LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session April 12, 1999 TO: Honorable Bob Turner, Chair, House Committee on Public Safety FROM: John Keel, Director, Legislative Budget Board IN RE: HB3641 by Turner, Bob (Relating to license denial, suspension, or revocation.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB3641, As Introduced: positive impact of $664,400 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 $279,400 * * 2001 385,000 * * 2002 385,000 * * 2003 385,000 * * 2004 385,000 * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable Revenue Probable Revenue Probable * * Year Gain/(Loss) from Gain/(Loss) from Savings/(Cost) from * * General Revenue Fund State Highway Fund General Revenue Fund * * 0001 0006 0001 * * 2000 $385,000 $280,000 $(105,600) * * 2001 385,000 280,000 0 * * 2002 385,000 280,000 0 * * 2003 385,000 280,000 0 * * 2004 385,000 280,000 0 * ************************************************************************** Technology Impact The Technology Impact for the bill is estimated to be $105,600 for Fiscal Year 2000. Fiscal Analysis The bill would amend the Transportation Code as it relates to the denial, suspension, or revocation of a driver's license. The bill would require the Department of Public Safety (DPS) to send notification of a driver's license suspension or revocation by first class mail. Notification would be considered to be received by the fifth day after mailing. A person so notified would have 15 days following receipt to request a hearing. Failure to request a hearing or failure to do so in a timely manner would result in a 90 day license suspension effective 40 days after the date the person would be considered to have received notice. All hearing requests would be subject to a $50 data processing fee. Methodology The Department's Information Management Service would incur contract programming costs of $105,600 to modify existing programs regarding notification of persons subject to suspension or revocation action by the Department. DPS staff would absorb on-going maintenance of the program. In Fiscal Year 1998, the Department scheduled 28,000 administrative hearings of the type addressed by the bill. There was a 25 percent suspension/revocation rate for those hearings. DPS estimates that under the provisions of the bill, fewer hearings and more suspension/revocations would occur. DPS expects that 20 percent (5,600) of the licensees would request a hearing, resulting in 22,400 suspension/revocation actions. For each of those suspension/revocation actions, a reinstatement fee of $50 would be required for compliance. Currently, the compliance rate in suspension/revocation cases is approximately 50 percent and produces approximately $175,000 for the General Revenue Fund. If the 50 percent compliance rate continues, an additional $385,000 would be generated, annually. The new $50 data processing fee from each of the estimated 5,600 hearing requests could provide additional revenue of as much as $280,000 per year. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 360 State Office of Administrative Hearings, 601 Department of Transportation, 405 Department of Public Safety, 304 Comptroller of Public Accounts LBB Staff: JK, MD