LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION March 8, 2011 TO: Honorable Larry Phillips, Chair, House Committee on Transportation 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 Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1148, As Introduced: an impact of $0 through the biennium ending August 31, 2013. LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION March 8, 2011 TO: Honorable Larry Phillips, Chair, House Committee on Transportation 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 Introduced TO: Honorable Larry Phillips, Chair, House Committee on Transportation 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 Introduced Honorable Larry Phillips, Chair, House Committee on Transportation Honorable Larry Phillips, Chair, House Committee on Transportation John S O'Brien, Director, Legislative Budget Board John S O'Brien, Director, Legislative Budget Board 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 Introduced 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 Introduced Estimated Two-year Net Impact to General Revenue Related Funds for HB1148, As Introduced: an impact of $0 through the biennium ending August 31, 2013. Estimated Two-year Net Impact to General Revenue Related Funds for HB1148, As Introduced: 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 2012 $0 2013 $0 2014 $0 2015 $0 2016 $0 All Funds, Five-Year Impact: Fiscal Year Probable Revenue Gain/(Loss) fromTEXAS MOBILITY FUND365 2012 ($45,480) 2013 ($45,480) 2014 ($45,480) 2015 ($45,480) 2016 ($45,480) Fiscal Year Probable Revenue Gain/(Loss) fromTEXAS MOBILITY FUND365 2012 ($45,480) 2013 ($45,480) 2014 ($45,480) 2015 ($45,480) 2016 ($45,480) 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. 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. 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 405 Department of Public Safety LBB Staff: JOB, KJG, GG, ESi JOB, KJG, GG, ESi