LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 21, 1997
         
         
      TO: Honorable Bill Ratliff, Chair            IN RE:  Senate Bill No. 184
          Committee on Finance                              By: Shapiro
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB184 ( Relating 
to a driver's license that authorizes the operation of a motorcycle.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB184-As Introduced
         
Implementing the provisions of the bill would result in a net 
positive impact of $165,814 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 increase the 
application, examination, and renewal fees for driver licenses 
that include or add authorization to drive a motorcycle by $5.00.

In 
addition, the bill would create a new, dedicated Motorcycle 
Education Fund (account) in the General Revenue Fund.  The bill 
would require the Department of Public Safety (DPS) to send 
to the Comptroller for deposit, to the credit of the account, 
$5 from each of the following increased fees:  the fee for renewal 
of a commercial license or learner's permit that includes authorization 
to operate a motorcycle (to $45 from $40); the examination fee 
for a commercial license for additional authorization to operate 
a motorcycle (to $15 from $10); the fee for renewal of a driver 
license that includes authorization to operate a motorcycle 
(to $21 from $16); and the application fee for driver license 
applicants applying for additional authorization to operate 
a motorcycle (to $15 from $10).  

The revenue in the newly-established 
account would be dedicated to defray the cost of administering 
the motorcycle operating training and safety program.  The account's 
unspent and unencumbered balance could be appropriated for the 
motorcycle operator training and safety program or any other 
purpose relating to maintaining or policing highways, supervising 
traffic, or promoting safety on highways.  The net gain to the 
Motorcycle Education Fund would allow the Motorcycle Safety 
Bureau to establish, at least, two additional training programs. 
 In addition, the Bureau could fully staff a second mobile training 
unit to serve rural communities.
 
Methodolgy
 
The anticipated revenue gain from the bill each year was determined 
by DPS as follows:  There are approximately 25,000 new applicants 
and 21,369 Commercial Drivers License applicants for a motorcycle 
license annually that would pay the additional $5.00 required 
by the bill.  

To implement the additional fee, DPS Information 
Management Service would have to reprogram the Distributed Drivers 
License System computer.  Two contract programmers would be 
needed for a four month period to modify the computer system.
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           
            Gain/(Loss) from   Savings/(Cost)                                                             
            New - GR           from New - GR                                                              
            Dedicated -        Dedicated -                                                                
            Motorcycle         Motorcycle                                                                 
            Education Fund     Education Fund                                                             
            Account            Account                                                                    
            NEW-DED            NEW-DED                                                                     
       1998          $231,845        ($297,876)                                                      
       1998           231,845                                                                        
       2000           231,845                                                                        
       2001           231,845                                                                        
       2002           231,845                                                                        
 
 
         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                   $0
               1999                    0
               2000                    0
               2001                    0
               2002                    0
 
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   405   Department of Public Safety
                                         304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,RR ,RS