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