LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              April 5, 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.), Committee Report 1st
               House, Substituted
  
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*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB370, Committee Report 1st House, Substituted:  negative impact      *
*  of $(6,880,017) 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                         $(5,243,376)  *
          *       2001                          (1,636,641)  *
          *       2002                          (1,486,598)  *
          *       2003                          (1,486,598)  *
          *       2004                          (1,486,598)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
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*Fiscal    Probable Savings/(Cost) from     Change in Number of State     *
* Year         General Revenue Fund           Employees from FY 1999      *
*                      0001                                               *
*  2000                      $(5,243,376)                            32.5 *
*  2001                       (1,636,641)                            37.5 *
*  2002                       (1,486,598)                            37.5 *
*  2003                       (1,486,598)                            37.5 *
*  2004                       (1,486,598)                            37.5 *
***************************************************************************
  
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 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 bill would require the Commission on Public Safety 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 or 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 a commissioned officer to inspect
commercial motor carriers if the Department determined the presence of
an officer was required to accomplish the inspection.  The use of
non-commissioned staff to comply with the bill would not reduce the
number of commissioned officers.
  
  
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
processing 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, and $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 cost of $67,008 per position
(salaries, benefits, operating costs, capital and other costs) for the
first year and $34,967 per position (salaries and benefits) in subsequent
years for using non-commissioned staff to supplement commercial motor
vehicle inspections.  The estimate assumes 20 non-commissioned staff will
supplement commissioned officers at fixed sites for a total cost of
$1,340,166 in FY2000 and $699,346 in subsequent years.

Non-commissioned Staff to Inspect Commercial Motor Carriers.

The fiscal impact is based on an estimated cost of $67,008 per position
(salaries, benefits, operating costs, capital and other costs) for the
first year and $34,967 per position (salaries and benefits) in subsequent
years for using non-commissioned staff to supplement inspections of
commercial motor carriers.  The estimate assumes ten non-commissioned
staff will supplement commissioned officers for inspections of commercial
motor carriers for a total cost of $335,042 in FY2000, $509,878 in
FY2001 and $349,673 in subsequent years.

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, VS