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