LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION May 8, 2023 TO: Honorable Robert Nichols, Chair, Senate Committee on Transportation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1846 by Ashby (Relating to the skills test required for a commercial driver's license for certain commercial learner's permit holders.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for HB1846, As Engrossed : a negative impact of ($17,729,880) through the biennium ending August 31, 2025. The fiscal implications to the Texas Mobility Fund No. 365 cannot be determined at this time due to a lack of reliable information to provide a reasonably sound basis for estimating the impact of the bill because the number of additional skills tests that are second or third attempts is unknown. 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 toGeneral Revenue Related Funds2024($14,894,149)2025($2,835,731)2026($2,835,731)2027($2,835,731)2028($2,835,731)All Funds, Five-Year Impact: Fiscal Year Probable (Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 20232024($14,894,149)30.02025($2,835,731)30.02026($2,835,731)30.02027($2,835,731)30.02028($2,835,731)30.0 Fiscal AnalysisThe bill would amend the Transportation Code to require the Department of Public Safety (DPS) to administer a skills test to a person with a commercial learner's permit issued by another state or jurisdiction and send the results of the skills test to the state or jurisdiction.The bill would take effect September 1, 2023.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
May 8, 2023
TO: Honorable Robert Nichols, Chair, Senate Committee on Transportation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1846 by Ashby (Relating to the skills test required for a commercial driver's license for certain commercial learner's permit holders.), As Engrossed
TO: Honorable Robert Nichols, Chair, Senate Committee on Transportation
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB1846 by Ashby (Relating to the skills test required for a commercial driver's license for certain commercial learner's permit holders.), As Engrossed
Honorable Robert Nichols, Chair, Senate Committee on Transportation
Honorable Robert Nichols, Chair, Senate Committee on Transportation
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB1846 by Ashby (Relating to the skills test required for a commercial driver's license for certain commercial learner's permit holders.), As Engrossed
HB1846 by Ashby (Relating to the skills test required for a commercial driver's license for certain commercial learner's permit holders.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for HB1846, As Engrossed : a negative impact of ($17,729,880) through the biennium ending August 31, 2025. The fiscal implications to the Texas Mobility Fund No. 365 cannot be determined at this time due to a lack of reliable information to provide a reasonably sound basis for estimating the impact of the bill because the number of additional skills tests that are second or third attempts is unknown. 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 HB1846, As Engrossed : a negative impact of ($17,729,880) through the biennium ending August 31, 2025. The fiscal implications to the Texas Mobility Fund No. 365 cannot be determined at this time due to a lack of reliable information to provide a reasonably sound basis for estimating the impact of the bill because the number of additional skills tests that are second or third attempts is unknown. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
The fiscal implications to the Texas Mobility Fund No. 365 cannot be determined at this time due to a lack of reliable information to provide a reasonably sound basis for estimating the impact of the bill because the number of additional skills tests that are second or third attempts is unknown.
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:
2024 ($14,894,149)
2025 ($2,835,731)
2026 ($2,835,731)
2027 ($2,835,731)
2028 ($2,835,731)
All Funds, Five-Year Impact:
2024 ($14,894,149) 30.0
2025 ($2,835,731) 30.0
2026 ($2,835,731) 30.0
2027 ($2,835,731) 30.0
2028 ($2,835,731) 30.0
Fiscal Analysis
The bill would amend the Transportation Code to require the Department of Public Safety (DPS) to administer a skills test to a person with a commercial learner's permit issued by another state or jurisdiction and send the results of the skills test to the state or jurisdiction.The bill would take effect September 1, 2023.
Methodology
According to DPS, a License and Permit Specialist can conduct a maximum of 4 skills tests in a day, or 992 annually. In fiscal year 2022, 117,547 Commercial Driver's License (CDL) skills tests were administered by the Department. Based on information provided by the agency, under the provisions of the bill the number of skills tests conducted would increase by 25.0 percent each fiscal year, or 29,387, and would require 30.0 additional License and Permit Specialist positions (29,387 additional skills tests / 992 skills tests conducted per position). This analysis includes $2,179,001 in General Revenue in fiscal year 2024 and $2,305,233 in fiscal year 2025 for salary and benefits.Additional CDL drive lanes would be needed for 30.0 License and Permit Specialist to conduct the additional skills tests. A single CDL drive lane can accommodate 2.0 License and Permit Specialists conducting tests simultaneously. According to DPS, the cost to develop one CDL drive lane is approximately $812,310. This analysis assumes a one-time cost of $12,184,650 in General Revenue for 15 additional CDL drive lanes in fiscal year 2024.Other costs including utilities, consumables, and other operating expenses would total $530,498 in General Revenue each fiscal year.Transportation Code Sec. 522.029 establishes a $96 fee for the issuance of a CDL and requires all fee revenue be deposited to the credit of the Texas Mobility Fund (TMF). Each fee entitles an applicant to three attempts to pass the skills test, if needed. This analysis assumes a positive impact to the TMF as fee revenue would increase along with the number of skills tests conducted, but the impact cannot be determined due to the number of additional skills tests that are second or third attempts, being unknown.
Based on information provided by the agency, under the provisions of the bill the number of skills tests conducted would increase by 25.0 percent each fiscal year, or 29,387, and would require 30.0 additional License and Permit Specialist positions (29,387 additional skills tests / 992 skills tests conducted per position). This analysis includes $2,179,001 in General Revenue in fiscal year 2024 and $2,305,233 in fiscal year 2025 for salary and benefits.Additional CDL drive lanes would be needed for 30.0 License and Permit Specialist to conduct the additional skills tests. A single CDL drive lane can accommodate 2.0 License and Permit Specialists conducting tests simultaneously. According to DPS, the cost to develop one CDL drive lane is approximately $812,310. This analysis assumes a one-time cost of $12,184,650 in General Revenue for 15 additional CDL drive lanes in fiscal year 2024.Other costs including utilities, consumables, and other operating expenses would total $530,498 in General Revenue each fiscal year.Transportation Code Sec. 522.029 establishes a $96 fee for the issuance of a CDL and requires all fee revenue be deposited to the credit of the Texas Mobility Fund (TMF). Each fee entitles an applicant to three attempts to pass the skills test, if needed. This analysis assumes a positive impact to the TMF as fee revenue would increase along with the number of skills tests conducted, but the impact cannot be determined due to the number of additional skills tests that are second or third attempts, being unknown.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 405 Department of Public Safety
405 Department of Public Safety
LBB Staff: b > td > JMc, AAL, KFB, DA, CMA
JMc, AAL, KFB, DA, CMA