LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION March 29, 2011 TO: Honorable Larry Phillips, Chair, House Committee on Transportation FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB2960 by Darby (Relating to farm vehicles and vehicles controlled and operated by farmers.), As Introduced The enactment of the bill could result in a loss of federal funds to the State. The bill would amend Chapter 502 of the Transportation Code to allow the use of a commercial farm vehicle to transport the owner or a member of the owner's family to participate in certain equine activities or attend livestock shows. The bill would amend Transportation Code, Section 522.004, to authorize a farmer to operate a vehicle that is used to transport agricultural products, farm machinery, or farm supplies to or from a farm outside of a distance of 150 miles from the person's farm. The Department of Public Safety (DPS) indicates the provisions of the bill authorizing the operation of a farm vehicle outside of the 150 mile radius without requiring a commercial driver license would place Texas out of compliance with Title 49, Code of Federal Regulations, and risk a loss of federal-aid highway funds and federal Motor Carrier Safety Assistance Program (MCSAP) funds. Based on the analysis of DPS, it is assumed the potential losses from federal-aid highway funds would be 5 percent of the total funds received in the first year of non-compliance ($80,227,324) and 10 percent in all subsequent years ($160,454,648) and a complete withdrawal of MCSAP funds (approximately $36,000,000 each year) in each year of non-compliance. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:405 Department of Public Safety, 608 Department of Motor Vehicles LBB Staff: JOB, KJG, MW, TG, SD LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION March 29, 2011 TO: Honorable Larry Phillips, Chair, House Committee on Transportation FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB2960 by Darby (Relating to farm vehicles and vehicles controlled and operated by farmers.), As Introduced TO: Honorable Larry Phillips, Chair, House Committee on Transportation FROM: John S O'Brien, Director, Legislative Budget Board IN RE: HB2960 by Darby (Relating to farm vehicles and vehicles controlled and operated by farmers.), As Introduced Honorable Larry Phillips, Chair, House Committee on Transportation Honorable Larry Phillips, Chair, House Committee on Transportation John S O'Brien, Director, Legislative Budget Board John S O'Brien, Director, Legislative Budget Board HB2960 by Darby (Relating to farm vehicles and vehicles controlled and operated by farmers.), As Introduced HB2960 by Darby (Relating to farm vehicles and vehicles controlled and operated by farmers.), As Introduced The enactment of the bill could result in a loss of federal funds to the State. The enactment of the bill could result in a loss of federal funds to the State. The bill would amend Chapter 502 of the Transportation Code to allow the use of a commercial farm vehicle to transport the owner or a member of the owner's family to participate in certain equine activities or attend livestock shows. The bill would amend Transportation Code, Section 522.004, to authorize a farmer to operate a vehicle that is used to transport agricultural products, farm machinery, or farm supplies to or from a farm outside of a distance of 150 miles from the person's farm. The Department of Public Safety (DPS) indicates the provisions of the bill authorizing the operation of a farm vehicle outside of the 150 mile radius without requiring a commercial driver license would place Texas out of compliance with Title 49, Code of Federal Regulations, and risk a loss of federal-aid highway funds and federal Motor Carrier Safety Assistance Program (MCSAP) funds. Based on the analysis of DPS, it is assumed the potential losses from federal-aid highway funds would be 5 percent of the total funds received in the first year of non-compliance ($80,227,324) and 10 percent in all subsequent years ($160,454,648) and a complete withdrawal of MCSAP funds (approximately $36,000,000 each year) in each year of non-compliance. The bill would amend Chapter 502 of the Transportation Code to allow the use of a commercial farm vehicle to transport the owner or a member of the owner's family to participate in certain equine activities or attend livestock shows. The bill would amend Transportation Code, Section 522.004, to authorize a farmer to operate a vehicle that is used to transport agricultural products, farm machinery, or farm supplies to or from a farm outside of a distance of 150 miles from the person's farm. The Department of Public Safety (DPS) indicates the provisions of the bill authorizing the operation of a farm vehicle outside of the 150 mile radius without requiring a commercial driver license would place Texas out of compliance with Title 49, Code of Federal Regulations, and risk a loss of federal-aid highway funds and federal Motor Carrier Safety Assistance Program (MCSAP) funds. Based on the analysis of DPS, it is assumed the potential losses from federal-aid highway funds would be 5 percent of the total funds received in the first year of non-compliance ($80,227,324) and 10 percent in all subsequent years ($160,454,648) and a complete withdrawal of MCSAP funds (approximately $36,000,000 each year) in each year of non-compliance. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 405 Department of Public Safety, 608 Department of Motor Vehicles 405 Department of Public Safety, 608 Department of Motor Vehicles LBB Staff: JOB, KJG, MW, TG, SD JOB, KJG, MW, TG, SD