LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 30, 1997
TO: Honorable Bob Bullock Honorable James E. "Pete" Laney
Lieutenant Governor Speaker of the House
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB1200 ( relating
to the period of validity of and fees for a driver's license,
learner's permit, or personal identification certificate.) this
office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB1200-Conference Committee Report
Implementing the provisions of the bill would result in a net
positive impact of $57,600,000 to General Revenue Related Funds
through the biennium ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would amend the Transportation Code to change the expiration
date of a driver's license from the fourth anniversary of the
date of the application to the sixth anniversary of the date
of application beginning September 1, 1997. Certificates issued
to those persons 60 years of age or older would not expire.
Commercial driver's licenses or commercial driver learner's
permits would expire six years after the applicant's next birthday.
The bill would change the license and certificate fee structure.
The fee for the six-year driver's license would increase from
the current $16 to $24. The fee for a personal identification
certificate would increase to $15 from the current $10 for a
person under 60 years of age. For a person 60 years of age
or older, it would be $5.
The bill would increase the commercial
driver's license or commercial driver learner's permit fee from
$40 to $60. If a commercial driver's license or commercial
driver learner's permit included authorization to operate a
motorcycle or moped, the fee for the license or permit would
be increased by $8.
The bill states that the Department
of Public Safety (DPS) by rule may provide for the staggered
expiration of licenses, permits, and certificates so that a
proportionate number of licenses, permits, and certificates
would expire each year. The fees would be prorated accordingly.
Methodolgy
This estimate assumes that in fiscal year 1998, DPS would issue
4.7 million Class C driver's licenses and 245,000 renewal or
duplicate identification cards. Under current law, the DPS
is expected to generate an estimated $70.1 million in drivers'
license fees and an additional $2.45 million in personal identification
fees in fiscal year 1998.
Based on estimates of drivers'
licenses obtained from the DPS and population projections made
by the Comptroller of Public Accounts, about 20.5 percent of
all Class C licenses issued are of the $10 replacement variety.
The remaining 79.5 percent are issued as original licenses.
The proposed fee structure would raise the fees generated by
Class C licenses and personal identification cards. Using the
same ratio of 20.5 percent for replacement licenses and 79.5
percent for original licenses, the DPS would be expected to
generate an additional $28.6 million in Class C license and
personal identification fees in fiscal year 1998, increasing
to $30.6 million in 2001. There would also be some revenue
gain from the increase in fees for commercial drivers' licenses.
Following the completion of the four year conversion period
in 2002, the revenue from the issuance of Class C licenses and
personal identification cards under the fee structure proposed
by this bill could drop by $61.4 million. A pattern of four
years of revenue gains followed by two years of revenue losses
relative to current law would continue for some period, even
after factoring in revenue gains from new drivers.
Although
the bill states that the DPS can stagger expiration dates for
licenses, permits, and certificates and prorate the fees accordingly,
this estimate includes no proration of fees.
This fiscal
note contains cost information that was previously not available
from the DPS in a timely manner. The appropriations bill contains
a contingency rider covering these costs.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Revenue Probable Change in Number
Gain/(Loss) from Savings/(Cost) of State
General Revenue from State Employees from
Fund Highway Fund FY 1997
0001 0006
1998 $28,600,000 ($1,186,153) 3.0
1998 29,000,000 (142,688) 3.0
2000 29,500,000 (142,688) 3.0
2001 30,600,000 (142,688) 3.0
2002 (61,400,000) (142,688) 3.0
Net Impact on General Revenue Related Funds:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $28,600,000
1999 29,000,000
2000 29,500,000
2001 30,600,000
2002 (61,400,000)
No significant fiscal implication to units of local government
is anticipated.
Source: Agencies: 304 Comptroller of Public Accounts
405 Department of Public Safety
LBB Staff: JK ,JD ,CB ,MG