LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session April 15, 1999 TO: Honorable Bob Turner, Chair, House Committee on Public Safety FROM: John Keel, Director, Legislative Budget Board IN RE: HB2938 by Turner, Bob (Relating to the verification of the social security number and lawful presence in the United States of a driver's license holder or applicant.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB2938, Committee Report 1st House, Substituted: negative impact * * of $(604,178) 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 $(583,388) * * 2001 (20,790) * * 2002 (20,790) * * 2003 (20,790) * * 2004 (20,790) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Change in Number of State * * Year General Revenue Fund Employees from FY 1999 * * 0001 * * 2000 $(583,388) 3.0 * * 2001 (20,790) 0.0 * * 2002 (20,790) 0.0 * * 2003 (20,790) 0.0 * * 2004 (20,790) 0.0 * *************************************************************************** Technology Impact The Technology Impact for the bill is estimated to be $418,555 for the Fiscal Year 2000. Fiscal Analysis The bill would amend the Transportation Code to provide statutory authority for Texas to comply with the Federal Immigration Reform Act. The bill would authorize the Department of Public Safety (DPS) to verify through the Social Security Administration (SSA) the social security numbers for all original, duplicate, or renewal driver's license and personal identification card applicants and existing license holders. The Department would be allowed to deny/cancel a person's driver's license or identification card if the social security number provided by that person did not correspond with the information obtained through SSA. Methodology Assuming that the department would use its full authority to verify social security numbers for each original, duplicate, or renewal driver's license or personal identification card applicant/document holder, it is estimated that implementation of the bill would cost $583,388 in Fiscal Year 2000 and $20,790 for each year thereafter. DPS' Information Management Service (IMS) would incur contract computer programming costs of $408,000 to provide modifications to the Department's Distributed Driver's License and Driver's License Host Systems to allow both on-line and batch verification of social security numbers from the Social Security Administration (SSA). Actual verification of files would occur through the American Association of Motor Vehicle Administrators. The cost for verification of the existing license files is expected to be approximately $36,793 (based on 14,717,414 existing files times $.0025 verification costs per transaction). The cost for verification of each license card applicant is estimated to be $20,790 (based on 692,984 applications times $.03 verification costs per transaction). The Department's License Issuance Bureau (LIB) would have to provide technical support (i,e. development, testing, training, etc.) to address the changes to driver's license issuance applications. LIB would need 2 employees the first year the bill was implemented to handle the additional workload. The Department's Driver Improvement and Control Bureau would need an additional employee the first year of implementation to enact cancellation or denial action against individuals found to have previously given inaccurate information to the Department. If DPS did not use its full authority to implement the provisions of the bill, the cost to the state would not be significant. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 405 Department of Public Safety LBB Staff: JK, MD