LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 14, 1997 TO: Honorable Keith Oakley, Chair IN RE: House Bill No. 3023 Committee on Public Safety By: Williams House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB3023 ( Relating to the regulation of private repossession agencies.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB3023-As Introduced Implementing the provisions of the bill would result in a net positive impact of $24,000 to General Revenue Related Funds through the biennium ending August 31, 1999. Fiscal Analysis The bill would add private repossession agencies to the regulatory authority of the Board of Private Investigators and Private Securities Agencies, add a member to the board, and create a new license (Class D) and combination licenses (Class E, F, & G). Methodolgy To determine the revenue impact of this bill, it is estimated that an average of 500 companies would apply for the new Class D license per year. A gain of $112,500 to General Revenue would be due to HB 3023 for 500 companies at license fee of $225 each year. It is estimated that there would be an offsetting cost of $100,500 for three FTEs (2 Investigators and 1 clerk, plus expenses) for inspections of these 500 companies. Total General Revenue impact would be only $12,000 per year. 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 Revenue Probable Gain/(Loss) from Savings/(Cost) General Revenue from General Fund Revenue Fund 0001 0001 1998 $112,500 ($100,500) 1998 112,500 (100,500) 2000 112,500 (100,500) 2001 112,500 (100,500) 2002 112,500 (100,500) 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 $12,000 1999 12,000 2000 12,000 2001 12,000 2002 12,000 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: 405 Department of Public Safety 467 Board of Private Investigators and Private Security Agencies 601 Department of Transportation LBB Staff: JK ,CB ,AM