LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 13, 2025 TO: Honorable Tom Craddick, Chair, House Committee on Transportation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4906 by Perez, Mary Ann (Relating to the dedication of revenue received from certain oversize or overweight vehicle permits to the state highway fund.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB4906, As Introduced: a negative impact of ($6,186,000) 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 toGeneral Revenue Related Funds2026($3,070,000)2027($3,116,000)2028($3,163,000)2029($3,211,000)2030($3,259,000)All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromState Highway Fund62026($3,070,000)$3,070,0002027($3,116,000)$3,116,0002028($3,163,000)$3,163,0002029($3,211,000)$3,211,0002030($3,259,000)$3,259,000 Fiscal AnalysisThe bill would reenact provisions in Transportation Code, Chapter 623, regarding the dedication of revenue collected from oversize or overweight vehicle permits for operation of a ready-mix concrete truck and permits for vehicles or combination of vehicles transporting timber to the State Highway Fund. 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.Note: This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either in, with, or outside the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 13, 2025
TO: Honorable Tom Craddick, Chair, House Committee on Transportation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4906 by Perez, Mary Ann (Relating to the dedication of revenue received from certain oversize or overweight vehicle permits to the state highway fund.), As Introduced
TO: Honorable Tom Craddick, Chair, House Committee on Transportation
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB4906 by Perez, Mary Ann (Relating to the dedication of revenue received from certain oversize or overweight vehicle permits to the state highway fund.), As Introduced
Honorable Tom Craddick, Chair, House Committee on Transportation
Honorable Tom Craddick, Chair, House Committee on Transportation
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB4906 by Perez, Mary Ann (Relating to the dedication of revenue received from certain oversize or overweight vehicle permits to the state highway fund.), As Introduced
HB4906 by Perez, Mary Ann (Relating to the dedication of revenue received from certain oversize or overweight vehicle permits to the state highway fund.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB4906, As Introduced: a negative impact of ($6,186,000) 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.
Estimated Two-year Net Impact to General Revenue Related Funds for HB4906, As Introduced: a negative impact of ($6,186,000) 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.
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:
2026 ($3,070,000)
2027 ($3,116,000)
2028 ($3,163,000)
2029 ($3,211,000)
2030 ($3,259,000)
All Funds, Five-Year Impact:
2026 ($3,070,000) $3,070,000
2027 ($3,116,000) $3,116,000
2028 ($3,163,000) $3,163,000
2029 ($3,211,000) $3,211,000
2030 ($3,259,000) $3,259,000
Fiscal Analysis
The bill would reenact provisions in Transportation Code, Chapter 623, regarding the dedication of revenue collected from oversize or overweight vehicle permits for operation of a ready-mix concrete truck and permits for vehicles or combination of vehicles transporting timber to the State Highway Fund. 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.Note: This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either in, with, or outside the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
The bill would reenact provisions in Transportation Code, Chapter 623, regarding the dedication of revenue collected from oversize or overweight vehicle permits for operation of a ready-mix concrete truck and permits for vehicles or combination of vehicles transporting timber to the State Highway Fund. 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
Under current law, the Texas Department of Motor Vehicles (TxDMV) is authorized to issue a permit authorizing the operation of a ready-mix concrete truck for a fee of $1,000 and may issue a permit for a vehicle transporting timber in certain timber producing counties for a $900 fee. The ready-mix concrete truck permit and the permit for vehicles transporting timber were established by the enactment of House Bill 2741, Eighty-third Legislature, Regular Session, 2013, which allocated 50 percent of both permit fees to the State Highway Fund and the remaining 50 percent to counties. However, because House Bill 2741 was not exempted from the funds consolidation act, the state portion of the fees is currently deposited to the General Revenue Fund instead of the State Highway Fund.The bill would reenact Transportation Code, Section 623.0171(l), regarding ready-mix concrete truck permits, and Section 623.324(a), regarding timber vehicle permits, to rededicate 50 percent of the fees collected for both permits to the State Highway Fund. The other half would continue to be allocated to counties designated in the application for each permit.Based on the information and analysis provided by TxDMV and the Comptroller's office, the bill would result in a revenue gain to State Highway Fund No. 6 and an equivalent revenue loss to General Revenue Fund No. 1 as shown in the table above. This analysis assumes the bill would take effect September 1, 2025 (fiscal year 2026) and the number of permits issued and related revenue impacts would increase by 1.5 percent each fiscal year.
Under current law, the Texas Department of Motor Vehicles (TxDMV) is authorized to issue a permit authorizing the operation of a ready-mix concrete truck for a fee of $1,000 and may issue a permit for a vehicle transporting timber in certain timber producing counties for a $900 fee. The ready-mix concrete truck permit and the permit for vehicles transporting timber were established by the enactment of House Bill 2741, Eighty-third Legislature, Regular Session, 2013, which allocated 50 percent of both permit fees to the State Highway Fund and the remaining 50 percent to counties. However, because House Bill 2741 was not exempted from the funds consolidation act, the state portion of the fees is currently deposited to the General Revenue Fund instead of the State Highway Fund.
The bill would reenact Transportation Code, Section 623.0171(l), regarding ready-mix concrete truck permits, and Section 623.324(a), regarding timber vehicle permits, to rededicate 50 percent of the fees collected for both permits to the State Highway Fund. The other half would continue to be allocated to counties designated in the application for each permit.
Based on the information and analysis provided by TxDMV and the Comptroller's office, the bill would result in a revenue gain to State Highway Fund No. 6 and an equivalent revenue loss to General Revenue Fund No. 1 as shown in the table above. This analysis assumes the bill would take effect September 1, 2025 (fiscal year 2026) and the number of permits issued and related revenue impacts would increase by 1.5 percent each fiscal year.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 304 Comptroller of Public Accounts, 608 Department of Motor Vehicles
304 Comptroller of Public Accounts, 608 Department of Motor Vehicles
LBB Staff: b > td > JMc, AAL, GDZ, TG
JMc, AAL, GDZ, TG