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
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* 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. *
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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 *
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All Funds, Five-Year Impact:
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*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 *
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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