TITLE 31.NATURAL RESOURCES AND CONSERVATION

Part 2. TEXAS PARKS AND WILDLIFE DEPARTMENT

Chapter 53. FINANCE

Subchapter A. LICENSE FEES AND BOAT AND MOTOR FEES

31 TAC §53.10

The Texas Parks and Wildlife Commission adopts an amendment to §53.10, concerning Vessel and Motor Fees Set by Commission, without changes to the proposed text as published in the April 25, 2003, issue of the Texas Register (28 TexReg 3480).

Registration, title and transfer fees for boats have not increased since 1996. During the intervening time, inflation has significantly increased the costs of doing business (such as the cost of office space, utilities, postage, fuel and equipment). Further, increases in the number of boats on Texas waters have required additional boating enforcement related efforts and have led to increases in demand for related services. For example, there has been a rise in the number of complaints related to boat theft and dealer fraud. Due to these factors, TPWD has experienced cost increases related to: Boating While Intoxicated (BWI) enforcement and related equipment such as portable breathalyzer tests (PBTs); boat dealer fraud and boat theft investigations; boater accident investigation training; boating equipment ; and redesign of the boat computer system.

Boat-related fees have not kept pace with inflation and increased demand; therefore, the amendment is necessary to enable the department to maintain current levels of service associated with discharging statutory obligations to register and track boat ownership in the state and to enforce safe boating and Boating While Intoxicated Laws.

The fee increases were determined on the basis of a number of factors, including Consumer Price Index (CPI) increases and the need to recoup administrative costs associated with certain transactions. Analysis of CPI indicates an increase in the cost of living of approximately 17% since 1996. A number of the fee increases were proposed based on this calculation. Other fee increases were based on the need to adequately recoup administrative costs. Administrative costs incurred by the department in issuing registration, titles, transfers, and duplicates include those associated with receiving, tracking and processing documentation, correspondence with the vessel owner, and paper and mailing.

The department monitors boat license fees or permits and licenses in other states, particularly those with comparable boating activity. The fees as adopted are in line with registration and licensing costs in other states.

All fees established by this rulemaking have been set by the Texas Parks and Wildlife Commission and were not mandated by the legislature.

The amendment to §53.10 will function by increasing registration, title, and transfer fees for vessels. Registration transactions conducted under the rule will result in a two-year period of validity for the required documentation affected by each.

The department received 35 comments opposing adoption of the proposed rule. Of those comments, the following were the comments expressing a specific reason or reasons for opposition.

COMMENT: Five commenters opposed adoption of the rules because of fixed-income status.

AGENCY RESPONSE: The agency, while sympathetic to those with fixed incomes, disagrees and responds that the fee increases are necessary but not burdensome. The amount of the fee increases is between $5 and $20. As the recurring fees proposed for increase (registration) cover a 2 year period, the fee increase for registrations would result in an annual increase of between $2.50 and $10. No changes were made as a result of the comments.

COMMENT: Nine commenters opposed adoption of the rules, stating there is no evidence of what the agency does.

AGENCY RESPONSE: The department disagrees with the comment and responds that the department provides a number of required services to the boating public, including boat patrols by game wardens, enforcement of BWI laws, boater safety and education, and related administrative functions. By statute, the department’s activities and performance are monitored and reported to a variety of oversight entities. The department has raised fees only to the extent necessary to continue to provide the services at their current level of effectiveness. No changes were made as a result of the comments.

COMMENT: Fifteen commenters opposed adoption, stating that the department should reduce expenses and cut waste.

AGENCY RESPONSE: The department disagrees with the comments and responds that over the last two years, the department has exhaustively reviewed its operations. The agency has also implemented a hiring freeze, eliminated all non-essential travel, reduced capital expenditures and has instituted a number of internal measures to identify and correct inefficiencies and duplicated efforts. No changes were made as a result of the comments.

COMMENT: Six commenters opposed adoption because of the current economic environment.

AGENCY RESPONSE: The department disagrees and responds that the fee increases are necessary in order to maintain current levels of service. In addition, the relatively low amount of the fee increases should not be burdensome, even in the current economic climate. No changes were made as a result of the comments.

COMMENT: One commenter opposed adoption of the rules, stating that the fee increases would price people out of boating.

AGENCY RESPONSE: The department, while extremely sensitive to such issues, must disagree with the comments, and responds that the amount of the fee increases is between $5 and $20. Of these, the recurring fees (registration) cover a two-year period, meaning the fee increase would result in an annual increase of between $2.50 and $10. Especially when compared with other costs associated with boating, the fee increase should not discourage participation. No changes were made as a result of the comments.

COMMENT: One commenter opposed adoption of the proposed rule on the basis that fees should be based on boat size.

AGENCY RESPONSE: The department agrees that the fee should be based on boat size and the fee structure proposed and adopted is based on boat size. As a result, no changes were made based on this comment.

COMMENT: One commenter opposed adoption of the proposed rule, stating that fees should be established by referendum.

AGENCY RESPONSE: The agency disagrees with the comment and responds that the current statutory mechanism for setting boat fees provides for the fees to be set by the Texas Parks and Wildlife Commission. There is no statutory provision for the establishment of boat fees by referendum.

COMMENT: Three commenters opposed adoption of the proposed rule in general, offering no specifics.

AGENCY RESPONSE: The agency disagrees with the comments in the sense that the fee increases are necessary and justified, but cannot respond to the comments because the specific nature of opposition is unknown. No changes were made as a result of the comments.

The department received 23 comments supporting adoption of the proposed amendment.

The amendment is adopted under Parks and Wildlife Code, §§31.026, 31.037, 31.047, and 31.048, which authorize the commission to set fees for the issuance of original or renewal certificates of vessel numbers, duplicates, and transfers, and certificates of title and expedited certificates of title for boats.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 4, 2003.

TRD-200303391

Gene McCarty

Chief of Staff

Texas Parks and Wildlife Department

Effective date: June 24, 2003

Proposal publication date: April 25, 2003

For further information, please call: (512) 389-4775