LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION
 
May 14, 2005

TO:
Honorable Joe Driver, Chair, House Committee on Law Enforcement
 
FROM:
John S. O'Brien, Deputy Director, Legislative Budget Board
 
IN RE:
SB696 by Ogden (Relating to testing and examination fee requirements for certain provisional license holders.), As Engrossed



Estimated Two-year Net Impact to General Revenue Related Funds for SB696, As Engrossed: a positive impact of $354,602 through the biennium ending August 31, 2007.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.



Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2006 $174,244
2007 $180,358
2008 $180,358
2009 $165,412
2010 $165,412




Fiscal Year Probable Revenue Gain/(Loss) from
GENERAL REVENUE FUND
1 		Probable Savings/(Cost) from
GENERAL REVENUE FUND
1 		Change in Number of State Employees from FY 2005
2006 $306,080 ($131,836) 4.0
2007 $306,080 ($125,722) 4.0
2008 $306,080 ($125,722) 4.0
2009 $306,080 ($140,668) 4.0
2010 $306,080 ($140,668) 4.0

Fiscal Analysis

The bill would amend the Transportation Code as it relates to testing and examination fee requirements for certain provisional license holders.

The bill would require certain provisional license holders (those convicted of a moving violation or those whose license was suspended by the Department of Public (DPS) due to one or more incidents involving the operation of a motor vehicle during the preceding year) to pass a DPS administered driving test and pay a $10 examination fee before DPS would be allowed to issue a provisional driver license (renewal or reinstatement). The examination fee would be in addition to any other fee currently required for a renewal or reinstatement of a provisional license.

The bill would require the $10 examination fee be deposited to the credit of a special account in the General Revenue Fund and be used only by DPS for the administration of provisional driver license examinations, renewals, and reinstatements.

The bill would take effect September 1, 2005 and would apply only to applications for the renewal or reinstatement of a provisional driver's license submitted on or after the effect date of the act.

The bill would create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either within or outside the Treasury, or create a dedicated revenue source.  Therefore, the fund, account, or revenue dedication included in the bill would be subject to funds consolidation review by the current Legislature.


Methodology

Under the provisions of the bill, DPS would be allowed to collect a $10 examination fee from provisional license holders who have been convicted of a moving violation or have their provisional license suspended by DPS due to one or more incidents involving the operation of motor vehicle during the preceding year. It is estimated that 21,211 provisional license holders receive a moving violation and 9,397 have a provisional license suspended each fiscal year. Thus, an additional 30,608 driving exams per fiscal year would be administered resulting in a revenue gain of $306,080 in General Revenue Funds in each fiscal year from the $10 examination fee. A zero growth rate was assumed over the projection period.

 

An additional 4 full-time-equivalent positions (FTEs) would be needed to comply with the driving examination requirements. The costs for these additional FTEs are estimated to be $131,836 in fiscal year 2006, $125,722 in fiscal year 2007, $125,722 in fiscal year 2008, $140,668 in fiscal year 2009, and $140,668 in fiscal year 2010. These costs include salaries, benefits, training, equipment, and other operating costs.

Local Government Impact

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


Source Agencies:
405 Department of Public Safety
LBB Staff:
JOB, KJG, VDS, SJ