BILL ANALYSIS Senate Research Center S.B. 2707 89R5554 JRR-D By: Hagenbuch Transportation 4/16/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT S.B. 2707 would ensure the Texas Department of Motor Vehicles can continue to by rule exempt governmental entities from fees and sureties for oversize/overweight vehicle permits or authority. This has been the norm for this program since in was run by the Texas Department of Transportation (TxDOT) years ago and continues now. Some of the main governmental entities using these permits are the U.S. military and TxDOT. S.B. 2707 would make clear that both the company-specific and vehicle-specific version of the annual envelope permit are exempt from the highway maintenance fee. This has been the practice since these permits were created, and hopefully the statute can get clarified. As proposed, S.B. 2707 amends current law relating to certain oversize or overweight vehicle permit fees or surety requirements. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the Texas Department of Motor Vehicles in SECTION 1 (Section 622.134, Transportation Code), SECTION 2 (Section 623.009, Transportation Code), and SECTION 4 (Section 623.163, Transportation Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 622.134(c), Transportation Code, as follows: (c) Provides that Section 622.134 (Surety Bond), rather than Subsection (a) (relating to requiring the owner of a vehicle meeting certain requirements to file with the Texas Department of Motor Vehicles (TxDMV) a surety bond), does not apply to a vehicle owned by a municipality or a county. Authorizes TxDMV by rule to exempt a vehicle owned by any other governmental entity from the application of this section. SECTION 2. Amends Subchapter A, Chapter 623, Transportation Code, by adding Section 623.009, as follows: Sec. 623.009. WAIVER OF PERMIT FEE OR SURETY REQUIREMENT FOR GOVERNMENTAL ENTITIES. Authorizes TxDMV by rule to waive the fee and any surety requirements, including a requirement for a bond or letter of credit, for a permit issued by TxDMV under Subtitle E (Vehicle Size and Weight) to a governmental entity. SECTION 3. Amends Section 623.077(a), Transportation Code, as follows: (a) Provides that an applicant for a permit under Subchapter D (Heavy Equipment), other than a permit under Section 623.071(c)(3) (relating to authorizing TxDMV to issue an annual permit to allow the operation on a state highway of equipment that exceeds a certain weight and size limit) or (d) (relating to authorizing TxDMV to issue an annual permit to a motor carrier that allows the motor carrier to operate on a state highway two or more certain vehicles), is required to also pay a highway maintenance fee in an amount determined according to a certain table. SECTION 4. Amends Section 623.163(c), Transportation Code, to authorize TxDMV by rule to exempt a vehicle owned by any other governmental entity from the application of this section. SECTION 5. Effective date: September 1, 2025. BILL ANALYSIS Senate Research Center S.B. 2707 89R5554 JRR-D By: Hagenbuch Transportation 4/16/2025 As Filed Senate Research Center S.B. 2707 89R5554 JRR-D By: Hagenbuch Transportation 4/16/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT S.B. 2707 would ensure the Texas Department of Motor Vehicles can continue to by rule exempt governmental entities from fees and sureties for oversize/overweight vehicle permits or authority. This has been the norm for this program since in was run by the Texas Department of Transportation (TxDOT) years ago and continues now. Some of the main governmental entities using these permits are the U.S. military and TxDOT. S.B. 2707 would make clear that both the company-specific and vehicle-specific version of the annual envelope permit are exempt from the highway maintenance fee. This has been the practice since these permits were created, and hopefully the statute can get clarified. As proposed, S.B. 2707 amends current law relating to certain oversize or overweight vehicle permit fees or surety requirements. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the Texas Department of Motor Vehicles in SECTION 1 (Section 622.134, Transportation Code), SECTION 2 (Section 623.009, Transportation Code), and SECTION 4 (Section 623.163, Transportation Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 622.134(c), Transportation Code, as follows: (c) Provides that Section 622.134 (Surety Bond), rather than Subsection (a) (relating to requiring the owner of a vehicle meeting certain requirements to file with the Texas Department of Motor Vehicles (TxDMV) a surety bond), does not apply to a vehicle owned by a municipality or a county. Authorizes TxDMV by rule to exempt a vehicle owned by any other governmental entity from the application of this section. SECTION 2. Amends Subchapter A, Chapter 623, Transportation Code, by adding Section 623.009, as follows: Sec. 623.009. WAIVER OF PERMIT FEE OR SURETY REQUIREMENT FOR GOVERNMENTAL ENTITIES. Authorizes TxDMV by rule to waive the fee and any surety requirements, including a requirement for a bond or letter of credit, for a permit issued by TxDMV under Subtitle E (Vehicle Size and Weight) to a governmental entity. SECTION 3. Amends Section 623.077(a), Transportation Code, as follows: (a) Provides that an applicant for a permit under Subchapter D (Heavy Equipment), other than a permit under Section 623.071(c)(3) (relating to authorizing TxDMV to issue an annual permit to allow the operation on a state highway of equipment that exceeds a certain weight and size limit) or (d) (relating to authorizing TxDMV to issue an annual permit to a motor carrier that allows the motor carrier to operate on a state highway two or more certain vehicles), is required to also pay a highway maintenance fee in an amount determined according to a certain table. SECTION 4. Amends Section 623.163(c), Transportation Code, to authorize TxDMV by rule to exempt a vehicle owned by any other governmental entity from the application of this section. SECTION 5. Effective date: September 1, 2025.