LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 19, 1995 TO: Honorable John Smithee, Chair IN RE: House Bill No. 2072 Committee on Insurance By: DeLaGarza House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 2072 (relating to the licensing and regulation of public adjusters; providing criminal penalties) this office has determined the following: 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 bill would amend the Insurance Code for the licensing and regulation of public adjusters, including licensing requirements, security requirements, continuing education, prohibited conduct and criminal penalties. The Department of Insurance would issue the licenses and regulate licensee activities. Implementation of the bill would result in revenue gains to the State from licensing application fees. The department estimates that 150 public adjusters would apply for licenses during the first year and an additional 10 would become licensed in each subsequent year. Figures shown in the table are based on these estimates for an initial application fee of $250 and a renewal fee of $75. Greater gains would occur depending upon the number of applications for reciprocal licenses ($1,500) and trainee certificates ($125). Additional workload associated with implementing the bill's provisions would be accomplished with existing agency resources within similar current functions. The probable fiscal implication of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Fiscal Probable Revenue Year Gain to Department Insurance Operating Fund 036 GR Consolidated 1996 $37,500 1997 13,750 1998 14,500 1999 15,250 2000 16,000 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No fiscal implication to units of local government is anticipated. Source: Comptroller of Public Accounts, Department of Insurance LBB Staff: JK, RM, RR