LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 5, 1997 TO: Honorable Keith Oakley, Chair IN RE: Senate Bill No. 255, As Engrossed Committee on Public Safety By: Harris House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB255 ( Relating to the regulation of driver's training courses and to certificates issued on completion of such courses.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB255-As Engrossed Implementing the provisions of the bill would result in a net positive impact of $48,000 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 Senate Bill 255 amends the Texas Driver and Traffic Safety Education Act (TDTSEA) to require a public school district to operate a driver education school under a Texas Education Agency (TEA) program that is consistent with TDTSEA. Licensed driver education schools would be allowed to issue instruction permits directly to students upon successful completion of the classroom phase of driver education. TEA would assume substantial new regulatory authority under TDTSEA, including investigation and enforcement powers. The bill directs TEA to establish a driver education certificate database available electronically to the Texas Department of Public Safety. Licensed driver training schools and public driver training schools would submit student records through an Internet connection to the database. The commissioner of education could waive this electronic submission requirement for school districts. SB 255 also allows the TEA to employ as many persons as necessary to administer its new regulatory authority under TDTSEA, and directs the agency to adopt rules and set fees sufficient to cover the cost of implementing the provisions of the legislation. This legislation would take effect September 1, 1997. Methodolgy Approximately 2,200 public school instructors (at 1,000 public school sites) are expected to apply for an instructor license. It is estimated that an additional 6 FTEs will be needed to implement this legislation. This would increase the current expenditures at TEA by an estimated $432,000 in FY 1998 and $396,000 in subsequent years. TEA would administer and maintain a database with Internet connections for licensed driver training schools and public driver training schools. These functions can be provided through current resources in the Division of Driver Training. Additional annual fees of approximately $55,000 for instructor licenses would be collected from public school driver training instructors. In addition, rule changes could be made to increase certificate charges and would result in $383,000 in additional revenue. These changes would increase the cost of student certificates to $3.30 for both public and private school students. The increase for public school students would be $2.30 per certificate and $1.30 per certificate for private school students. The total increase in revenue is estimated to be $438,000 per year. SB 255 would allow the TEA to raise certificate fees to $6. 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 General General Revenue Employees from Revenue Fund Fund FY 1997 0001 0001 1998 ($432,000) $438,000 6.0 1998 (396,000) 438,000 6.0 2000 (396,000) 438,000 6.0 2001 (396,000) 438,000 6.0 2002 (396,000) 438,000 6.0 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 $6,000 1999 42,000 2000 42,000 2001 42,000 2002 42,000 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. The approximate cost of equipment and setup for a desktop system and internet connection for a district to meet the reporting requirement is $3,240. Many school districts already have adequate equipment and internet access. Districts would be responsible for an annual internet connection ($200 per year) and staff for data entry. School districts would pay an additional $2.30 per driver education certificate purchased, and public school instructors would purchase an instructor license for $25. The Texas Education Code allows public school districts to charge a fee for driver education; therefore, the costs could be transferred to students. SB 255 also allows the agency to waive this requirement. Source: Agencies: 405 Department of Public Safety 701 Texas Education Agency - Administration LBB Staff: JK ,CB ,UP