Overall Vote Recommendation

Yes

Principle Criteria

Free Enterprise

Property Rights

Personal Responsibility

Limited Government

Individual Liberty

Digest

HB 4401 would transfer administration, collection, reporting, enforcement, and refund responsibilities for certain fees imposed under Chapter 1006 of the Transportation Code from the Motor Vehicle Crime Prevention Authority to the Comptroller. The bill would authorize the Comptroller to adopt rules, prescribe report forms, adjust report due dates not otherwise set by law, and apply Tax Code procedures to the collection and enforcement of these insurer-paid fees and assessments. It also provides that comptroller rules on administration, collection, reporting, or enforcement would prevail over conflicting authority rules, policies, or procedures.

The bill would require the Motor Vehicle Crime Prevention Authority to reimburse the appropriate general revenue fund account for the comptroller’s costs of administering the fees. The comptroller would certify the estimated biennial cost of those duties to the authority and provide copies of the certification to the Governor’s budget office and the Legislative Budget Board. The certified amount would then be transferred from the authority’s operating account to the appropriate portion of the general revenue fund.

The bill also revises refund and payment procedures. The comptroller, rather than the authority, would determine whether insurer fee payments are sufficient or overpaid, process refund requests under Tax Code procedures, audit or contract for audits of insurer fee payments, assess penalties and interest for delinquent payments or reports, and handle appeals of those assessments. Reports or payments delivered by U.S. mail would be considered filed or paid on the postmark date or another authorized mailing date shown on the envelope.

The underlying insurer fee would remain $5 multiplied by the total number of motor vehicle years of insurance for covered policies. The bill preserves the allocation of fee revenue, including deposits for catalytic converter theft prevention, criminal justice purposes, and trauma facility and emergency medical services funding. It would also require the Comptroller to prepare an annual report accounting for all fees received under Chapter 1006, while the authority would continue reporting on funds it receives and disburses. The bill would take effect January 1, 2025.

Author (1)

Hubert Vo

Contact the Author

Rep. Hubert Vo

Capitol Phone:

(512) 463-0568

Capitol Office:

CAP 4N.8

E-Mail:

[email protected]

Visit Official Website

Fiscal Notes

According to the Legislative Budget Board (LBB), HB 4401 is not expected to have a significant fiscal implication for the state. The LBB fiscal note assumes that any administrative costs associated with transferring collection, refund, reporting, and enforcement responsibilities under Chapter 1006 of the Transportation Code to the Comptroller could be absorbed using existing state resources.

The bill may shift administrative responsibility among state entities, particularly from the Motor Vehicle Crime Prevention Authority to the Comptroller, but the fiscal note does not identify a material net cost or savings to state government. It also does not project a change in fee revenue, since the bill appears to affect who administers the existing fee structure rather than changing the underlying amount of the insurer fee.

For local governments, the LBB anticipates no fiscal implication. The fiscal note does not identify any new local duties, costs, revenue effects, or reimbursement requirements. Overall, the fiscal impact is best characterized as administratively neutral or minimal, with any state implementation costs expected to be handled within existing agency capacity.

Vote Recommendation Notes

Texas Policy Research recommends that lawmakers vote YES on HB 4401. The bill is primarily an administrative transfer bill. It moves collection, refund, audit, reporting, and enforcement responsibilities for Motor Vehicle Crime Prevention Authority insurer fees from the authority to the Comptroller. The bill analysis frames the measure as an effort to address procedural gaps involving due process, voluntary disclosure, and refund claims by placing these functions under the Comptroller’s established tax administration framework.

From a limited-government perspective, the bill does expand the Comptroller’s formal role and grants rulemaking authority over administration, collection, reporting, and enforcement of these fees. That is a governance cost. However, the bill does not create a new fee, raise the existing insurer fee, create a new criminal offense, or establish a new program. Instead, it centralizes administration of an existing fee in an agency already responsible for tax collection and refund procedures. The bill analysis indicates that Tax Code procedures would apply to refund requests and appeals, which may improve predictability and procedural clarity for regulated insurers.

The fiscal note supports a favorable recommendation because the LBB anticipates no significant fiscal implication to the state and no fiscal implication to local governments. Any implementation costs are assumed to be absorbable within existing resources. The bill also requires the Motor Vehicle Crime Prevention Authority to reimburse the appropriate general revenue account for the Comptroller’s administrative expenses, which helps limit open-ended taxpayer exposure.

On balance, the bill appears to improve administrative consistency and due-process structure without materially increasing fiscal burden, creating new regulatory obligations, or expanding the underlying fee. The main liberty concern is the additional rulemaking authority granted to the Comptroller, but that authority is tied to administering an existing statutory fee rather than creating a broader regulatory program.

Free Enterprise

For insurers, the bill may improve predictability by placing fee collection, audits, appeals, and refunds under the Comptroller’s established tax-administration framework. That could reduce procedural uncertainty, though the bill does not eliminate the fee or reduce the underlying regulatory burden on insurers.

Property Rights

The bill does not directly affect land use, ownership, takings, or control of private property. It concerns the administration of an existing insurer-paid fee.

Personal Responsibility

The bill does not materially change individual choice, personal conduct, or dependency on government. It preserves the existing insurer fee and changes the state entity responsible for administering it.

Limited Government

The bill gives the Comptroller new rulemaking and administrative authority, which is a limited-government concern. However, it does not create a new agency, program, or fee, and it consolidates administration of an existing fee within an agency already responsible for similar tax and fee functions. The LBB also anticipates no significant fiscal implication to the state and no fiscal impact to local governments.

Individual Liberty

The bill does not impose new mandates on individuals or create new penalties for the public. Its main liberty benefit is procedural: insurer refund claims and appeals would be handled under Comptroller and Tax Code procedures rather than the Motor Vehicle Crime Prevention Authority’s existing process, which may provide clearer due process structure.

Related Legislation

SB 2998 (Same As)

View Bill Text and Status