LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  February 25, 1997
         
         
      TO: Honorable Allen Place, Chair            IN RE:  Senate Bill No. 35, As Engrossed
          Committee on Criminal Jurisprudence                              By: West, Royce
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB35 ( Relating 
to operating a vehicle while intoxicated or under the influence 
of alcohol by a minor and other actions of a minor concerning 
the acquisition, possession, and use of alcohol; providing penalties.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB35-As Engrossed
         
Implementing the provisions of the bill would result in a net 
impact of $3,000,000 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 Alcoholic Beverage Code by creating 
the offense of Driving Under the Influence of Alcohol by a Minor. 
 This offense would apply to any person under the age of 21 
driving with any detectable amount of alcohol in his or her 
system.  

This provision of the bill would affect Texas' 
eligibility for federal funding.  According to Section 320, 
Title 23, U.S. Code, Texas must enact a zero-tolerance law for 
minors driving with a Blood Alcohol Content (BAC) content of 
.02 or greater to avoid losing approximately $38 million in 
federal fiscal year 1999 for  federal highway construction funds 
and $77 million each year thereafter.  

In addition, the 
zero-tolerance provision and the driver's license suspension 
provision would assist the state in meeting eligibility for 
National Highway Traffic Safety Administration grant funding 
of up to $2.8 million each fiscal year for up to five years.

The 
bill would also increase the available punishment options available 
for minors convicted of alcohol related offenses.  Punishment 
could include a combination of a fine, community service,  driver's 
license suspension or denial, or confinement in jail on the 
third and subsequent offenses.

The bill would also amend 
the Transportation Code by increasing the period of driver's 
license suspension for minors convicted of  motor vehicle related 
alcohol offenses. 

 
Methodolgy
 
It is estimated that there would be approximately 5,000 additional 
license suspensions for Driving Under the Influence (requiring 
a $100 driver's license reinstatement fee) and 20,000 cases 
involving Minor in Possession of Alcoholic Beverage suspensions 
(requiring a $50 reinstatement fee).  The estimate allows for 
17 additional employees to meet the additional legal, information 
systems, and administrative workload requirements of the bill.

Due 
to the additional sanctions, it is anticipated that the 5,000 
suspensions would result would result in a hearing request rate 
of 40% or 2,000 hearings per year.  (The current rate is 20% 
per year.)

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           Probable Revenue   Change in Number   
            Savings/(Cost)     Gain/(Loss) from   of State                                                
            from State         General Revenue    Employees from                                          
            Highway Fund       Fund               FY 1997                                                 
            0006               0001                                                                        
       1998      ($1,038,157)        $1,500,000              17.0                                    
       1998         (668,208)         1,500,000              17.0                                    
       2000         (668,208)         1,500,000              17.0                                    
       2001         (668,208)         1,500,000              17.0                                    
       2002         (668,208)         1,500,000              17.0                                    
 
 
         Net Impact on General Revenue Related Funds:
 
The probable fiscal implication to General Revenue related funds 
during each of the first five years is estimated as follows:
 
              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related Funds
                                             Funds
               1998           $1,500,000
               1999            1,500,000
               2000            1,500,000
               2001            1,500,000
               2002            1,500,000
 
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
          
No significant fiscal implication to units of local government 
is anticipated.
          
   Source:            Agencies:   
                                         
                      LBB Staff:   JK ,CB ,RS