LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session May 7, 1997 TO: Honorable Keith Oakley, Chair IN RE: House Bill No. 3604, Committee Report 1st House, as amended Committee on Public Safety By: Oakley House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB3604 ( Relating to the abolition of the Texas Board of Private Investigators and Private Security Agencies and the transfer of the functions of that agency to the State Board of Security Agencies.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB3604-Committee Report 1st House, as amended Implementing the provisions of the bill would result in a net negative impact of $(10,544,000) 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 This bill would abolish the Texas Board of Private Investigators and Private Security Agencies and transfer the functions of that agency to a new State Board of Security Agencies (Board). The transfer of the obligations, property, rights, powers, and duties of the Texas Board of Private Investigators and Private Security Agencies must be completed within 30 days of the effective date of the bill. All money paid to the board, except for fines, would be deposited to a new dedicated account in the general revenue fund and may be used for the administration of the bill's provisions. Fines would continue to be deposited in general revenue. Currently, both fines and fees are deposited in the State Treasury to the credit of the General Revenue Fund. Methodolgy This bill would create a new dedicated account in the General Revenue Fund and a new dedicated revenue source in the State Treasury. The bill would dedicate fee revenue that currently is deposited in the undedicated portion of the General Revenue Fund. Unexpended funds from existing appropriations to the Texas Board of Private Investigators and Private Security Agencies would be transferred to the State Board of Security Agencies. This estimate assumes the board would continue to collect the same amount of revenue. Money collected from fines would continue to be deposited in the General Revenue Fund. 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 Revenue Gain/(Loss) from Gain/(Loss) from General Revenue New GR-Dedicated Fund Account - 0001 8021 1998 ($5,272,000) $5,272,000 1998 (5,272,000) 5,272,000 2000 (5,272,000) 5,272,000 2001 (5,272,000) 5,272,000 2002 (5,272,000) 5,272,000 Net Impact on General Revenue Related Funds: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 ($5,272,000) 1999 (5,272,000) 2000 (5,272,000) 2001 (5,272,000) 2002 (5,272,000) 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: 467 Board of Private Investigators and Private Security Agencies 304 Comptroller of Public Accounts LBB Staff: JK ,CB ,AM