LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 16, 1997
         
         
      TO: Honorable Hugo Berlanga, Chair            IN RE:  House Bill No. 3410
          Committee on Public Health                              By: Hirschi
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB3410 ( Relating 
to the practice of psychological associates and psychologists.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB3410-As Introduced
         
Implementing the provisions of the bill would result in a net 
positive impact of $3,251,184 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 allow the master's degree to become the minimum 
educational level required for all Licensed Psychologists, Certified 
Psychologists, and Licensed Psychological Associate.

Providing 
that before September 1, 1998 , the bill would grandparent  
any individual who has a master's degree primarily in psychology 
from a regionally accredited educational institution and two 
years of experience in the field, or related field to become 
a Licensed Psychological Associate without examination. 
 
Methodolgy
 
It is assumed that a $300 application fee, along with a $650 
written examination fee will be assessed for an estimated 2,110 
applicants.   In every fiscal year following 1998, it is estimated 
that an additional 610 per year will apply, with 305 actually 
becoming certified.

It is assumed that 100% of these certified 
psychologists will qualify and apply for licensure as a psychologist 
in fiscal year 1998.  Each would pay an application fee of $140 
and oral exam fee of $300.

The bill would allow for the qualification 
for licensure as a psychological associate; It is assumed that 
 6,850 such applications will be received for fiscal year 1998. 
 Each would pay an application fee of $150, and be "grandparented" 
in as a licensed psychological associate upon meeting the Board's 
qualifications.

According to the Comptroller of Public Accounts, 
there would be a revenue gain from applications for certification 
as psychologists and ongoing revenue gain from payment of renewal 
fees by the individuals that pass the exam.  The largest increases 
in revenue would come from licensing as psychological associates, 
individuals without doctoral degrees in psychology. 

Costs 
associated with this bill include 7.5 additional FTEs, 3 investigator 
II positions, 1 secretary, 1.5 for administrative tech.  related 
to application/renewal duties, and 2 (temporary) data entry 
clerks for the initial year of implementation.  Also included 
were additional operating expenses. 
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   Change in Number   
            Savings/(Cost)     Gain/(Loss) from   of State                                                
            from General       General Revenue    Employees from                                          
            Revenue Fund       Fund               FY 1997                                                 
            0001               0001                                                                        
       1998        ($820,780)        $2,162,000               7.5                                    
       1998         (417,036)         2,327,000               5.5                                    
       2000         (548,569)         1,780,000               5.5                                    
       2001         (574,040)         1,889,000               5.5                                    
       2002         (597,452)         1,997,000               5.5                                    
 
 
         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           $1,341,220
               1999            1,909,964
               2000            1,231,431
               2001            1,314,960
               2002            1,399,548
 
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:   304   Comptroller of Public Accounts
                                         520   Board of Examiners of Psychologists
                      LBB Staff:   JK ,BB ,ER