LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 7, 1997
TO: Honorable Keith Oakley, Chair IN RE: Senate Bill No. 255, Committee Report 2nd House, as amended
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-Committee Report 2nd House, as amended
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
The bill would amend 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.
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.
The bill also
would allow 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