TO: | Honorable Larry Phillips, Chair, House Committee on Transportation |
FROM: | Ursula Parks, Director, Legislative Budget Board |
IN RE: | HB1880 by McClendon (Relating to funds dedicated to the Texas rail relocation and improvement fund.), As Introduced |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2014 | $5,335,601 |
2015 | $5,442,313 |
2016 | $5,551,159 |
2017 | $5,662,182 |
2018 | $5,775,426 |
Fiscal Year | Probable Revenue Gain/(Loss) from General Revenue Fund 1 |
Probable Revenue Gain/(Loss) from State Highway Fund 6 |
Probable Savings/(Cost) from State Highway Fund 6 |
---|---|---|---|
2014 | $5,335,601 | ($5,335,601) | $15,558,130 |
2015 | $5,442,313 | ($5,442,313) | $15,869,293 |
2016 | $5,551,159 | ($5,551,159) | $16,186,679 |
2017 | $5,662,182 | ($5,662,182) | $16,510,412 |
2018 | $5,775,426 | ($5,775,426) | $16,840,620 |
The bill would amend Section 623.0111 of the Transportation Code to specify that out of amounts collected from permit fees for excess axle and gross weight under that section, $25 million is to be deposited to the General Revenue Fund and the remainder to the Texas Rail Relocation and Improvement Fund (Fund 306). The bill would repeal Section 621.353 (c), which requires the Comptroller to send each fee collected under Section 623.0111 for an excess weight permit to the counties designated on the application for the permit.
The bill would take effect immediately upon receiving a vote of two-thirds of all members elected to each house or otherwise on September 1, 2013.
Currently, the revenue collected from permit fees under Section 623.0111 is divided between the General Revenue Fund and State Highway Fund 6 (Fund 6) based on the number of counties designated on the permit. Under the provisions of the bill, the first $25 million collected from these permit fees would be deposited to the General Revenue Fund and the remainder would be deposited to the Texas Rail Relocation and Improvement Fund 306.
The Department of Motor Vehicles reports that a total of $14,953,989 was collected from these fees in fiscal year 2012 of which $9,825,576 was deposited to the General Revenue Fund and $5,128,413 was deposited to Fund 6. Based on the analysis provided by the Comptroller’s office, it is assumed the permit fee revenue will grow at a rate of two percent each fiscal year. For the purposes of this analysis, it is assumed the bill would take effect on September 1, 2013 (fiscal year 2014). Based on the information and analysis provided by DMV and the Comptroller’s office, it is assumed the bill would result in a revenue gain of $5,335,601 to the General Revenue Fund and an equal revenue loss to Fund 6 beginning in fiscal year 2014; and the revenue gain to the General Revenue Fund and loss to Fund 6 and revenue would continue at annual growth rate of two percent each year thereafter. The bill would not result in a revenue impact to Fund 306.
Source Agencies: | 304 Comptroller of Public Accounts, 601 Department of Transportation, 608 Department of Motor Vehicles
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LBB Staff: | UP, AG, MW, TG
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