Honorable Larry Phillips, Chair, House Committee on Homeland Security & Public Safety
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
HB2246 by Villalba (Relating to the suspension and issuance of certain driver's licenses; affecting the prosecution of an offense; increasing fees.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for HB2246, As Introduced: a positive impact of $14,040,843 through the biennium ending August 31, 2017.
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2016
$6,768,091
2017
$7,272,752
2018
$7,138,199
2019
$7,138,199
2020
$7,138,199
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 2015
2016
$8,599,180
($1,831,089)
19.5
2017
$8,599,180
($1,326,428)
21.6
2018
$8,599,180
($1,460,981)
24.0
2019
$8,599,180
($1,460,981)
24.0
2020
$8,599,180
($1,460,981)
24.0
Fiscal Analysis
The bill would amend the Transportation Code to create an ignition interlock driver's license (IIL). The bill would allow a person to apply for a IIL if the person is otherwise eligible to drive and has been convicted of certain offenses.
The bill would impose an application fee of $100 for an ILL. This would replace the current $10 fee for persons required by the Department of Public Safety (DPS) to have ignition interlock devices installed on their vehicles. For persons who already have IILs, the bill would authorize DPS to extend their existing IILs for a fee of $10.
The bill would amend the Transportation Code to increase the fee for the issuance or renewal of an occupational driver's license from $10 to $25, and add IILs to this subsection.
This bill would take effect September 1, 2015.
Methodology
It is assumed implementation of the bill would require additional resources for DPS' Driver's License Division (DLD). It is assumed these costs would come from the General Revenue Fund 01.
It is assumed the DLD would require two Program Supervisor III FTEs in each fiscal year to supervise additional Customer Service Representatives (17.5 FTEs in fiscal year 2016, 19.6 FTEs in fiscal year 2017 and 22.0 FTEs in each following fiscal year). The Customer Service Representatives would process the estimated 120,000 new cases estimated by DPS that would be created by the bill each fiscal year. These Customer Service Representatives would require specialized training in ignition interlock devices generally and the requirement relating to ignition interlock licenses specifically. As such, the additional Customer Service Representatives would be phased in over the course of three fiscal years to allow for an adequate training schedule.
The cost for the two Program Supervisor III positions is assumed to be $146,628 per fiscal year ($109,522 for salaries and $37,106 for associated benefits). The cost for the 17.5 Customer Service Specialists in fiscal year 2016 is assumed to be $981,113 ($732,830 for salaries and $248,283 for associated benefits). The cost for 19.6 Customer Service Specialists in fiscal year 2017 is assumed to be $1,098,847 ($820,770 for salaries and $278,077 for associated benefits). Finally, the cost for the 22.0 Customer Service Specialists in fiscal year 2018 and beyond is assumed to be $1,233,399 ($921,272 for salaries and $312,127 for associated benefits).
It is assumed the bill would have a positive revenue impact on the General Revenue Fund.
First, the bill would increase the occupational and IIL issuance fee to $25, which DPS estimates would generate an additional $303,555 per fiscal year. This amount is based on 20,237 occupational license issuances in fiscal year 2014 generating $202,370 at $10 per license. If the fees would be raised to $25, and assuming fiscal year 2014 occupational license issuance levels, the projected revenue per fiscal year would be $505,925 in General Revenue for occupational licenses. The incremental increase would be the $505,925 minus the current $202,370 in each fiscal year.
Second, the bill would require a $100 nonrefundable application fee for all IILs issued, which DPS estimates would generate $8,295,625 per fiscal year. This amount is based on 90,823 orders of suspension in fiscal year 2014, with 24,458 hearings scheduled. DPS assumes it would begin ordering IIL requirements based on these total orders of suspensions minus the hearings scheduled, which would result in a total of 66,365 suspensions. DPS assumes each of these suspensions would generate an IIL requirement ($100 application fee and $25 renewal fee), resulting in revenues of $8,295,625 to the General Revenue Fund ($125 x 66,365).
Finally, the projected amount of fee revenue collected for the $10 IIL extension is indeterminate as restricted licenses do not currently have an end date or need of extension.
Technology
The bill is assumed to have no significant technology impact.
Local Government Impact
The fiscal impact to local governments would vary based on the number of ignition interlock licenses granted. This analysis assumes that a portion of occupational licenses filed through local courts may be issued as ignition interlock licenses through the Department of Public Safety. There may be revenue loss to counties resulting from a reduction of fees. Currently, Tarrant County assesses $239-$241 in filing fees for an occupational license.
Source Agencies:
212 Office of Court Administration, Texas Judicial Council, 304 Comptroller of Public Accounts, 360 State Office of Administrative Hearings, 405 Department of Public Safety, 601 Department of Transportation