LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session May 11, 1999 TO: Honorable Florence Shapiro, Chair, Senate Committee on State Affairs FROM: John Keel, Director, Legislative Budget Board IN RE: HB3757 by Giddings (Relating to approved drug and alcohol driving awareness programs.), As Engrossed ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB3757, As Engrossed: negative impact of $(416,868) 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 Net Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2000 $(229,434) * * 2001 (187,434) * * 2002 (187,434) * * 2003 (187,434) * * 2004 (187,434) * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable Probable Revenue Change in Number of * * Year Savings/(Cost) from Gain/(Loss) from State Employees from * * General Revenue Fund General Revenue Fund FY 1999 * * 0001 0001 * * 2000 $(281,684) $52,250 3.0 * * 2001 (206,684) 19,250 3.0 * * 2002 (206,684) 19,250 3.0 * * 2003 (206,684) 19,250 3.0 * * 2004 (206,684) 19,250 3.0 * ************************************************************************** Fiscal Analysis The bill would require the Texas Education Agency to develop and implement a driver awareness program designed to educate individuals concerning the dangers of driving while under the influence of drugs or alcohol. TEA would be required to develop a course of instruction, establish qualifications and a certification process for providers, and monitor and coordinate the educational programs. The curriculum for the program would be developed in coordination with the Texas Commission on Alcohol and Drug Abuse (TCADA). The Department of Insurance would be require insurance companies to offer a 5% discount on auto coverage for individuals completing the course. The bill provides the authorization for TEA to impose fees to cover the cost of implementation and administration of the program. Methodology The administrative cost of the program are the responsibility of the Texas Education Agency. The costs to TEA are estimated to be $281,684 in FY2000 and $206,684 for each year thereafter to account for contracting costs and 3 additional employees to implement and administer the program. TEA provided fee revenue data based on activities of a similar program when it was implemented by TCADA. Revenue amounts include one-time revenues of $33,000 for course curriculum and provider approvals and on-going revenues of $19,250 for school and instructor renewal fees and course completion certificates (2,000 certificates at $4 each). The $4 fee per certificate is based on the fee limitation for certificates issued by driving safety courses, since the bill indicates the programs are to be offered in a similar manner to driving safety courses. To recover the actual cost of the program with only 2,000 certificates issued each year, the fee per certificate would approach $100. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 517 Commission on Alcohol and Drug Abuse, 701 Texas Education Agency - Administration LBB Staff: JK, SD, TH