LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 31, 2009 TO: Honorable John Carona, Chair, Senate Committee on Transportation & Homeland Security FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB1317 by Wentworth (Relating to education and examination requirements for the issuance of a driver's license to certain persons.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for SB1317, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION March 31, 2009 TO: Honorable John Carona, Chair, Senate Committee on Transportation & Homeland Security FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB1317 by Wentworth (Relating to education and examination requirements for the issuance of a driver's license to certain persons.), Committee Report 1st House, Substituted TO: Honorable John Carona, Chair, Senate Committee on Transportation & Homeland Security FROM: John S. O'Brien, Director, Legislative Budget Board IN RE: SB1317 by Wentworth (Relating to education and examination requirements for the issuance of a driver's license to certain persons.), Committee Report 1st House, Substituted Honorable John Carona, Chair, Senate Committee on Transportation & Homeland Security Honorable John Carona, Chair, Senate Committee on Transportation & Homeland Security John S. O'Brien, Director, Legislative Budget Board John S. O'Brien, Director, Legislative Budget Board SB1317 by Wentworth (Relating to education and examination requirements for the issuance of a driver's license to certain persons.), Committee Report 1st House, Substituted SB1317 by Wentworth (Relating to education and examination requirements for the issuance of a driver's license to certain persons.), Committee Report 1st House, Substituted Estimated Two-year Net Impact to General Revenue Related Funds for SB1317, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2011. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. Estimated Two-year Net Impact to General Revenue Related Funds for SB1317, Committee Report 1st House, Substituted: an impact of $0 through the biennium ending August 31, 2011. 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 2010 $0 2011 $0 2012 $0 2013 $0 2014 $0 2010 $0 2011 $0 2012 $0 2013 $0 2014 $0 All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromGeneral Revenue Fund - Driver Education Fees1 Change in Number of State Employees from FY 2009 2010 ($348,598) $348,598 2.5 2011 ($178,086) $178,086 2.5 2012 ($178,086) $178,086 2.5 2013 ($178,086) $178,086 2.5 2014 ($178,086) $178,086 2.5 Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Revenue Gain/(Loss) fromGeneral Revenue Fund - Driver Education Fees1 Change in Number of State Employees from FY 2009 2010 ($348,598) $348,598 2.5 2011 ($178,086) $178,086 2.5 2012 ($178,086) $178,086 2.5 2013 ($178,086) $178,086 2.5 2014 ($178,086) $178,086 2.5 2010 ($348,598) $348,598 2.5 2011 ($178,086) $178,086 2.5 2012 ($178,086) $178,086 2.5 2013 ($178,086) $178,086 2.5 2014 ($178,086) $178,086 2.5 Fiscal Analysis The bill would prohibit the Department of Public Safety (DPS) from issuing a driver's license to a person younger than age 25 unless the person presents a certificate indicating completion of an approved driver education course. Persons aged 17 and younger would be required to provide proof of completion of a driver education course approved by the Texas Education Agency (TEA). The bill would require the Commissioner of Education to establish curriculum and designate educational materials for driver education programs for both minors and adults only. The bill would permit the Commissioner to charge a fee to driver education programs to cover the expense of regulating adult-only courses approved by TEA. The bill would prohibit the Department of Public Safety (DPS) from issuing a driver's license to a person younger than age 25 unless the person presents a certificate indicating completion of an approved driver education course. Persons aged 17 and younger would be required to provide proof of completion of a driver education course approved by the Texas Education Agency (TEA). The bill would require the Commissioner of Education to establish curriculum and designate educational materials for driver education programs for both minors and adults only. The bill would permit the Commissioner to charge a fee to driver education programs to cover the expense of regulating adult-only courses approved by TEA. Methodology TEA estimates 2.5 additional FTEs would be required to review and approve teen and adult-only driver education programs, including online courses, according to the provisions of the bill at a cost of $187,879 in fiscal year (FY) 2010 and $167,129 in each subsequent year inclusive of salary, benefits, travel, and other operating costs. TEA estimates technology costs of $160,719 in FY 2010 and $10,957 in subsequent years. TEA estimates that fees authorized by the bill would provide sufficient revenue to offset these costs. DPS estimates a one-time technology cost of $27,800 to modify systems to comply with the new criteria for driver applicants between age 18 and age 25 established by the bill. The agency is expected to be able to absorb this cost with existing resources. TEA estimates 2.5 additional FTEs would be required to review and approve teen and adult-only driver education programs, including online courses, according to the provisions of the bill at a cost of $187,879 in fiscal year (FY) 2010 and $167,129 in each subsequent year inclusive of salary, benefits, travel, and other operating costs. TEA estimates technology costs of $160,719 in FY 2010 and $10,957 in subsequent years. TEA estimates that fees authorized by the bill would provide sufficient revenue to offset these costs. DPS estimates a one-time technology cost of $27,800 to modify systems to comply with the new criteria for driver applicants between age 18 and age 25 established by the bill. The agency is expected to be able to absorb this cost with existing resources. Local Government Impact School districts might incur some administrative costs to comply with DPS standards, but these costs are not expected to be significant. Source Agencies: 405 Department of Public Safety, 701 Central Education Agency 405 Department of Public Safety, 701 Central Education Agency LBB Staff: JOB, KJG, JSp, JGM, JSc, LG JOB, KJG, JSp, JGM, JSc, LG