HB1615: relative to driver education and the driver training fund.

HB 1615-FN - AS INTRODUCED

2022 SESSION

22-2651

12/10

HOUSE BILL 1615-FN

AN ACT relative to driver education and the driver training fund.

SPONSORS: Rep. Almy, Graf. 13; Rep. Sykes, Graf. 13; Sen. Watters, Dist 4

COMMITTEE: Transportation

ANALYSIS

This bill directs the department of safety to distribute $250 to approved driving schools for each pupil who completes the driver education program in the prior 3 months.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

22-2651

12/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty Two

AN ACT relative to driver education and the driver training fund.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Driver Training Fund; Driver Education Payments. RSA 263:52 is repealed and reenacted to read as follows:

263:52 Driver Training Fund.

I. The proceeds from original license fees as provided in RSA 263:42 and the vanity plate service fee collected in accordance with RSA 261:89, plus the fee for the renewal of the use of such plates, after any refunding authorized by law and costs of such plates or designation of effective periods thereof and issuance of same have been appropriated and deducted, shall be expended for course materials for the students of licensed driving schools, licensing of driving schools, certification of instructors, and the payments to licensed driving schools made pursuant to paragraph II. Licensed driving schools may include in-house arrangements made by public and private high schools. Such balance shall be kept in a separate fund. The commissioner of safety shall adopt, pursuant to RSA 541-A, and publish, rules governing the courses of instruction and training and rules governing the eligibility of licensed driving schools to receive moneys from the fund.

II. Fifteen days after the beginning of each quarter, beginning in September 2023, the fund shall distribute to participating driving schools the sum of $250 for each pupil who has completed the driver education program in the prior quarter. The driving school shall provide proof that their standard fee has been reduced by the amount of this subsidy for the eligible pupils.

III. Beginning with the fiscal year commencing July 1, 2024, any unencumbered funds shall lapse to the general fund at the end of the fiscal year.

2 New Subparagraph; Rulemaking Authority; Commissioner of Safety. Amend RSA 21-P:14, I by inserting after subparagraph (g) the following new subparagraph:

(h) Payments to licensed driving schools pursuant to RSA 263:52, II.

3 Effective Date. This act shall take effect July 1, 2022.

LBA

22-2651

Redraft 12/17/21

HB 1615-FN- FISCAL NOTE

AS INTRODUCED

AN ACT relative to driver education and the driver training fund.

FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None

Estimated Increase / (Decrease)

STATE:

FY 2022

FY 2023

FY 2024

FY 2025

Appropriation

$0

$0

$0

$0

Revenue

$0

($1,675,000)

($1,675,000)

($1,675,000)

Expenditures

$0

$1,675,000

$1,675,000

$1,675,000

Funding Source:

[ X ] General [ ] Education [ ] Highway [ X ] Other - Driver Training Fund and Restricted Revenue to State Police Detective Bureau

LOCAL:

Revenue

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Expenditures

$0

$0

$0

$0

METHODOLOGY:

This bill would provide $250 from the driver training fund (RSA 263:52) to participating driver education schools for each pupil who completes the school-based driver education program in the prior 12 months. Currently, most driver education classes are offered by private driver education schools approved by the State. It is the assumption that the bill intends to provide funding for each pupil regardless of whether the program is completed in a private or public school. Based on a three-year average, there are approximately 12,700 students who complete a driver education program annually, this would total $3,175,000 per year (12,700 x $250). The breakdown of public school versus private students is unavailable, therefore this bill’s impact on local revenue is indeterminable.

Under current law, net revenue from the driver training fund, less driver training program expenses and $1,500,000 per year restricted to the Department of Safety Division of State Police Detective Bureau, is remitted to the state general fund. The amount remitted to the general fund in FY 2021 was $5,748,086.

This bill eliminates the $1,500,000 per year restricted revenue, effective in FY 2023, which would be a significant impact to the budget of the State Police Detective Bureau, and according to the Department would result in the elimination of positions within the Major Crime Unit and the Narcotics Investigations Unit. Based on the expenditure estimates above, this bill would result in the amount of revenue remitted to the general fund decreasing by $1,675,000 in FY 2024 and each year thereafter:

Increase / (Decrease)

FY 2024 and Each Fiscal Year Thereafter

Impact Attributable to $250 Payments

Driver Training Fund Expenditures - Payments to Driving Schools

$3,175,000

Unrestricted Revenue - General Fund

($3,175,000)

Impact Attributable to Elimination of $1.5M Restricted Revenue

Restricted Revenue - Detective Bureau

($1,500,000)

Detective Bureau Expenditure of Restricted Revenue

($1,500,000)

Unrestricted Revenue - General Fund

$1,500,000

NET GENERAL FUND IMPACT

($1,675,000)

AGENCIES CONTACTED:

Department of Safety