Honorable Tom Craddick, Chair, House Committee on Transportation
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB5332 by Kerwin (Relating to the issuance of excess axle or gross weight permits.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB5332, As Introduced: a negative impact of ($8,133,100) through the biennium ending August 31, 2027.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026
($4,036,300)
2027
($4,096,800)
2028
($4,158,400)
2029
($4,220,700)
2030
($4,284,000)
All Funds, Five-Year Impact:
Fiscal Year
Probable Revenue Gain/(Loss) from General Revenue Fund 1
Probable Revenue Gain/(Loss) from State Highway Fund 6
Probable Revenue (Loss) from Texas Department of Motor Vehicles Fund 10
Probable Revenue Gain/(Loss) from Counties
2026
($4,036,300)
($1,241,900)
($813,800)
($750,900)
2027
($4,096,800)
($1,260,500)
($826,000)
($762,200)
2028
($4,158,400)
($1,279,400)
($838,400)
($773,600)
2029
($4,220,700)
($1,298,600)
($851,000)
($785,200)
2030
($4,284,000)
($1,318,100)
($863,700)
($797,000)
Fiscal Analysis
The bill would amend the Transportation Code to remove the authority for the Texas Department of Motor Vehicles (TxDMV) to issue over-gross-weight tolerance permits. 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, 2025.
Methodology
Based on the analysis provided by TxDMV, it is assumed implementation of the bill would result in a 25 percent reduction in the number of Over Axle/Over Gross Weight tolerance permits issued each fiscal year. For the purposes of this analysis, it is assumed the bill would take effect on September 1, 2025 (fiscal year 2026). The applicable fees for each Over Axle/Over Gross Weight permit are as follows: (1) a $90 base fee, of which $50 is allocated to the counties and $40 is deposited to the Texas Department of Motor Vehicles Fund (TxDMV Fund 0010); (2) a $5 administrative fee is deposited to TxDMV Fund 0010; and (3) a variable $175-$1,000 fee (the amount of which is based on the number of counties in which the permitted vehicle will operate), of which $125-$1,000 is deposited to the General Revenue Fund for allocation to the counties, $0-$112.50 is deposited to the State Highway Fund, and $0-$12.50 is deposited to TxDMV Fund 0010. TxDMV projects the number of permits issued, would grow by 1.5 percent each year under current law. Based on the information and analysis provided by TxDMV, it is assumed implementation of the bill would result in the revenue losses shown in the table above beginning in fiscal year 2026.
It is assumed that any impact on state correctional populations or on the demand for state correctional resources would not be significant.
Local Government Impact
It is assumed implementation of the bill would result in a revenue loss to the county road and bridge fund from the portion of each overweight permit fee allocated to the counties.
It is assumed that any fiscal impact to units of local government associated with enforcement, prosecution, supervision, or confinement would not be significant.
Source Agencies:
212 Office of Court Administration, Texas Judicial Council, 608 Department of Motor Vehicles