LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session March 26, 1997 TO: Honorable Allen Hightower, Chair IN RE: House Bill No. 2699 Committee on Corrections By: Gray House 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 Introduced 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: 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 $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