LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 23, 1997
         
         
      TO: Honorable John Whitmire, Chair            IN RE:  House Bill No. 2699, As Engrossed
          Committee on Criminal Justice                              By: Gray
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB2699 ( Relating 
to the continuation and functions of the Council on Sex Offender 
Treatment and to the administration of certain of those functions 
by the Texas Department of Health.) this office has detemined 
the following:
         
         Biennial Net Impact to General Revenue Funds by HB2699-As Engrossed
         
Implementing the provisions of the bill would result in a net 
positive impact of $140,000 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
 
The bill would amend Article 4413(51) of Vernon's Texas Civil 
Statutes and Section 413.009 (a), Government Code.  The bill 
would consolidate the regulatory functions of the Council on 
Sex Offender Treatment within the Texas Department of Health 
(TDH) and give the Criminal Justice Policy Council the authority 
to evaluate the effectiveness and need for a state-administered 
sex offender treatment program.  The bill also would increase 
the size of the Council from three to six part-time members 
and require the Council to recover its costs through fees and 
grants.
 
Methodolgy
 
The Council on Sex Offender Treatment is subject to the provisions 
of the Texas Sunset Act, and unless continued by the 75th Legislature, 
will be abolished September 1, 1997.  Funding for the Council 
on Sex Offender Treatment is included in the General Appropriations 
Act, as introduced, and is contingent upon passage of H.B. 2699 
or similar legislation.  The appropriations would be financed 
from general revenue and appropriated receipts in the amount 
of $115,000 and two employees in fiscal year 1998 and $110,000 
and two employees in fiscal year 1999.

Transferring the regulatory 
functions of the Council to TDH would result in savings due 
to the elimination of contracts by the Council for professional 
services for its budgeting and accounting and for temporary 
services.  These are functions that can be assumed by existing 
TDH budgeting and clerical staff at no additional cost.  No 
additional dedication of TDH staff for CSOT purposes is anticipated. 
 TDH can also provide enforcement and technical support to the 
Council at no additional cost.  Because the Council would no 
longer need to make annual expenditures of $18,000 for budgeting 
and accounting and $8,300 for temporary services, its probable 
annual savings to General Revenue would be $26,300.

Increasing 
the size of the Council from three to six members would result 
in additional cost to General Revenue of $3,300 annually, based 
on the Council's reimbursement rate for Council-related travel 
expenses in FY 1996  Each member was reimbursed at an average 
rate of $1,100 for the year.

Requiring the Council to recover 
costs through fees and grants would eliminate the agency's need 
for General Revenue funding.  The Council would either need 
to reduce its costs or increase its fees to make up for the 
$70,000 it currently receives in General Revenue funding.  By 
subtracting from the General Revenue appropriation of $70,000 
the estimated savings of $26,300 from the transfer of Council 
functions to TDH and adding the $3,300 cost of the additional 
three board members, the probable revenue gain that the Council 
would need to generate from fees is $47,000 annually.
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           Probable Revenue   Change in Number   
            Savings/(Cost)     Savings/(Cost)     Gain/(Loss) from   of State                             
            from General       from General       General Revenue    Employees from                       
            Revenue Fund       Revenue Fund       Fund               FY 1997                              
            0001               0001               0001                                                     
       1998           $26,300          ($3,300)           $47,000               0.0                  
       1998            26,300           (3,300)            47,000               0.0                  
       2000            26,300           (3,300)            47,000               0.0                  
       2001            26,300           (3,300)            47,000               0.0                  
       2002            26,300           (3,300)            47,000               0.0                  
 
 
         Net Impact on General Revenue Related Funds:
 

 
              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related Funds
                                             Funds
               1998              $70,000
               1999               70,000
               2000               70,000
               2001               70,000
               2002               70,000
 
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:            Agencies:   501   Department of Health
                                         116   Sunset Advisory Commission
                                         
                      LBB Staff:   JK ,CB ,BP