LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

Revision 1

March 23, 2007

TO:	Honorable Leticia Van de Putte, Chair, Senate Committee on Veteran Affairs & Military Installations
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB371 by Williams (Relating to an exemption for certain disabled veterans from the fees required for the issuance of a personal identification certificate.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for SB371, As Introduced: an impact of $0 through the biennium ending August 31, 2009.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2008	$0
2009	$0
2010	$0
2011	$0
2012	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain/(Loss) from TEXAS MOBILITY FUND 365
2008	($70,870)
2009	($57,870)
2010	($57,870)
2011	($57,870)
2012	($57,870)

Fiscal Analysis

This bill would amend the Transportation Code as it relates to an exemption for certain disabled veterans from the fees required for the issuance of a personal identification certificate.

This bill would amend Transportation Code, Section 521.426 which states a veteran who served in the United States’ armed forces who was: 1) honorably discharged, 2) has a service-related disability of 60 percent and 3) receives compensation because of the disability is exempt from the payment of fees for the issuance of a personal identification certificate. The bill would take effect on September 1, 2007.

Methodology

As of January 2007, The Veterans Administration estimates that the number of disabled veterans with service related disabilities of at least 60% or greater is 72,076. However, it is assumed that not all disabled veterans will apply for an identification card. DPS estimates that 14,788 disabled veterans with existing driver licenses and 18,707 veterans with 100 percent disability who can receive a military identification card at no cost will not require a DPS identification card totaling 38,581 individuals not requiring an identification card (72,076-14,788-18,707 = 38,581).  In addition, DPS states the current ratio of identification card holders to driver license holders is 25 percent leaving 28,936 individuals accessing a DPS identification card (38,581 - 9,645 = 28,936). This analysis assumes it is not necessary for every disabled veteran to request an identification certificate each year and it is assumed that it would take a total of five years for all disabled veterans to request an identification certificate (28,936 veterans / 5 years = 5,787 veterans per year). At a cost of $10.00, it is further assumed that the bill would result in an annual revenue loss of $ 57,870 per year (5,787 X $15 = $57,870).

Technology

DPS states the technology costs estimated to comply with exemption for certain disabled veterans from the fees required for the issuance of a personal identification certificate includes a one-time cost of $13,000 (65 hours of programming x $200 per hour) in Texas Mobility Fund 365 in fiscal year 2008 for program changes to the driver's license/identification card system.

Local Government Impact

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

Source Agencies:

405 Department of Public Safety

LBB Staff:

JOB, ES, GG, LG