LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              March 10, 1999
  
  
          TO:  Honorable Teel Bivins, Chair, Senate Committee on
               Education
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB328  by Harris (Relating to the regulation of driver's
               training courses and the issuance of certain driver's
               licenses), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB328, As Introduced:  negative impact of $(163,399) through the      *
*  biennium ending August 31, 2001.                                      *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Net Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2000                           $(159,547)  *
          *       2001                              (3,852)  *
          *       2002                               98,472  *
          *       2003                               98,472  *
          *       2004                               98,472  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***************************************************************************
*Fiscal    Probable Savings/(Cost) from    Probable Revenue Gain/(Loss)   *
* Year         General Revenue Fund         from General Revenue Fund     *
*                      0001                            0001               *
*  2000                        $(990,147)                        $830,600 *
*  2001                         (834,452)                         830,600 *
*  2002                         (732,128)                         830,600 *
*  2003                         (732,128)                         830,600 *
*  2004                         (732,128)                         830,600 *
***************************************************************************
  
Technology Impact
  
The legislation requires the Texas Education Agency (TEA) to establish a
database that would contain information relevant to driver education
certificates, and to make it available to the Texas Department of Public
Safety (DPS).  The agency estimates that such a database would cost
approximately $88,000 for the 2000-01 biennium, and $21,000 per year in
subsequent years.
  
  
Fiscal Analysis
  
The bill would require driver education programs provided by public
school districts to follow the same regulations that apply to commercial
driver education schools in addition to provisions districts must follow
under the Education Code.  The bill includes a number of provisions with
fiscal implications, including: exemption of the driver training
function of the agency from the FTE cap; removal of all requirements for
textbooks for driver education;  and requiring the agency to develop and
maintain a database for use by the DPS and driver education providers.
  
  
Methodology
  
Implementation of this bill would put the oversight of all driver
education courses, both public school districts and commercial programs
under the Texas Driver and Traffic Safety Education Act (TDTSEA).  Under
the provisions of the bill,  the driver education activities of public
schools would be subject to both the TDTSEA and the current state and
federal laws governing public school courses of instruction
simultaneously.

This fiscal note assumes TEA would increase the fee for driver education
certificates from $2 to $4 to offset the costs associated with the bill,
which it can do under current law.
  
  
Local Government Impact
  
There are potentially significant implications to local school districts
as a result of this legislation.

School district driver education instruction would be subject to TDTSEA.
School teachers providing instruction in such courses would be required
to obtain driver education instructor licenses under TDTSEA, in addition
to the existing driver education endorsement required by the State Board
of Educator Certification (SBEC).  The $25 fee for the initial license as
well as $25 per year to renew the license would be borne by these
teachers, unless their school districts reimbursed them.  In addition,
individual instructors would bear expenses for the additional college
credit required prior to initial licensure under TDTSEA.

Although the bill exempts school districts from some of the fees
associated with regulation under the TDTSEA, districts would become
liable for fees under several situations.  Current law allows the agency
to assess civil penalties against licensees who are found to be in
violation of current statutory requirements.  The civil penalty is up to
$1,000 a day for each violation.  Public schools and instructors would
be liable for penalty assessment under the law.
  
  
Source Agencies:   
LBB Staff:         JK, CT, RN, UP