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