LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 10, 1997
         
         
      TO: Honorable Pete Patterson, Chair            IN RE:  House Bill No. 1577
          Committee on Agriculture & Livestock                              By: Uher
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB1577 ( Relating 
to peer assistance programs for licensed veterinarians.) this 
office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB1577-As Introduced
         

Implementing the provisions of the bill would result in a 
net negative impact of $(12,000) 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 require that administrative penalty fees be 
used as the only source to fund the Peer Assistance program 
for the Board of Veterinary Medical Examiners.  Current law 
allows the Board to assess a surcharge on each veterinary license 
for the peer assistance program.  The bill would create a new 
General Revenue-dedicated account. 
 
Methodolgy
 
The peer assistance program is funded based on collected revenue. 
 An annual amount of $15,408 is projected to be collected in 
revenue from surcharges on the license fees in fiscal years 
1998 and 1999.   The average annual amount of administrative 
penalty fees generated over the past five years is $6,000, these 
fees have been deposited into the General Revenue Fund and not 
appropriated to the peer assistance program for the Board of 
Veterinary Medical Examiners.

The impact of this bill would 
be a loss to the General Revenue Fund of ($6,000), and a reduction 
of 61% in funding for the agency's Peer Assistance program at 
the Board of Veterinary Medical Examiners.
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   Probable Revenue   
            Savings/(Cost)     Gain/(Loss) from   Gain/(Loss) from                                        
            from General       General Revenue    New - GR Dedicated                                      
            Revenue Fund       Fund                                                                       
            0001               0001               NEW-DED                                                  
       1998           $15,408         ($21,408)            $6,000                                    
       1998            15,708          (21,708)             6,000                                    
       2000            15,708          (21,708)             6,000                                    
       2001            15,708          (21,708)             6,000                                    
       2002            15,708          (21,708)             6,000                                    
 


 
         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             ($6,000)
               1999              (6,000)
               2000              (6,000)
               2001              (6,000)
               2002              (6,000)
 
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
          
No significant fiscal implication to units of local government 
is anticipated.
          
   Source:            Agencies:   578   Board of Veterinary Medical Examiners
                                         304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,BB ,ER