LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION

April 26, 2011

TO:	Honorable Tommy Williams, Chair, Senate Committee on Transportation & Homeland Security
FROM:	John S O'Brien, Director, Legislative Budget Board
IN RE:	HB1148 by Smith, Wayne (Relating to an exemption for certain disabled veterans from the payment of a fee for the issuance of a personal identification certificate.), As Engrossed

Estimated Two-year Net Impact to General Revenue Related Funds for HB1148, As Engrossed: an impact of $0 through the biennium ending August 31, 2013.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2012	$0
2013	$0
2014	$0
2015	$0
2016	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain/(Loss) from TEXAS MOBILITY FUND 365
2012	($45,480)
2013	($45,480)
2014	($45,480)
2015	($45,480)
2016	($45,480)

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, 2011.

Methodology

The Department of Public Safety (DPS) indicated the Veterans Administration estimates the number of disabled veterans in Texas with service related disabilities of at least 60 percent or greater is 72,433. However, it is assumed that not all disabled veterans will apply for an identification card. Of the estimated 72,433 disabled veterans with a 60 percent or greater disability, 23,923 already have no-cost driver licenses and will not require a DPS identification card. Of the remaining 48,510 disabled veterans, it is assumed approximately 25 percent will obtain a free DPS identification card (48,510*0.25 = 12,128). The DPS identification card is valid for four years, so it is assumed one-fourth of the 12,128 disabled veterans will obtain a free ID card in each year of this analysis (12,128*0.25 = 3,032). At a cost of $15 per ID card, it is assumed that the bill would result in an annual revenue loss of $45,480 per year (3,032*$15 = $45,480). This analysis also assumes DPS could implement the provisions of the bill within existing resources.

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, GG, ESi