LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session February 22, 1999 TO: Honorable Bob Turner, Chair, House Committee on Public Safety FROM: John Keel, Director, Legislative Budget Board IN RE: HB19 by Goolsby (Relating to denial of the renewal of a driver's license for failure to pay parking tickets.), As Introduced ************************************************************************** * Estimated two-year Net Impact to General Revenue Related Funds for * * HB19, As Introduced: positive impact of $1,316,018 through the * * biennium ending August 31, 2001. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $377,266 * * 2001 938,752 * * 2002 938,752 * * 2003 938,752 * * 2004 938,752 * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable Revenue Probable Change in Number of * * Year Gain/(Loss) from Savings/(Cost) from State Employees from * * General Revenue Fund General Revenue Fund FY 1999 * * 0001 0001 * * 2000 $1,036,613 $(659,347) 2.0 * * 2001 1,036,613 (97,861) 2.0 * * 2002 1,036,613 (97,861) 2.0 * * 2003 1,036,613 (97,861) 2.0 * * 2004 1,036,613 (97,861) 2.0 * ************************************************************************** Technology Impact It is estimated that the technological impact of HB19 would be $602,761 for FY2000 and $66,018 for each year thereafter. Fiscal Analysis The bill would allow DPS to enter into contracts with municipalities to deny renewal of driver's licenses for persons charged with municipal parking violations when those persons fail to make a timely appearance in court to challenge the charge, their fines are past due, and the total amount of their fines exceed $100 in the aggregate. To participate in the program created by this bill, municipalities would be required to include a warning on a parking citation that failure to pay a parking fine may result in the denial of renewal of one's driver's license. Methodology The 1997 Texas Judicial System Annual Report indicates that 19 percent of traffic cases filed are parking violations (1,063,197 cases). DPS estimates that 13 percent of those parking violations could meet the criteria of this bill. Based on the responses by local governments, not all counties and municipalities would participate in the program. Assuming that 50 percent of the local governments would participate, it is estimated that this bill would result in 69,107 additional denial transactions the department would have to evaluate and process annually. DPS would need one additional administrative technician to handle these additional tasks. There would be a much greater impact to DPS' Information Management Service (IMS) regarding computer coding and programming. IMS would need one additional programmer analyst. The bill would have the potential to generate revenue. Those guilty of failure to pay parking tickets would be required to pay a $30 administrative fee, $20 of which would be sent to the Comptroller, $10 of which would be retained in the general fund of the county or municipality participating in the program. Assuming that 75 percent of the persons facing denial of driver's license renewal would pay the $30 fee, it is estimated that the state would collect $1,036,613 in administrative fees per fiscal year. Local Government Impact It is estimated that the units of local government could receive as much as $5,701,369 in additional fee revenue statewide per fiscal year. This estimate is based on 50 percent of the counties and municipalities participating in the program and 75 percent of the persons with delinquent parking fines of at least $100 in the aggregate paying the overdue fines and the administrative fee. Local governments would incur administrative costs to implement the program, somewhat offsetting the additional revenues. Source Agencies: LBB Staff: JK, MD, TL