LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6445 NOTE PREPARED: Dec 14, 2023
BILL NUMBER: SB 65 BILL AMENDED:
SUBJECT: Salvage Motor Vehicles.
FIRST AUTHOR: Sen. Tomes BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill allows an automotive salvage recycler to purchase, accept, or dispose
of a motor vehicle without a certificate of authority if: (1) the motor vehicle is at least 15 model years old;
(2) the motor vehicle is solely intended for dismantling or wrecking for the recovery of scrap metal or the
sale of parts; and (3) the automotive salvage recycler records all required information.
The bill also sets forth reporting requirements for automotive salvage recyclers.
Effective Date: July 1, 2024.
Explanation of State Expenditures: The bill will decrease BMV workload to process certificate of
authority requests.
Explanation of State Revenues: Summary - This bill is expected to decrease State Highway Fund revenue
by approximately $40,200 per year beginning in FY 2025.
Additional Information - The bill would allow motor vehicles that meet certain requirements to be purchased
by an automotive salvage recycler without a certificate of authority. This bill is expected to decrease the
number of certificate of authority requests made with the BMV.
Decreases in certificate of authority requests will decrease revenue to the Motor Vehicle Highway Account
(MVHA) from the $4 application fee. The BMV reports that between FY 2021 and FY 2023, an average of
approximately 16,200 requests for certificates of authority for junk vehicles were received, generating
approximately $64,800 in revenue to the MVHA per year.
SB 65 1 The MVHA distributes 62% of revenue collections to the State Highway Fund, with the remaining 38%
distributed to local units of government through the MVHA funding formula.
Penalty Provision: A person who sells or disposes of a vehicle with a salvage recycler without providing a
certificate of authority commits a Class C misdemeanor. If fewer court cases occur and less fines are
collected, revenue to both the Common School Fund and the state General Fund would decrease. The
maximum fine for a Class C misdemeanor is $500. Criminal fines are deposited in the Common School
Fund.The total fee revenue per case would range between $113 and $135. The amount of court fees deposited
will vary depending on whether the case is filed in a court of record or a municipal court. The following
linked document describes the fees and distribution of the revenue: Court fees imposed in criminal, juvenile,
and civil violation cases.
Explanation of Local Expenditures: Penalty Provision: This bill could reduce county jail expenditures by
a small amount. A Class C misdemeanor is punishable by up to 60 days in jail. The average cost per day to
incarcerate a prisoner is approximately $64.53 based on the per diem payments reported by U.S. Marshals
to house federal prisoners in 11 county jails across Indiana during CY 2021.
Explanation of Local Revenues: This bill is expected to decrease MVHA distributions to local units of
government by approximately $24,600 per year beginning in FY 2025.
Penalty Provision: If fewer court actions occur, less revenue will be collected by certain local units. If the
case is filed in a court of record, the county general fund would receive $47.40 and qualifying municipalities
would receive a share of $3.60. If the case is filed in a municipal court, the county would receive $30, and
the municipality would receive $46. The following linked document describes the fees and distribution of
the revenue: Court fees imposed in criminal, juvenile, and civil violation cases.
State Agencies Affected: BMV, INDOT.
Local Agencies Affected: Counties, municipalities, trial courts, local law enforcement agencies.
Information Sources: BMV Certificate of Authority Application Checklist; BMV State Form 55018; Cody
Eckart, BMV.
Fiscal Analyst: Bill Brumbach, 317-232-9559.
SB 65 2