LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session March 31, 1999 TO: Honorable Ken Armbrister, Chair, Senate Committee on Criminal Justice FROM: John Keel, Director, Legislative Budget Board IN RE: SB370 by Brown, J. E. "Buster" (Relating to the continuation and functions of the Department of Public Safety of the State of Texas.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB370, As Introduced: negative impact of $(3,995,585) 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 $(3,568,168) * * 2001 (427,417) * * 2002 (437,579) * * 2003 (437,579) * * 2004 (437,579) * **************************************************** All Funds, Five-Year Impact: ************************************************************************** *Fiscal Probable Probable Change in Number of * * Year Savings/(Cost) from Savings/(Cost) from State Employees from * * General Revenue Fund State Highway Fund FY 1999 * * 0001 0006 * * 2000 $(3,568,168) $224,560 7.5 * * 2001 (427,417) 1,142,190 7.5 * * 2002 (437,579) 116,340 7.5 * * 2003 (437,579) 116,340 7.5 * * 2004 (437,579) 116,340 7.5 * ************************************************************************** Technology Impact Technology impact for the bill would total $3,460,095 in FY2000, $320,954 in FY2001, and $331,116 in subsequent years. The costs would be incurred by Information Management Services to implement changes to the Distributive Driver's License System and to allow for electronic transactions for identification cards and driver licenses and for payments by credit card. Technology impact would include $2,710,000 for hardware and software to implement the process changes and 5 additional FTEs in Information Management Services. Fiscal Analysis The Department of Public Safety (DPS) would be continued through September 1, 2009. The Commission on Public Safety would be expanded from three to six members. The bill would require the Commission to establish procedures and practices for an employee to appeal a disciplinary action and to address an employment-related grievance. The bill would allow an employee recommended for discharge to use external mediation services. The Commission would be required to approve all Department expenditures of seized and forfeited assets. The bill would establish and specify the powers and duties of the Office of Audit and Review. The Commission would be required to establish an Office of Internal Affairs. The bill would modify requirements to receive or renew a personal identification certificate and to renew a driver license. Renewals of a driver license or personal identification certificate would be allowed by mail, telephone, Internet, or other electronic means. The bill would authorize the use of alternative forms of payment, including credit cards, for the renewal of a driver license or personal identification certificate. The Department would be authorized to use non-commissioned staff to inspect commercial motor vehicles at fixed site facilities. The Department would be required to use non-commissioned staff to inspect commercial motor carriers. Methodology Employee Grievance Procedures Estimated cost is $104,063 for the first year and $102,463 in subsequent years for 2.5 additional FTEs. Costs for external mediation of recommended discharges are estimated at $4,000/year (5 requests for mediation x 8 hours per mediation x $100 per hour). Electronic renewal of Identification Cards and Driver Licenses The bill would require significant changes to the Distributed Driver License System and to the mainframe applications supporting the mainframe-based Driver License System, to provide for electronic renewals and the ability to accept credit card payments. A host-based connection to a credit card clearinghouse would be developed. Card swipe hardware would be installed at each clerk's station. The fund accounting processes would require modification to track transactions paid for by credit card. Costs are estimated at $3,460,095 in FY2000, $320,954 in FY2001, $331,116 in subsequent years. Five additional FTEs would be needed. Non-commissioned Staff to Inspect Commercial Motor Vehicles The fiscal impact is based on an estimated net cost savings of $44,912 per position (salaries, operating costs, capital and other costs) for the first year and $3,878 per position (salaries) in subsequent years for using non-commissioned staff to perform commercial motor vehicle inspections. The estimate assumes 20 non-commissioned staff will replace commissioned officers at fixed sites for a savings of $898,240 in FY2001 and $77,560 in subsequent years. The agency total of commissioned officers would be reduced by 20. Non-commissioned Staff to Inspect Commercial Motor Carriers. The fiscal impact is based on estimated net cost savings of $44,912 per position (salaries, operating costs, capital and other costs) for the first year and $3,878 per position (salaries) in subsequent years for using non-commissioned staff to perform inspections of commercial motor carriers. The estimate assumes ten non-commissioned staff will replace commissioned officers for inspections of commercial motor carriers for a savings of $224,560 in FY2000, $243,950 in FY2001 and $38,780 in subsequent years. The agency total of commissioned officers would be reduced by ten. Office of Internal Affairs and Office of Audit and Review These units would be formed from the current Internal Affairs, Internal Audit, and Inspection and Planning Units of the Department, Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: LBB Staff: JK, MD, BP, VS