LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 83RD LEGISLATIVE REGULAR SESSION
 
April 8, 2013

TO:
Honorable Larry Phillips, Chair, House Committee on Transportation
 
FROM:
Ursula Parks, Director, Legislative Budget Board
 
IN RE:
HB2386 by Capriglione (Relating to the operation of all-terrain vehicles on public highways; providing a penalty; authorizing fees.), As Introduced

The provisions of the bill would result in an indeterminate revenue gain to the State depending on the number of all-terrain vehicles (ATV) that would be registered or inspected and the number of individuals who would apply for an ATV operator's license.

The bill would amend the Transportation Code to authorize the registration of all-terrain vehicles (ATV) by the Department of Motor Vehicles (DMV) in the same manner as a motorcycle with an annual registration fee of $30. The bill would amend the Transportation Code to authorize the holder of a Class M driver's license to operate a registered ATV. An ATV driver's license would be required to operate a registered ATV on a highway in Texas. The bill would require the Department of Public Safety (DPS) to administer a written exam to an applicant for an ATV license. All current fees for the issuance and renewal of a Class M license or for adding a motorcycle authorization to another class of license would apply to a license or authorization operate an ATV. The bill would require DPS by rule to establish the procedure to determine whether a vehicle is an ATV and compile a list of ATVs certified by the department. The bill would require a registered ATV to be subject to a vehicle inspection in the same manner as a motorcycle. The bill would authorize the operator of a registered ATV to drive the vehicle on a public street, road, or highway located in a county with a population of less than 500,000. The bill would require the DMV to adopt rules necessary to implement the provisions of the bill no later than January 1, 2014. Except as otherwise provided, the bill would take effect on September 1, 2013.

Based on the information provided by the DMV and DPS, it is assumed any costs or duties associated with implementing the provisions of the bill could be absorbed within existing resources. 

The current fees for a motor cycle registration, operator's license/authorization, and vehicle inspection would apply to ATV registrations, licenses, and inspections. The DMV currently titles ATVs but does not register these vehicles. The DMV reports that 179,070 ATVs were titled in Texas in fiscal year 2012. Under the provisions of the bill, an ATV registration would be optional and would only be required for operation of an ATV on certain public roadways in counties with less than 500,000 population. For illustrative purposes, ATV registrations would generate approximately $2.7 million in revenue each year if half of the current ATV title holders chose to obtain the new registration at the current fee of $30 per registration year. Revenue from vehicle registration fees is split between the state and the counties with approximately 87 percent deposited to the State Highway Fund and 13 percent retained by the counties. Revenue from driver's license fees is deposited to the Texas Mobility Fund. Revenue from motor vehicle inspections is deposited to the Texas Mobility Fund and General Revenue-Dedicated Funds (Clean Air Account No. 0151 and Texas Emissions Reduction Plan Account No. 5071). Because the number of ATVs that would be registered and inspected and the number of people that would apply for an ATV operator's license are unknown, the resulting revenue gain to these funds and accounts cannot be determined at this time.


Local Government Impact

The bill would result in an indeterminate revenue gain to counties depending on the number ATVs that would be registered and the counties in which they would be registered.


Source Agencies:
304 Comptroller of Public Accounts, 405 Department of Public Safety, 608 Department of Motor Vehicles
LBB Staff:
UP, AG, MW, TG