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