LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 6, 1997
         
         
      TO: Honorable Kenneth Armbrister, Chair            IN RE:  Senate Bill No. 255, Committee Report 1st House, Substituted
          Committee on State Affairs                              By: Nixon
          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 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 1st House, Substituted
         
Implementing the provisions of the bill would result in a net 
impact of $0 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 include school districts in the definition of 
driver education and driver safety schools, thereby requiring 
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, and requires 
the agency to generate fee revenue sufficient to cover the cost 
of administering the Act.  

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
 
TEA estimates that approximately 2,200 public school instructors 
would 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.  Under TEA requirements, 
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.  TEA estimates that an additional 12.3 full 
time equivalents (FTEs) are needed to implement the provisions 
of the bill; the total estimated cost of implementation is $850,000 
in FY 1998 and $765,960 in subsequent years. The cost of the 
database is estimated to be $84,000 in 1998. The bill would 
allow TEA to charge up to $6 for each certificate.

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)          $850,000              12.3                                    
       1998         (765,960)           765,960              12.3                                    
       2000         (765,960)           765,960              12.3                                    
       2001         (765,960)           765,960              12.3                                    
       2002         (765,960)           765,960              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                   $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.
          
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:   
                                         
                      LBB Staff:   JK ,JD ,UP