BILL ANALYSIS

C.S.H.B. 2577

By: Kuempel

Environmental Regulation

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The light-duty motor vehicle purchase or lease incentive program, funded through the Texas emissions reduction plan, provides incentives for the purchase of various kinds of reduced emissions vehicles, largely electric or hybrid cars. Concerns have been raised that current statutory language prevents the use of these underutilized incentives for electric motorcycles by limiting eligible vehicles to only those with four wheels. C.S.H.B. 2577 seeks to address these concerns by making certain motorcycles eligible for an incentive under the program.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 2577 amends the Health and Safety Code to make eligible for the $2,500 incentive under the light-duty motor vehicle purchase or lease incentive program a motorcycle that is a new light-duty motor vehicle powered by an electric drive and that meets the other program requirements. The bill makes a motor-assisted scooter, pocket bike, and minimotorbike ineligible for the incentive. A person receiving the incentive must remit $750 to the comptroller of public accounts to deposit to the credit of the state highway fund. The deposited money must be used in a manner consistent with the purposes specified by Texas Constitution provisions for revenues from motor vehicle registration fees and taxes on motor fuels and lubricants.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2021.

COMPARISON OF ORIGINAL AND SUBSTITUTE

While C.S.H.B. 2577 may differ from the original in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

The substitute includes a provision not in the original requiring the money deposited to the credit of the state highway fund to be used in a manner consistent with the purposes specified by Texas Constitution provisions for revenues from motor vehicle registration fees and taxes on motor fuels and lubricants.