LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
February 13, 1997
TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 255
Committee on State Affairs By: Harris
Senate
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.) this office
has detemined the following:
Biennial Net Impact to General Revenue Funds by SB255-As Introduced
Implementing the provisions of the bill would result in a net
negative impact of $(1,300,000) 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 public school districts with driver
training programs to operate those programs under the regulations
of the TDTSEA, as well as under the current rules of the State
Board of Education and the Texas Education Agency.
The
bill authorizes the TEA to employ as many persons as the agency
deems necessary to administer the additional regulatory authority
under TDTSEA.
TEA would establish a database available
electronically to the Department of Public Safety; licensed
driver training schools and public driver training schools would
submit student records through an Internet connection to the
database.
Methodolgy
Approximately 2,200 public school instructors are expected to
apply for an instructor license and an estimated 1,000 public
schools would apply for licensing, assuming they wish to continue
providing driver education courses. Each school is required
to submit a director application; a fee is also associated with
certification of additional staff members. All 1,000 school
locations are subject to inspection prior to licensure. The
agency estimates that an additional 12.3 FTEs are needed to
implement the provisions of the bill, at a cost of $850,000.
While
SB 255 does not explicitly provide for an increase in fee revenue
to the agency, additional revenue of approximately $55,000 for
instructor licenses and $45,000 for director and administrative
staff licenses would be generated annually. In 1999, the 1,000
school sites would also be required to begin paying an annual
renewal fee of $200, generating $200,000 in revenue. These
increases total $100,000 in FY 1998 and $300,000 beginning in
FY 1999.
The State Board of Education may, through rule-making
authority, increase certification fees to generate sufficient
revenue to offset the costs of meeting the provisions of SB
255. This fiscal note does not assume such an increase.
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 ($850,000) $100,000 12.3
1998 (850,000) 300,000 12.3
2000 (850,000) 300,000 12.3
2001 (850,000) 300,000 12.3
2002 (850,000) 300,000 12.3
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 ($750,000)
1999 (550,000)
2000 (550,000)
2001 (550,000)
2002 (550,000)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
The Bill requires each driver education school to electronically
submit student records to the Department of Pubic Safety via
the Internet. School districts would need to acquire Internet
connections and appropriate database software and computer equipment
if they do not already have the applicable systems. Consequently,
implementing the provisions of SB 255 would result in a cost
to local school districts which do not have the necessary equipment.
Source: Agencies: 601 Department of Transportation
701 Texas Education Agency - Administration
LBB Staff: JK ,JD ,UP