HB 1786

84(R) - 2015
House Licensing & Administrative Procedures
House Licensing & Administrative Procedures
Licensing & Administrative Procedures

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral


Harold Dutton Jr.

Bill Caption

Relating to the transfer of driver and traffic safety education from the Texas Education Agency to the Texas Department of Licensing and Regulation; changing the amounts of certain fees.

Fiscal Notes

HB 1786 would have a positive impact of $718,991 through the biennium ending August 31, 2017. With a positive impact on the General Revenue Fund of $412,512 for each year after the biennium. 

This analysis assumes there would be a net revenue gain to the state as a result of the lower cost of program operation resulting from transferring the programs to TDLR, while maintaining the current program fee generated revenue. Currently, TEA collects $1,812,639 in revenue and has the equivalent of 1.0 FTE for accounting, legal,and rulemaking support. TEA contracts with the Education Service Center, Region 13 (ESC-13) for the majority of the administration of this program. The current ESC-13 contract amount is $1,812,639. Based on information submitted by TEA, this analysis assumes TDLR will need additional FTEs, beyond the 1.0 FTE currently at TEA, to bring the program in-house. According to TDLR, the program transfer will increase the agency's total license population by 3,700. To respond to the increased workload TDLR estimates a cost of $1,092,784 in fiscal year 2016 and $987,471 each subsequent year. TDLR anticipates the need for 14 FTEs, with salaries totaling $629,400 each year. The net increase in benefits and payroll contributions costs are estimated to be $230,214 per fiscal year. Additionally, TDLR's analysis assumes total rent, travel, and other operating expenses of $88,827 per fiscal year. TDLR also assumes a cost to the program of $56,004 each year for conducting background checks and issuing plastic cards to instructors. According to information provided by DPS, the agency collects $1,692,794 in appropriated receipts for the enrollment of students into the PTDE program. Additionally, DPS allocates $685,077 from the State Highway Fund 066 to the program. The program costs DPS $413,016 each year to operate, which includes $208,019 in salaries and wages, $70,477 in benefits and payroll costs,and $134,520 in other operating costs representing the production and mailing costs of PTDE packets. The equivalent of 0.75 FTEs are utilized for preparing the Parent Taught Curriculum review and 4.75 FTEs are utilized for PTDE packet preparation. This analysis assumes that the funding related to operational expenses of $413,016 each fiscal year,and equivalent number of FTEs related to the PTDE program would be transferred to TDLR. This analysis assumes that any increased costs to TDLR, which is statutorily required to generate sufficient revenue to cover its costs of operation, would be offset by an increase in fee generated revenue. The bill would remove the statutory requirement to license driver training school directors,assistant directors,and administrative staff. This small loss in licensing revenue from the decrease in licensees is not anticipated to be significant. The Department of Public Safety, Department of Assistive and Rehabilitative Services, Department of State Health Services,and the State Office of Administrative Hearings all anticipate any additional work resulting from the passage of the bill could be reasonably absorbed within their current resources. 

Bill Analysis

HB 1786 seeks to transfer the Texas Education Agency's (TEA) regulatory authority, functions, and activities of public drivers education programs to the Texas Department of Licensing and Regulation (TDLR). The bill would also allow the Commission of Licensing and Regulation to establish application, license, and registration fees to be determined after passage. 

Vote Recommendation Notes

5/25 Update:

This bill is substantively the same as when we reported on it in its original chamber. We continue to remain neutral on HB 1786. The Senate sponsor is Sen. Campbell. 

First chamber recommendation below:

HB 1786 seeks to implement to suggestions from the 2012 Sunset review of the TEA which suggested transferring the drivers education program over to TDLR. This transfer of function and authority better aligns the program with the mission of its overseeing political subdivision. HB 1786 does not state what the fees under the Commission will be, but they could be lower than before. The bill's overall focus is to follow through with the Sunset Commission's recommendation and realign the drivers education program to a more appropriate agency. Because HB 1786 neither limits nor expands government, we are neutral on this legislation.