LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION
 
April 13, 2003

TO:
Honorable Mike Krusee, Chair, House Committee on Transportation
 
FROM:
John Keel, Director, Legislative Budget Board
 
IN RE:
HB1731 by Hamric (Relating to the movement of vehicles transporting ocean cargo shipping containers.), As Introduced



Estimated Two-year Net Impact to General Revenue Related Funds for HB1731, As Introduced: a positive impact of $205,000 through the biennium ending August 31, 2005.

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
2004 $102,500
2005 $102,500
2006 $102,500
2007 $102,500
2008 $102,500




Fiscal Year Probable Savings/(Cost) from
STATE HIGHWAY FUND
6 		Probable Revenue Gain from
GENERAL REVENUE FUND
1
2004 ($3,440,000) $102,500
2005 ($3,440,000) $102,500
2006 ($3,440,000) $102,500
2007 ($3,440,000) $102,500
2008 ($3,440,000) $102,500

Fiscal Analysis

The bill provides for the issuance of annual permits for the transport of overweight ocean cargo shipping containers for a distance not to exceed 75 miles from the point of loading to a container port or intermodal rail yard. According to the Department of Transportation (TxDOT), the gross weight limit would be increased from 80,000 lbs. to 90,000 lbs. and the bill would also increases tandem axle weight limit from 34,000 lbs. to 40,000 lbs. TxDOT indicates the permit fee would be $205 ($30 remitted to the state and $175 remitted to the counties).

The bill would take effect September 1, 2003.


Methodology

TxDOT indicates that approximately 500 miles of the highway system will be routinely traveled by the 90,000 pound permitted container trucks. TxDOT estimates that it would cost $3,440,000 in rehabilitation costs per year from State Highway Fund No. 006 based on $200,000 cost per mile times 17.2 additional miles. According to TxDOT, 17.2 miles is derived by calculating the amount of additional damage a 90,000 pound truck inflicts on pavement compared with an 80,000 pound truck. TxDOT indicates the normal life cycle of state and US highways will be shortened and therefore more miles of roadway will need to be repaired each year.

 

TxDOT estimates that approximately 500 annual permits will be issued, which is based on current permit volume for containerized cargo in other states. Based on 500 annual permits at $205 each, it is anticipated a total of $102,500would be deposited annually into the General Revenue Fund. 


Local Government Impact

No significant fiscal implication to units of local government is anticipated.


Source Agencies:
601 Department of Transportation
LBB Staff:
JK, JO, RR, RT, DE