Honorable Ryan Guillen, Chair, House Committee on Homeland Security & Public Safety
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB2838 by Burns (Relating to the exclusion of the operation of certain vehicles from commercial driver's license requirements.), As Introduced
There could be a loss of Federal Funding caused by the decertification of the Commercial Driver's License program that would result in a loss of up to $50,000,000 in General Revenue each fiscal year, or $100,000,000 for the 2024-25 biennium.
According to the Department of Public Safety (DPS), the provisions of the bill could put Texas out of compliance with federal commercial motor vehicle (CMV) and commercial driver license (CDL) requirements by exempting certain vehicles and drivers from CMV and CDL requirements. This could result in the decertification of the CDL program and prohibit the state from issuing CDLs.
According to CPA, federal highway funds could be withheld if the CDL program was decertified and could result in the loss of up to $50,000,000 per fiscal year deposited to the General Revenue Fund from the federal Motor Carrier Safety Assistance Program.
According to CPA, the loss of CDL fees associated with the newly exempted vehicle type described in the provisions of the bill would likely be insignificant and the constitutionally required replenishment of these dedicated funds to the Texas Mobility Fund would, likewise, be insignificant.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
304 Comptroller of Public Accounts, 405 Department of Public Safety