LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session March 29, 1995 TO: Honorable David Sibley, Chair IN RE: Senate Bill No. 526 Committee on Economic Development By: Lucio Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on Senate Bill No. 526 (relating to certain business practices used in the collection of copyright royalties, providing 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 require the Texas Department of Licensing and Regulation to license royalty collectors. The department would be allowed to set the fees to cover expenses associated with the administration of the act. The department would be authorized to assess civil penalties up to $1000 for each violation and to regain the cost of prosecuting a case. Licenses would be renewed on an annual basis. Music broadcasters licensed by the FCC would be exempted. 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 Cost Out Probable Revenue Change in Year of General Gain Number of State Revenue to General Employees from Fund 001 Revenue FY 1995 Fund 001 1996 $90,961 $93,250 2.0 1997 85,174 93,250 2.0 1998 85,174 93,250 2.0 1999 85,174 93,250 2.0 2000 85,174 93,250 2.0 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: Department of Licensing and Regulation LBB Staff: JK, LR, RR