LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 636 HLS 21RS 818
Bill Text Version: ORIGINAL
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: April 25, 2021 2:00 PM Author: PIERRE
Dept./Agy.: Transportation and Development
Subject: Analyst: Alan M. Boxberger
HIGHWAYS OR INCREASE SG EX See Note Page 1 of 1
Provides relative to the Department of Transportation and Development's authority over high-occupancy vehicle lanes on
state highways
Proposed law authorizes the secretary of DOTD to designate high-occupancy vehicle (HOV) lanes on any highway in the state
highway system and to exercise police powers as necessary to maintain the peace; requires any travel lane designated as
HOV to be used for the exclusive use of HOVs; authorizes DOTD to establish permitting requirements to authorize access to
HOV lanes; provides for violations; provides for establishment of an HOV fine not to exceed $100; provides the registered
owner is liable for payment of penalties, fees and charges whether operating the vehicle at the time of the infraction or not;
provides for exceptions; provides for penalty collection processes; authorizes penalties for late payments or failure to pay;
provides for timelines; provides for video recording, photograph or other electronic data to be admissible in an HOV violation
proceeding; authorizes the department to hire or contract for an appropriate workforce necessary to carry out the provisions
of this measure; provides that these provisions do not preclude any police officer from enforcing laws within a designated
HOV lane but does restrict the department from issuing an additional citation if already cited by a police officer.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW $0 $0 $0 $0 $0
Agy. Self-Gen. INCREASE INCREASE INCREASE INCREASE INCREASE
Ded./Other SEE BELOW $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. INCREASE INCREASE INCREASE INCREASE INCREASE
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
Proposed law will likely increase SGR expenditures within the LA Department of Transportation and Development associated with
developing High Occupancy Vehicle (HOV) lane permitting and enforcing usage thereof. While this fiscal note denotes potential
expenditure impacts to SGR means of financing, any lack of SGR resources is assumed to require one-time or recurring expenditures out
of the SGF or statutory dedications out of the Transportation Trust Fund - Regular. Proposed law authorizes the secretary of DOTD to
exercise the police powers of the state as necessary to maintain the peace and accomplish the orderly handling of his authority to
designate high-occupancy vehicle (HOV) lanes on any highway in the state highway system. The department is authorized to establish
permitting requirements for motor vehicles using HOV lanes, including registration of the HOV with the department prior to utilizing the
lane. Assuming the department exercises its authority to establish permitting requirements for, and police the usage of, HOV lanes, the
department is likely to realize significant expenditures associated with permitting and enforcement activities.
As these activities are currently undefined and unplanned, any such costs are speculative and cannot be estimated. However, the
department is likely to realize significant expenditures to capitalize an enforcement mechanism (either personnel and vehicles or electronic
monitoring technology) and will potentially require additional recurring personnel expenditures to process violations if such workload is
significant, such as the department violation clerk referenced in the measure. The department will be required to provide violation notices
by first-class mail to the registered owner of the motor vehicle at the owner’s address of record. The department shall be required to
notify the Office of Motor Vehicles of delinquent violation payments and OMV shall not renew the driver’s license of the registered owner
until after notice from the violation clerk that the matters have been disposed of in accordance with law.
REVENUE EXPLANATION
Proposed law will likely increase SGR revenues to DOTD associated with HOV lane violations, administrative fees and penalties for late
payment. Proposed law provides that “where a record generated by an HOV monitoring system shows an HOV violation by a motor
vehicle, the vehicle's registered owner shall be liable to make prompt payment to the department of the proper penalty and, except as
provided in this Section, an administrative fee to recover the cost of collecting the penalty.” Due to the language stipulating “payment to
the department,” the LFO assumes the intent of this legislation is to accrue any permitting and penalty collections to the department as
self-generated revenues and that payments for violations are not intended to accrue to the local governing authority of the jurisdiction
where the violation occurs.
Proposed law provides that the penalty for an HOV violation shall be a fine of not more than $100. DOTD is further authorized to assess
certain penalties for late payment. The administrative fee and penalty amount for late payment are not specified in this measure and
assumed to be established by future administrative rule making by the department. The magnitude of any such potential revenues is
speculative and cannot be estimated.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Christopher A. Keaton
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Legislative Fiscal Officer