LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION April 20, 2021 TO: Honorable Robert Nichols, Chair, Senate Committee on Transportation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1865 by West (Relating to an annual permit for certain equipment used to apply paint to roadways; authorizing a fee.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB1865, As Introduced : a positive impact of $202,000 through the biennium ending August 31, 2023. 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 toGeneral Revenue Related Funds2022$100,0002023$102,0002024$104,0002025$106,0002026$108,000All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromState Highway Fund6 Probable Revenue Gain/(Loss) fromTexas Department of Motor Vehicles Fund102022$100,000$270,000$30,0002023$102,000$275,400$30,6002024$104,000$280,800$31,2002025$106,000$286,200$31,8002026$108,000$291,600$32,400 Fiscal AnalysisThe bill would amend Transportation Code 623.071 to authorize the Texas Department of Motor Vehicles (TxDMV) to issue an annual permit to allow the operation on a state highway of oversize and overweight equipment that is used solely for applying paint to a roadway as part of the construction or maintenance of public roads. The bill would amend Transportation Code 623.076 (c) to specify that an application for the permit is subject to a fee established by the board of TxDMV, in consultation with the Texas Transportation Commission, not to exceed $7,000. The bill would amend Transportation Code 623.077 (a) to exempt an applicant for this permit from payment of the additional highway maintenance fee established under that section.The bill would take effect on September 1, 2021. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION April 20, 2021 TO: Honorable Robert Nichols, Chair, Senate Committee on Transportation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1865 by West (Relating to an annual permit for certain equipment used to apply paint to roadways; authorizing a fee.), As Introduced TO: Honorable Robert Nichols, Chair, Senate Committee on Transportation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB1865 by West (Relating to an annual permit for certain equipment used to apply paint to roadways; authorizing a fee.), As Introduced Honorable Robert Nichols, Chair, Senate Committee on Transportation Honorable Robert Nichols, Chair, Senate Committee on Transportation Jerry McGinty, Director, Legislative Budget Board Jerry McGinty, Director, Legislative Budget Board SB1865 by West (Relating to an annual permit for certain equipment used to apply paint to roadways; authorizing a fee.), As Introduced SB1865 by West (Relating to an annual permit for certain equipment used to apply paint to roadways; authorizing a fee.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB1865, As Introduced : a positive impact of $202,000 through the biennium ending August 31, 2023. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. Estimated Two-year Net Impact to General Revenue Related Funds for SB1865, As Introduced : a positive impact of $202,000 through the biennium ending August 31, 2023. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. 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: 2022 $100,000 2023 $102,000 2024 $104,000 2025 $106,000 2026 $108,000 All Funds, Five-Year Impact: 2022 $100,000 $270,000 $30,000 2023 $102,000 $275,400 $30,600 2024 $104,000 $280,800 $31,200 2025 $106,000 $286,200 $31,800 2026 $108,000 $291,600 $32,400 Fiscal Analysis The bill would amend Transportation Code 623.071 to authorize the Texas Department of Motor Vehicles (TxDMV) to issue an annual permit to allow the operation on a state highway of oversize and overweight equipment that is used solely for applying paint to a roadway as part of the construction or maintenance of public roads. The bill would amend Transportation Code 623.076 (c) to specify that an application for the permit is subject to a fee established by the board of TxDMV, in consultation with the Texas Transportation Commission, not to exceed $7,000. The bill would amend Transportation Code 623.077 (a) to exempt an applicant for this permit from payment of the additional highway maintenance fee established under that section.The bill would take effect on September 1, 2021. The bill would take effect on September 1, 2021. Methodology TxDMV reports that the current annual fee for permits subject to Transportation Code 623.076 (c) is $4,000, of which the first $1,000 is deposited to General Revenue Fund 0001, 90 percent of the remainder is deposited to State Highway Fund 0006, and the remaining 10 percent to the TxDMV Fund 0010. Based on the analysis provided by TxDMV, it is assumed 100 annual permits would be issued in fiscal year 2022 and the number of permits issued would increase by 1.5 percent each fiscal year. The table above shows the estimated revenue gains to the General Revenue Fund, State Highway Fund, and TxDMV Fund for fiscal years 2022 to 2026 from issuance of the permit authorized by the bill. It is assumed similar revenue revenue impacts would continue beyond fiscal year 2026.Based on the information provided by TxDMV, it is assumed any costs or duties associated with implementing the provisions of the bill could be absorbed within the agency's existing resources.This analysis does not include an estimate of the impact on pavement or bridge consumption that may be associated with the vehicle size and weight limitations authorized by the bill. Based on the information provided by TxDMV, it is assumed any costs or duties associated with implementing the provisions of the bill could be absorbed within the agency's existing resources. This analysis does not include an estimate of the impact on pavement or bridge consumption that may be associated with the vehicle size and weight limitations authorized by the bill. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: b > td > 304 Comptroller of Public Accounts, 601 Department of Transportation, 608 Department of Motor Vehicles 304 Comptroller of Public Accounts, 601 Department of Transportation, 608 Department of Motor Vehicles LBB Staff: b > td > JMc, AAL, MB, TG JMc, AAL, MB, TG