LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

May 2, 2003

TO:	Honorable Steve Ogden, Chair, Senate Committee on Infrastructure Development and Security
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	SB1447 by Shapiro (Relating to the creation and implementation of the driver responsibility program.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for SB1447, As Introduced: a negative impact of ($2,925,559) through the biennium ending August 31, 2005.

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
2004	($1,982,945)
2005	($942,614)
2006	($998,023)
2007	($1,000,828)
2008	($1,003,218)

All Funds, Five-Year Impact:

Fiscal Year	Probable (Cost) from GENERAL REVENUE FUND 1	Probable Revenue Gain/(Loss) from TEXAS MOBILITY FUND 365	Change in Number of State Employees from FY 2003
2004	($1,982,945)	$119,875,965	23.0
2005	($942,614)	$227,502,858	23.0
2006	($998,023)	$335,119,521	23.0
2007	($1,000,828)	$335,119,521	23.0
2008	($1,003,218)	$335,119,521	23.0

Fiscal Analysis

The bill would amend the Transportation Code to implement a driver responsibility program administered by the Department of Public Safety.  The program would consist of assessing motor vehicle points against the licenses of drivers who commit certain driving offenses. The bill would require an annual surcharge be assessed against drivers whose licenses had accumulated six or more points within the preceding 36 months. The surcharge would be $100 for the first six points and $25 for each additional point. The bill would also require annual surcharges, not to exceed three years, for the following offenses: driving while intoxicated or refusal to consent to intoxication testing —$1,000 for the first and second offense, increasing to $1,500 for the third offense; driving with a suspended or revoked license or without proof of financial responsibility—$250; or, driving with an expired or without a valid driver's license—$100.  The bill would require the funds to be deposited into the Texas Mobility Fund Account. 

Methodology

The Department of Public Safety (DPS) has estimated the revenue gain based on statistics from FY 2000, FY 2001, and FY 2002.  The revenue estimate also assumes a compliance rate for the payment of the surcharges of 66 percent.

DPS reports the bill would generate approximately 547,000 new surcharge cases per year for the first three years.  DPS reports the Driver Improvement Bureau, Safety Responsibility Bureau, Customer Service Bureau , Information Management Services, and Mail Operations would require additional FTEs, operating equipment, and rental space to implement the provisions of the bill.  The FTEs would be responsible for mainframe system reprogramming, evaluating the driver cases, processing compliance items, applying appropriate points to the driver history, handling customer service inquiries, and processing payments.  Employee benefits are calculated at 28.46 percent of salaries and wages.

Technology

DPS reports the bill would require the purchase of desktop computers, printers, software, enterprise agreements, digital imaging equipment, upgrades to the mainframe, and contract programming services which total $1,016,673 in fiscal year 2004 and $3,338 in fiscal years 2005 through 2008.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:	304 Comptroller of Public Accounts, 405 Department of Public Safety
LBB Staff:	JK, RR, JO, WK, VDS, AR