
Local Government Unknown Unknown Unknown
FISCAL ANALYSIS
ASSUMPTION
Officials of the Department of Revenue (DOR) state that the Motor Vehicle
Bureau (MVB) would require at least one Branch Office Clerk and expense and
equipment to open and process an estimated 20,000 "stolen vehicle
certificates of title" and to respond to telephone inquiries and process
rejected title applications. The Bureau issued 51,353 salvage titles in FY
95. They assume a rejection rate of 25% for the first year and 10%
thereafter resulting in 12,838 rejected title applications the first year and
5,135 rejects annually thereafter. MVB estimated the costs for processing
these rejects would be: $41,727 in FY 97; $37,661 in FY 98 and $38,557 in FY
99.
MVB stated that additional resources would be requested if section 301.020,
subsection 4 of the proposal requires a separate notarized form other than
the bill of sale since more rejects would be anticipated from title
applications not accompanied by the extra properly notarized form.
DOR noted that the new definitions of "salvage" and "prior salvage" could
increase the volume of transactions. The number of additional FTE that would
be required would be dependent upon the volume of additional work generated
by these changes. The Department has no information upon which to base an
estimate of such volume; therefore, DOR has an unknown administrative impact.
Information Systems Division would have State Data Center costs of $1,655 in
FY 97.
REVENUE IMPACT:
DOR stated that due to the change in the definition of "salvage vehicle", it
is unknown whether the number of salvage titles would increase or decrease;
therefore, the revenue impact to the Highway Fund is unknown.
For purposes of this fiscal note, Oversight assumes the reject rate of
anticipated processed documents may not be the 25% as stated by DOR since
actual numbers are unknown. Oversight assumes the "unknown" income from fees
for additional salvage and prior salvage vehicle transactions would equal any
possible additional expenses of this proposal, thus netting out to a zero
fiscal impact to state funds.
FISCAL IMPACT - State Government FY 1997 FY 1998 FY 1999
(10 Mo.)
HIGHWAY FUND
Income - Department of Revenue Unknown Unknown Unknown
Cost - Department of Revenue Unknown Unknown Unknown
ESTIMATED NET EFFECT ON
HIGHWAY FUND $0 $0 $0
FISCAL IMPACT - Local Government FY 1997 FY 1998 FY 1999
(10 Mo.)
Local Funds Unknown Unknown Unknown
DESCRIPTION
This proposal revises several definitions for salvage vehicles, changes,
procedures for branding of prior salvage vehicles, establishes "stolen"
vehicle titles, changes procedures for insurance companies to obtain titles
under contracts of insurance and requires the type of damage to be shown on
salvage titles.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Department of Revenue