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