| TO: | Honorable John Carona, Chair, Senate Committee on Transportation & Homeland Security |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | SB1373 by Carona (Relating to the issuance and enforcement of motor carrier overweight or oversize vehicle permits and motor carrier registrations; providing administrative penalties.), As Introduced |
| Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
|---|---|
| 2008 | ($29,086,781) |
| 2009 | ($31,896,410) |
| 2010 | ($34,904,028) |
| 2011 | ($38,364,442) |
| 2012 | ($42,082,990) |
| Fiscal Year | Probable Revenue (Loss) from GENERAL REVENUE FUND 1 |
Probable Revenue Gain from STATE HIGHWAY FUND 6 |
|---|---|---|
| 2008 | ($29,086,781) | $119,432,616 |
| 2009 | ($31,896,410) | $130,048,575 |
| 2010 | ($34,904,028) | $141,672,713 |
| 2011 | ($38,364,442) | $154,349,337 |
| 2012 | ($42,082,990) | $168,240,135 |
The bill would amend the Transportation Code to triple the base fee and the variable fees required for a permit for excess axle or gross weight and require that the fees be deposited to the credit of the State Highway Fund (Fund 6). The bill would dedicate the administrative fee charged on a permit for excess axle or gross weight, and any fee paid to transfer a permit, to the Fund 6. The bill would triple the cost of a single-trip permit to $90 from $30 and triple the costs on the multiple-day permit schedule. The bill would increase the annual permit to move an implement of husbandry by a dealer or other equipment as part of an agricultural operation to $405 from $135. The bill would increase the statutory cap on a permit fee for an annual permit to move super-heavy or oversize equipment to an amount not exceed $10,500 from the current $3,500; and each fee would be deposited to the Fund 6. The bill would triple the maintenance fee schedule based on vehicle weight and assessed on a permit for heavy equipment and require fees to be deposited in Fund 6. The bill would increase permit fees for transporting manufactured and industrialized housing to $60 from $20, and annual permits to move a manufactured homes from a manufacturing facility to a temporary storage location to an amount not to exceed $4,500 from $1,500 and require fees to be deposited to Fund 6. The bill would increase the fee for a permit to move a portable building unit to $22.50 from $7.50, for deposit to Fund 6. The bill would increase the fee for an annual permit to move unladen lift equipment to $150 from $50 and require the fees to be deposited to Fund 6. The bill would amend the Transportation Code to provide that the Texas Department of Transportation (TxDOT) may investigate and impose administrative penalties and revocations for oversize/overweight permit violations of statute, rule, order, or for providing false information on required forms. The bill would provide that administrative penalties may be imposed under the process currently in effect in the Transportation Code. The bill would authorize TxDOT to deny, revoke, or suspend motor carrier registration for violations and for failure to pay administrative penalties. The bill would provide for injunctive relief by the Office of the Attorney General (OAG) at the request of TxDOT. The bill would establish the procedures to be followed for an administrative hearing at the State Office of Administrative Hearings (SOAH) and would specify that a contested hearing will be held only when the alleged violator requests a hearing.
The bill would take effect on September 1, 2007.
TxDOT provided estimates for the number of permits issued by number of counties designated, vehicle weight, and category for each permit and fee affected by the provisions of the bill. Based on the information and analysis provided by TxDOT and the Comptroller, it is assumed the following Sections of the bill would result in the following fiscal impacts to the General Revenue Fund (GR) and the State Highway Fund (Fund 6):
SECTION 1, relating to base fees for weight tolerance permits, would result in a revenue loss of approximately $1.7 million to GR and a gain to Fund 6 of approximately $6.8 million beginning in fiscal year 2008. The revenue impacts would increase based on an estimated 10 percent annual increase in permits issued.
SECTION 2, relating to weight tolerance fees variable by weight, would result in a revenue loss of approximately $5.7 million to GR and a gain to Fund 6 of approximately $17.2 million beginning in fiscal year 2008. The revenue impacts would increase based on an estimated 10 percent annual increase in permits issued.
SECTION 5, relating to fees for certain heavy equipment, would result in a revenue loss of approximately $19.6 million to GR and a gain to Fund 6 of approximately $68.6 million beginning in fiscal year 2008. The revenue impacts would increase based on an estimated 5 to10 percent annual increase in permits issued, depending on the permit category.
SECTION 6, relating to highway maintenance fees for certain permits, would result in a revenue gain to Fund 6 of approximately $20.5 million beginning in fiscal year 2008. The revenue impacts would increase based on an estimated 5 percent annual increase in permits issued.
SECTION 7, relating to manufactured housing single trip and annual permit fees, would result in a revenue loss of approximately $1.9 million to GR and a gain to Fund 6 of approximately $5.8 million beginning in fiscal year 2008. The revenue impacts would increase based on an estimated 5 percent annual increase in single trip permits issued and a slight increase in annual permits issued each year.
SECTION 8, relating to permits to transport portable buildings, would result in a revenue loss of $144,983 to GR and a gain to Fund 6 of $434,948 beginning in fiscal year 2008. The revenue impacts would increase based on an estimated 3 percent annual increase in permits issued.
SECTION 11, relating to annual permits for unladen lift equipment motor vehicles, would result in a revenue loss of $13,800 to GR and a gain to Fund 6 of $41,400 beginning in fiscal year 2008. The revenue impacts would increase based on an estimated 5 percent annual increase in permits issued.
The Comptroller indicates that the bill would create revenue dedications that would be subject to funds consolidation review by the current Legislature.
Based on the analysis of TxDOT, the Office of the Attorney General, and the State Office of Administrative Hearings, it is assumed any costs associated with implementing provisions for enforcement of oversize/overweight permit laws and administrative actions could be absorbed within existing state resources.
| Source Agencies: | 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 360 State Office of Administrative Hearings, 601 Department of Transportation
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| LBB Staff: | JOB, KJG, MW, TG
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