Provides relative to special permit fees (EG +$3,088,811 SD RV See Note)
Impact
The introduction of HB 901 is expected to have significant implications for state law surrounding transportation and regulatory fees. By tying permit fees to the CPI, the bill establishes a framework for adapting to economic changes while preventing local or administrative discretion that could lead to inconsistencies. This approach may benefit users by ensuring that they are not subjected to erratic fluctuations in fees, as the adjustments will occur systematically every five years after 2029, and will not exceed the set annual growth limit. This amendment serves to promote fiscal responsibility in managing permit revenues whilst addressing the impacts of inflation on costs.
Summary
House Bill 901 aims to amend existing regulations related to special permits by establishing a systematic fee increase based on the Consumer Price Index (CPI). The bill specifically addresses annual, semiannual, and single trip weight permit fees, mandating that they be adjusted according to changes in the CPI beginning in August 2019. This legislation is designed to ensure that fees are reflective of economic conditions as captured by the CPI, with a maximum allowable increase of $200 per year. Importantly, the bill prohibits any reduction of those adjusted fees over time, thereby providing predictability and stability for revenue from these permits.
Sentiment
Overall, the sentiment surrounding HB 901 appears to be mixed, reflecting both support and criticism. Proponents argue that this legislative action is a necessary modernization of permit fee structures, aligning them more closely with economic realities and ensuring stable funding for relevant state services. However, opponents may express concerns regarding the potential burden placed on businesses needing these permits, particularly small businesses, if the fees increase significantly over time. The debate indicates a broader discussion about the balance between maintaining adequate funding and ensuring that compliance costs do not hinder economic activity.
Contention
One notable point of contention regarding HB 901 revolves around the implications of fixed annual increases in permit fees without the possibility of reductions. Critics may argue that as economic conditions fluctuate, the inability to decrease fees could disproportionately affect certain industries or sectors, especially during economic downturns. Additionally, some stakeholders might question whether the focus on CPI is the most equitable or effective measure for adjusting permit fees, suggesting that more tailored approaches may be needed to accommodate varying circumstances across different types of usage.
Increases certain special permit fees and dedicates the proceeds of the fee increase into the Construction Subfund of the Transportation Trust Fund (EN +$8,584,000 SD RV See Note)