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