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: Feb 29, 2024
BILL NUMBER: SB 65 BILL AMENDED: Feb 27, 2024
SUBJECT: Salvage Motor Vehicles.
FIRST AUTHOR: Sen. Tomes BILL STATUS: 2
nd
Reading - 2
nd
House
FIRST SPONSOR: Rep. Ledbetter
FUNDS AFFECTED:XGENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: This bill allows an automotive salvage recycler or an agent of an automotive
salvage recycler to apply for a certificate of authority for a motor vehicle on behalf of the seller with all
required information collected at the point of sale.
The bill sets forth reporting requirements for automotive salvage recyclers. It also requires notice to be
provided to the law enforcement agency with jurisdiction over an automotive salvage recycler's established
place of business if, when applying for a certificate of authority, the automotive salvage recycler or an agent
of the automotive salvage recycler learns: (1) the motor vehicle was reported stolen; or (2) the owner of the
motor vehicle does not match the individual who provided the automotive salvage recycler with the motor
vehicle.
Effective Date: July 1, 2024.
Explanation of State Expenditures: The bill could increase BMV workload to process certificate of
authority requests.
Explanation of State Revenues: Summary - The bill allows an automotive salvage recycler to apply for a
certificate of authority on the behalf of a seller. As a result, revenue to the State Highway Fund could
increase beginning in FY 2025 from the $4 application fee.
Additional Information - 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 Motor Vehicle Highway Account (MVHA) per year. The MVHA distributes 62%
SB 65 1 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 could increase MVHA distributions to local units of government
beginning in FY 2025. Actual increases in local MVHA distributions are unknown, but expected to be small.
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