LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 3, 1997 TO: Honorable Ron Wilson, Chair IN RE: House Bill No. 1321, Committee Report 1st House, Substituted Committee on Licensing & Administrative Procedures By: Uher House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB1321 ( Relating to the regulation of the practice of engineering; providing penalties.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB1321-Committee Report 1st House, Substituted Implementing the provisions of the bill would result in a net positive impact of $56,700 to General Revenue Related Funds through the biennium ending August 31, 1999. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. Fiscal Analysis This bill would amend the Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil Statutes) by updating definitions and allowable enforcement actions under the act, and by providing the Board of Professional Registration for Professional Engineers with the authority to issue administrative penalties and fines. The bill would be effective upon passage. Methodolgy The estimated gain in revenue is derived from the new administrative penalties that would be authorized by the bill and the number of violations in fiscal 1996. The agency anticipates additional costs to implement the bill due to hearings and travel associated with processing the administrative penalties allowed by the bill. The probable fiscal implications of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Five Year Impact: Fiscal Year Probable Probable Revenue Savings/(Cost) Gain/(Loss) from from General General Revenue Revenue Fund Fund 0001 0001 1998 ($12,150) $40,500 1998 (12,150) 40,500 2000 (12,150) 40,500 2001 (12,150) 40,500 2002 (12,150) 40,500 Net Impact on General Revenue Related Funds: The probable fiscal implication to General Revenue related funds during each of the first five years is estimated as follows: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $28,350 1999 28,350 2000 28,350 2001 28,350 2002 28,350 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: Agencies: LBB Staff: JK ,TH