LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 15, 1997 TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 1069 Committee on State Affairs By: Moncrief Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB1069 ( Relating to the release and use of certain personal information from motor vehicle records.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB1069-As Introduced 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 The bill would amend Texas statute by implementing the Driver Privacy Protection Act, regarding privacy of information gathered and recorded by certain agencies of the state and would prevent the Department of Public Safety or the Department of Transportation from disclosing specified personal information without written consent from the person unless one of several exceptions is met. The bill would also prohibit the disclosure of thumb or finger images unless that disclosure is authorized by law. The bill would also allow those agencies to set fees for the disclosure of information in the motor vehicle files and require those agencies to maintain records for five (5) years relating to the disclosure of affected information. The bill would take effect September 1, 1997. Methodolgy This bill would require that each person be given an opportunity to decide whether or not to consent to the release of certain personal information from the 16,000,000 driver s license and personal identification records. The major operational and fiscal impact of the bill would fall in several areas. There would be the need for computer systems reprogramming to designate each individual s decision and choice and for a mass mailing of a questionnaire, with the subsequent expense of forms, envelopes and postage, to each record holder. Individual choices would have to be entered onto each record and the returned items would need to be microfilmed as part of the permanent record. Legal Services would be affected regarding documentation and possible litigation related to the implementation of this bill and would be required to create rules concerning use of information in marketing and surveys by January 1, 1998. Though not specifically stated in the bill, there is a presumption that an individual would have to be afforded some opportunity and method to change the decision originally made. Therefore, there would be some continuing costs. During Fiscal Year 1996, the Department of Public Safety generated $41,276,948 in revenue raised through the sale of information from the affected records. Because many individuals could be expected to choose to withhold personal information, interest in obtaining DPS records for some commercial purposes is expected to decline. Eventually, some loss of revenue is possible due to the provisions of the bill. The Texas Department of Transportation maintains records on 15 million registered vehicles. For purposes of estimating the fiscal impact of this bill, it is estimated that 25% of the estimated 15 million registered vehicles, or 3,750,000, will request their personal information not be disclosed. It is also assumed that a majority of persons who choose that their personal information not be disclosed will choose to withhold personal information for both the release of information for bulk/commercial requests and individual requests. 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 State State Highway Fund Employees from Highway Fund FY 1997 0006 0006 1998 ($12,189,752) $840,000 23.0 1998 (789,429) 882,000 19.0 2000 (802,177) 924,000 19.0 2001 (802,177) 966,000 19.0 2002 (802,177) 1,008,000 19.0 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 $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. No fiscal implication to units of local government is anticipated. Source: Agencies: 405 Department of Public Safety 601 Department of Transportation LBB Staff: JK ,JD ,GG ,RS