LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 78TH LEGISLATIVE REGULAR SESSION

April 30, 2003

TO:	Honorable Steve Ogden, Chair, Senate Committee on Infrastructure Development and Security
FROM:	John Keel, Director, Legislative Budget Board
IN RE:	SB1679 by Gallegos (Relating to the driving record of the holder of a commercial driver's license and the operation of commercial motor vehicles; creating an offense.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for SB1679, As Introduced: a positive impact of $32,194,195 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	$15,889,767
2005	$16,304,428
2006	$16,304,428
2007	$16,304,428
2008	$16,304,428

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain from GENERAL REVENUE FUND 1	Probable Revenue (Loss) from GENERAL REVENUE FUND 1	Change in Number of State Employees from FY 2003
2004	$17,470,440	($1,580,673)	29.0
2005	$17,470,440	($1,166,012)	29.0
2006	$17,470,440	($1,166,012)	29.0
2007	$17,470,440	($1,166,012)	29.0
2008	$17,470,440	($1,166,012)	29.0

Fiscal Analysis

The bill would amend the Transportation Code and the Penal Code as it relates to the driving record of the holder of a commercial driver's license and the operation of commercial motor vehicles.  The bill would require employers of individuals who hold a commercial driver’s license to obtain information every six months on convictions related to motor vehicle traffic control, disqualifications from driving a commercial motor vehicle, and reports made under Section 522.104, Transportation Code. 

Methodology

The Department of Safety (DPS) reports there are approximately 650,000 commercial driver's license operators in Texas.  The bill would require an employer to obtain a driver record every six months to include specific violations and administrative enforcement actions, which would amount to 1,300,000 records per year.  DPS reports that driver records including the information required by the bill cost $20 per request (certified abstracts) and are not available through the agency's online interactive system.  DPS assumes 90 percent of the motor carriers will purchase the records and estimates a potential revenue gain of $17,470,440 per year (1,300,000 records multiplied by 90 percent multiplied by $20 equals $23,400,000 minus current sales of individual commercial driving records of $5,929,560).  DPS estimates it would require 29 full-time employees (FTEs) for the manual processing of the additional driver record requests, revenue collections, and programming requirements. FTE costs total $625,764 with associated benefits totaling $178,092.  Fiscal year 2004 implementation costs include mail machines, computers and other office equipment totaling $414,661.  Operating costs total $362,156 per year.

Technology

Technology impact associated with the bill would include computers, printers, software, enterprise agreements, a revenue processing/document imaging system, and professional fees.  Technology start-up costs total $210,317 in fiscal year 2004 and $56,834 per year thereafter.

Local Government Impact

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

Source Agencies:	405 Department of Public Safety, 601 Department of Transportation
LBB Staff:	JK, JO, RR, VDS, AR