LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
 
April 11, 2023

TO:
Honorable Terry Canales, Chair, House Committee on Transportation
 
FROM:
Jerry McGinty, Director, Legislative Budget Board
 
IN RE:
HB3418 by Canales (relating to the implementation by the Texas Department of Transportation of a vehicle mileage user fee pilot program and a task force to assist in developing and evaluating the program.), Committee Report 1st House, Substituted

No significant fiscal implication to the State is anticipated.

The bill would amend Chapter 201, Transportation Code, by adding a new subchapter to establish a vehicle mileage user fee pilot program. The subchapter would expire on November 1, 2026. The bill would establish a vehicle mileage user fee task force to guide the development and evaluation of the pilot program. The task force would consist of seven members, including members appointed by the Governor, Lieutenant Governor, Speaker of the House of Representatives, and include members of the Senate and House Committees on Transportation.

The bill would require the Texas Department of Transportation (TxDOT), in consultation with the Texas Department of Motor Vehicles (TxDMV) and the Texas A&M Transportation Institute (TTI), to develop and implement a statewide vehicle mileage user fee pilot program for owners of motor vehicles. The bill would specify a maximum number of vehicles to be included in the program, on which mileage would be measured using a variety of vehicle mileage counting strategies administered in a manner TxDOT considers appropriate. The bill would require TxDOT by rule to establish a process for compensating pilot program participants, which may include a refund of motor fuels taxes paid by the participant. The bill would require TxDOT to apply for certain federal grant funding from the U.S. Department of Transportation (USDOT) to obtain full or partial funding for the pilot program. The bill would require TxDOT to submit to the legislature a report summarizing the results of the program by September 1, 2026. The bill would take effect on September 1, 2023.

TxDOT reports having received USDOT grant funding from the source specified by the bill (Surface Transportation System Funding Alternatives (STSFA) grant; renamed as the Strategic Innovation for Revenue Collection (SIRC) program). Based on this information, it is assumed, if TxDOT were to apply for and receive such federal grant funding for this pilot program, any non-federal matching funds requirements could be accommodated through the reallocation of the department's existing resources. Based on the information provided by TxDOT, TxDMV, and TTI, it is assumed any other costs or duties associated with implementing the provisions of the bill could be accomplished within existing resources. The bill does not establish a fee or authorize the assessment or collection of a fee as part of the pilot program. Therefore, no impact to state revenue is anticipated.

Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
300 Trusteed Programs Within the Office of the Governor, 304 Comptroller of Public Accounts, 601 Department of Transportation, 608 Department of Motor Vehicles, 727 Texas A&M Transportation Institute
LBB Staff:
JMc, AAL, TG