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