LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 701 HLS 21RS 1112
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.: HB 636
Date: June 16, 2021 8:48 AM Author: PIERRE
Dept./Agy.: Transportation and Development
Subject: DOTD authority over high-occupancy vehicle lanes Analyst: Alan M. Boxberger
HIGHWAYS EN INCREASE SG EX See Note Page 1 of 2
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 and to exercise police
powers; 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; provides for
exceptions; allows for warnings; 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 this measure do not preclude any police officer from enforcing laws within a
designated HOV lane but does restrict DOTD from issuing an additional citation if already cited. Proposed law authorizes a
$100 reinstatement fee payable to the Office of Motor Vehicles.
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 unimplemented, any such costs are speculative and cannot be estimated.
However, DOTD 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
SEE EXPENDITURE EXPLANATION CONTINUED ON PAGE TWO
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 of $25 to recover the cost of collecting
the penalty.” Additionally, a registered owner who fails to submit payment or otherwise respond to an HOV violation within
30 calendar days may incur a late charge of $5 to cover additional costs 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.
SEE REVENUE EXPLANATION CONTINUED ON PAGE TWO
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
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 701 HLS 21RS 1112
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.: HB 636
Date: June 16, 2021 8:48 AM Author: PIERRE
Dept./Agy.: Transportation and Development
Subject: DOTD authority over high-occupancy vehicle lanes Analyst: Alan M. Boxberger
CONTINUED EXPLANATION from page one: Page 2 of 2
EXPENDITURE IMPACT CONTINUED FROM PAGE ONE
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.
Proposed law will create an expenditure impact to the Department of Public Safety (DPS), Office of Motor Vehicles (OMV)
associated with coding changes to driver’s license system. DPS estimates a one-time SGF cost of $20,000 to make coding
changes. OMV reports that the Office of Technology Services (OTS) would perform this work at an estimated 250 hours of
overtime by an IT Management Consultant Developer (250 hours x $80 per hour = $20,000). The LFO believes that any
additional IT work associated with this legislation will be incremental in nature and the department can potentially
accomplish these tasks utilizing existing resources and budget authority. To the extent that numerous pieces of legislation
are enacted that require additional programming efforts, the department may require additional resources. The LFO
assumes this action will not be taken until such time that DOTD creates an HOV lane and HOV lane permitting process.
OMV reports that it is unable to determine the impact of processing delinquent violations. Each reinstatement staff member
is required to perform 12,000 transactions per year, so any increase in transactions above the agency’s current capacity
would result in the need to add one T.O. position per 12,000 transactions. As there is currently no HOV lane or penalty
mechanism in place, any such change is speculative and dependent upon future creation of such a mechanism.
REVENUE IMPACT CONTINUED FROM PAGE ONE
OMV may realize an indeterminable increase in SGR revenues associated with a $100 reinstatement fee required of violators
who do not timely pay violations and subsequently are unable to renew or reissue a driver’s license or vehicle registration.
The magnitude of any such revenues are speculative and will depend on the creation of HOV lanes, an HOV permitting
process, and the number of HOV violations that are not timely paid.
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