LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 16, 1999
TO: Honorable Bob Turner, Chair, House Committee on Public
Safety
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB90 by Driver (Relating to an intermediate driver's
license and to discounts in motor vehicle insurance
premiums for holders of that license.), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB90, As Introduced: negative impact of $(3,633,501) 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. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $(3,032,392) *
* 2001 (601,109) *
* 2002 (601,109) *
* 2003 (601,109) *
* 2004 (601,109) *
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All Funds, Five-Year Impact:
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*Fiscal Probable Savings/(Cost) from Change in Number of State *
* Year General Revenue Fund Employees from FY 1999 *
* 0001 *
* 2000 $(3,032,392) 11.0 *
* 2001 (601,109) 11.0 *
* 2002 (601,109) 16.0 *
* 2003 (601,109) 16.0 *
* 2004 (601,109) 16.0 *
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Technology Impact
It is estimated that the Technology Impact for the bill would be
$2,777,652 for FY2000; $214,330 for each year thereafter.
Fiscal Analysis
The bill would create an "intermediate driver's license" for a person
between the ages of 16 and 18 and set restrictions on the hours when
such a person would be allowed to drive. The intermediate license would
be optional until January 2001. Holders of the license would be
eligible for a motor vehicle insurance discount. The bill would also
create a definition for a "traffic offense". A driver's license
applicant possessing an intermediate license and found guilty of
committing such an offense would be ineligible, under certain
conditions, for a Class A, B, or C driver's license.
Methodology
It is estimated that the Department of Public Safety's (DPS) Information
Management Service (IMS) would incur costs of $2,560,000 for contract
computer programming to make the necessary changes related to driver's
license class designations, age programs, computer screen layouts, and
applicant ineligibility status. IMS would also need 2 programmer
analysts, 1 systems programmer and 1 administrative technician to carry
out the project.
According to DPS, 358,310 driver's license applicants would be affected
annually by the bill. After January 2001, when the intermediate license
would become mandatory, a substantial number of these individuals would
likely apply for a hardship license to avoid the driving restrictions of
the intermediate license. Assuming that 25 percent would apply for a
hardship license, DPS would have to perform evaluations for 89,578
additional hardship applicants per year. It is estimated that DPS would
need 12 additional driver's license field office personnel to handle the
additional workload beginning in Fiscal Year 2002.
In addition, DPS' License Issuance Bureau would need seven additional
technical assistance personnel the first two years the bill was
implemented to provide technical support to driver's license field
offices for the changes to the driver's license system.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated.
Source Agencies: 405 Dept Of Public Safety, 454 Department Of
Insurance
LBB Staff: JK, MD, BP